Guide
How much life insurance do you need?
Explore a calculator plus the reasoning: income years, debt obligations, education funding, and what you already own.
Take the total income that would have been earned and subtract any existing coverage. This approach is not perfectly precise, but precision is unnecessary since term coverage is sold in round increments. The goal is picking a sum that would keep your household on track.
Coverage estimate
Amount = (income × years) + (debts) + (education) − (existing coverage), rounded to $5,000. Use this as a starting reference point; it is not financial guidance.
Why those inputs
Income years. Advisors typically suggest 10 to 20 years of income replacement; the specific term depends on how many years your dependents would require assistance. Families in Novato with young children commonly select longer terms since housing, education, and childcare costs align during those years.
Debts. Your mortgage is typically your largest obligation. Sufficient coverage to pay it off gives your heirs the choice of staying in the home without financial pressure.
Education. Budget a rough amount for each child's future schooling in current dollars. Addressing this now is less complicated than purchasing additional coverage later.
What you have. Include savings or investments available to your family, plus employer-provided coverage. Keep in mind that employer coverage usually ends when employment ends, so many families count only a portion of this benefit.
Once you know your target, the quote tool displays monthly costs for 10 to 30 years across all carriers. Purchasing additional coverage beyond what the calculator suggests is common; at younger ages, the monthly increase is often negligible.