Guide
How much life insurance do you need?
A calculator with explanation: how to think about income years, debts, education funding, and existing coverage.
A straightforward approach: sum what your income would provide over the years, add debts and education needs, subtract existing coverage and assets, then round to a practical figure. Precision is unnecessary; the goal is a number that bridges the gap for as long as it matters.
Coverage estimate
Formula: (annual income × years needed) + debts + education costs − existing coverage and savings. Round to the nearest $5,000. This is a guide, not financial advice.
Why those inputs
Income duration. Financial planning typically assumes 10 to 20 years of income replacement based on when dependents become independent. In Chico and similar communities, households with young children often select the longer end because childcare, education, and housing needs overlap.
Outstanding debts. Most households carry a mortgage as their largest debt. Coverage sufficient to eliminate it gives survivors financial freedom to keep their home if they wish.
Education costs. Budget per child in current dollars. Including this now avoids the need to apply for additional coverage later.
Existing resources. Savings and liquid assets that could cover expenses, plus any group life insurance from an employer. Group coverage typically ends at job termination, so most people discount it partially.
Once you have a coverage goal in mind, the quote tool displays what that amount costs across 10- to 30-year terms from every carrier. Many applicants choose slightly higher amounts than estimated because the monthly cost difference is modest at younger ages.