Guide
How much life insurance do you need?
A computational tool and the concepts behind it: income years, debts, education funding, and current resources.
A straightforward approach: add up the years of income your household would require, then subtract what's already in place. It doesn't have to be exact—coverage amounts are chosen in round numbers, and the target is merely a number that would let your household continue without major disruption while you are working.
Coverage estimate
A straightforward approach: add up the years of income your household would require, then subtract what's already in place. It doesn't have to be exact—coverage amounts are chosen in round numbers, and the target is merely a number that would let your household continue without major disruption while you are working.
Why those inputs
A straightforward approach: add up the years of income your household would require, then subtract what's already in place. It doesn't have to be exact—coverage amounts are chosen in round numbers, and the target is merely a number that would let your household continue without major disruption while you are working.
Debts. Mortgages represent the largest financial obligation for most households. With coverage sufficient to pay off a mortgage, survivors can choose to stay in the home without being forced by financial pressure to leave.
Education. A simple per-child estimate in current-year dollars works well. It's more practical to include this now than to buy additional coverage later.
Current resources. Emergency savings and employer-provided insurance both count. Note that group coverage through employment typically ends once you leave that job, so many households count only a portion of it.
Real monthly rates from carriers, with the lowest amounts listed first. Each quote shows whether a medical exam is necessary, possibly necessary, or unnecessary.