Guide
How much life insurance do you need?
A tool with an explanation: number of income years, existing debts, education expenses, and what you've already set aside.
A standard approach is to calculate your expected lifetime earnings and take away existing resources. It doesn't require precision: term policies are sold in round dollar amounts, and the goal is a number that would keep your household stable during the critical years.
Coverage estimate
Amount = (Annual income × Number of years) + Debts + Education − Current resources, rounded to the nearest $5,000. This is a starting calculation, not professional guidance.
Why those inputs
Years of income. Financial professionals typically recommend between ten and twenty years of your income; pick the number based on how long dependents require support. In Calexico households with small children, the longer span is frequent—childcare, homes, and schools absorb expenses all at once.
Debts. The mortgage is usually the largest debt for families. Coverage sufficient to eliminate it allows heirs to maintain their home without being forced to relocate due to financial pressure.
Education. A basic estimate per child in current dollars. Including it now is simpler than purchasing a second policy later.
What you have set aside. Bank accounts you could access if needed, and any group life coverage through your job. Group coverage often expires when you leave your job, so many individuals only count a portion of it.
Once you have a figure in mind, the quote tool will display what that amount costs across 10 to 30 years, broken down by each carrier. Choosing a somewhat larger amount is common—the monthly difference is minimal when you're younger.