Guide
How much life insurance do you need?
A tool and explanation for determining the right coverage amount: how many years of income to replace, major debts to account for, education funding, and what you already have in place.
A straightforward approach is to total what your income would have supported had it continued, then subtract existing resources. The calculation doesn't need to be exact—term policies are purchased in round numbers, and the goal is a figure that keeps your household functioning through the critical years.
Coverage estimate
Calculation: income × years needed + debts + education costs − resources you already have, rounded to the nearest $5,000. This is a starting point for your own decision, not professional guidance.
Why those inputs
Income years. Most advisors suggest between ten and twenty years; your best choice depends on how long dependents would need help. For families with young children in the Clovis area, the upper range is typical since housing, childcare, and education all demand resources at the same time.
Debts. The most significant debt for most families is a home mortgage. Insurance proceeds large enough to pay off the mortgage allow survivors the freedom to decide their own path rather than being forced by financial circumstances.
Education. A rough estimate per child in today's dollars. Building it into your coverage now is less complicated than buying a second policy later.
What you have. Liquid savings that could cover needs, and group insurance at work. Group policies usually end with employment, so many households count only a portion of this coverage.
Once you have a target amount, the quote tool shows the cost for that amount across 10 to 30-year terms from each carrier. Many people purchase slightly more than their estimate because the monthly cost difference is modest when you're young.