Guide
How much life insurance do you need?
A tool to calculate your coverage need, plus explanation of the logic: how many years of income to cover, what debts matter, education planning, and what coverage you already hold.
Start by tallying your income for the years you'd want coverage, add your debts and expected education costs, subtract any coverage you have now, and round to a number that feels right. You don't need precision—life insurance premiums are quoted in round amounts anyway, and the aim is simply to keep your household okay during the years that matter most.
Coverage estimate
Estimate = (annual income × number of years) + total debts + education costs − existing coverage, rounded to the nearest $5,000. This is a ballpark figure for getting started, not financial guidance.
Why those inputs
Income years. Most people plan for 10 to 20 years of income replacement, but it varies: it all hinges on how long dependents would need financial help. Families with small children in Gilroy frequently select the longer end of the range because costs for childcare, housing, and schools all peak at the same stage of life.
Debts. A mortgage represents the biggest debt for most households. If a policy's death benefit would pay it off, your loved ones could choose to stay in the home without being forced by finances to sell.
Education. Set aside a rough budget per child based on costs today. Baking this in now is simpler than trying to add a second policy later on.
What you already have. Include any savings available to your family and group life insurance through an employer. Keep in mind that group coverage typically stops when you leave the job, so it's smart to factor in only part of it.
Once you've decided on a coverage amount, the quote tool lets you see monthly rates for that amount across 10-, 15-, 20-, 25-, and 30-year terms from each carrier. Many people go with slightly more coverage than their estimate suggests, since the cost difference is usually small when you're younger.