Guide
How much life insurance do you need?
A tool for calculating how much you need, with explanations of the factors: earnings replacement, debt coverage, education savings, and existing coverage.
One method: total your obligations (income replacement for a set period plus debts) and subtract what you've already saved and your group policy.
Coverage estimate
Formula: (annual income × number of years) plus debts plus education costs, minus current savings and existing group coverage, rounded up to the nearest $5,000.
Why those inputs
Income years. Plan for 10 to 20 years of income replacement; the right number depends on your family's timeline and obligations.
Debts. A mortgage represents the biggest liability for most households. Coverage that would pay off your mortgage gives you peace of mind.
Education. A rough estimate per child in today's dollars works for planning. Listing it helps ensure your family can afford schooling.
What you have. Count liquid assets and benefits from a work-provided group policy. Group coverage typically ends if you change jobs.
Once you've settled on an amount, visit the quote tool to compare prices for coverage terms ranging from 10 to 30 years.