Guide
How much life insurance do you need?
An interactive tool and explanation: how to think about income years, your debts, education expenses, and resources you already own.
A straightforward approach is to total your income-dependent expenses and subtract existing resources. This will not be exact—nor does it need to be. Term policies come in standard amounts, and the objective is simply to pick a number large enough to sustain your family through the critical years.
Coverage estimate
Try this formula: (annual income × years of dependence) + mortgage balance + estimated education costs − existing savings and group coverage = your estimate. Round to the nearest $5,000. This is a rough starting point only.
Why those inputs
Income years. Financial planners typically suggest insuring between ten and twenty years of income; your situation will determine the right span. Many Tracy families with young children lean toward the longer side because housing, school, and childcare expenses cluster during the same years.
Debts. A mortgage is usually the biggest liability. Enough coverage to pay it off gives your family the freedom to choose whether to keep the home, rather than being forced to sell by financial pressure.
Education. Set aside a rough per-child figure in today's dollars. It is more efficient to cover it in one policy now than to buy additional coverage later.
What you have. Include any savings available to your family and workplace group coverage. Since group coverage typically ends with employment, many people count only a fraction of it, if any.
Once you settle on a coverage amount, the quote tool will show you premiums for 10-, 15-, 20-, 25-, and 30-year terms across all carriers. Many applicants choose a figure higher than their initial estimate because the extra monthly cost is minimal when you are young.