Guide
How much life insurance do you need?
Explore our tool to see how income, debts, education needs and existing coverage factor into your decision.
The standard approach: add your household income needs plus debts plus education costs, then subtract what savings or group coverage already covers. The final number doesn't demand exactness; term is priced in increments, and the goal is preserving your family's financial footing through your working years.
Coverage estimate
Use this formula: (annual income × number of years) + outstanding debts + college costs − current coverage = target amount. Round to the nearest five thousand dollars. It's a guideline, not financial advice.
Why those inputs
Income years. Most experts recommend coverage for between 10 and 20 years of income. The specific number depends on when your dependents will be self-supporting. Families in Lakewood with younger children often extend toward 20 years since childcare, housing, and school expenses peak during those decades.
Debts. For most households, a mortgage is the single biggest liability. Coverage large enough to pay it off gives your family the choice to stay or move, without being forced by financial pressure.
Education. For each child, budget a rough amount in today's money. Including this upfront is simpler than purchasing additional insurance later.
What you have. Account for emergency savings and employer group plans. Keep in mind that group coverage through work typically disappears when employment ends, so partial reliance on it may be premature.
Once you know your target, the quote tool displays pricing for 10, 15, 20, 25, and 30-year terms from each available carrier. Many people find they can afford modestly higher coverage at younger ages because the monthly increment is small.