Guide

How much life insurance do you need?

A tool plus the ideas behind it: calculating years of income replacement, estimating debt payoff, planning for education, and accounting for existing coverage.

A straightforward approach: take what your current income could cover over time, subtract existing protections, and aim for that as your target. Precision isn't critical here—coverage is typically set in round increments, and the objective is protecting household stability during important years.

Coverage estimate

Annual income to replace Years to replace it Mortgage and other debts Future education costs Savings and existing coverage

$1,765,000

Amount = (earnings × coverage years) + outstanding debts + education costs − current savings and employer coverage, rounding to the nearest $5,000 threshold. Use this as a beginning estimate, not as guidance.

Why those inputs

Income years. Most financial professionals suggest a range of ten to twenty years for income replacement, though the right selection depends on how long your dependents will need financial backing. In Santa Barbara, families with younger children often lean toward extended terms since childcare expenses, housing costs, and education spending typically converge in the same years.

Debts. The most significant obligation for most households is a home loan. Coverage sufficient to satisfy this debt gives the surviving family the choice of staying rather than having that decision made by finances.

Education. Budget a rough per-child amount in current dollars. It's better to include this amount now than to try to purchase separate coverage to fill the gap later.

What you have. Include liquid assets set aside for emergencies and any death coverage provided through an employer. Remember that employer-provided coverage typically disappears if you change jobs, which is why many people base their planning on only part of it.

Once you settle on a specific amount, the quote tool will show what that level of protection costs from each insurer across 10, 15, 20, 25, and 30-year options. Choosing more than the calculated estimate is common since the monthly cost increase is often small when you're younger.