Guide
How much life insurance do you need?
A simple tool plus the thinking behind it: how many years of income to replace, what debts you carry, education costs, and assets already in place.
A straightforward method is to add up how many years of household expenses your income would cover, then subtract what you already have in place. It's not exact, and it doesn't need to be: policies are sold in $50,000 increments, and your goal is a number that would allow your household to maintain stability through the years that matter most.
Coverage estimate
Coverage estimate = annual income × years of income + outstanding debts + education savings − current savings and group coverage, rounded to the nearest $5,000. This is a starting point, not professional financial advice.
Why those inputs
Income years. Financial advisors commonly recommend replacing 10 to 20 years of income; the precise number depends on how long your household members would need support. Many San Ramon families with young children pick the upper range due to the combination of housing costs, childcare expenses, and schooling fees that bunch together.
Debts. Most families carry a mortgage as their largest debt. A coverage amount that would pay off your home loan allows your family to decide whether to keep the house based on preference, not financial pressure.
Education. Set aside a rough estimate per child in today's dollars. It's more practical to include this now than to purchase additional coverage later.
What you have. Savings you could access immediately, and employer-provided life insurance through work. Most group coverage ends when employment ends, so many people count just a fraction of it toward their total coverage.
Once you've decided on an amount, the quote tool can show you what that monthly payment would be across 10 to 30 year terms from multiple carriers. Purchasing a bit more coverage than your estimate is common because the monthly premium difference is relatively modest for younger applicants.