Guide
How much life insurance do you need?
A worksheet and the logic: how many years of income, existing obligations, education reserves, and coverage you already own.
The straightforward approach: total the years of income your household would need, plus outstanding debts and education costs, then subtract savings and workplace group coverage. Precision isn't required, and policies come in round numbers—aim for a total that sustains your family through the critical years.
Coverage estimate
Estimate = (annual income × years needed) + outstanding debts + education funds − current savings and group coverage, rounded to the nearest $5,000. Use as a starting point, not as guidance.
Why those inputs
Income years. Planners typically recommend between ten and twenty years of income replacement, though the exact duration depends on how long your dependents would actually need support. Families in Chico with young children frequently lean toward the longer end, since childcare expenses, housing costs and education charges all peak during the same period.
Debts. Mortgages rank as the biggest liability for most households. Sufficient coverage to settle the mortgage lets your family keep the home if they choose, rather than being pressured by cash flow needs.
Education. Set aside an estimate per child in current dollars. Adding funds to your policy now is simpler than buying additional coverage down the road.
What you have. Liquid savings available to the family, plus any group life coverage tied to employment. Remember that group coverage typically ends when the job ends, so many households count only a fraction of it.
Once you settle on an amount, the quote tool demonstrates pricing across 10-, 15-, 20-, 25-, and 30-year terms from all available carriers. Many choose amounts above their estimate since cost differences narrow when you're younger.