Guide
How much life insurance do you need?
A breakdown of the calculation with a tool to run the numbers: income years, debts to cover, education allowances and existing resources.
The most practical approach combines your annual income with your dependents' expected years of need, minus what you've already set aside or have through employer coverage. It doesn't have to be precise: most people think in round numbers anyway, and the goal is simply a figure that would keep dependents stable through the critical years.
Coverage estimate
Quick math: (annual income × number of years) plus debts plus education costs, then subtract existing savings or group coverage, and round to the nearest $5,000. Use this as a starting calculation, not as advice.
Why those inputs
Years of contribution. Financial professionals usually suggest anywhere from a decade to two decades depending on when your dependents would no longer require income support. Azusa families with young children tend toward the longer range because expenses for childcare, rent, and school cluster in the same years.
Loans and mortgages. Most households consider the mortgage their largest obligation. Enough coverage to pay it off in full gives survivors the option to stay in their home without needing to sell.
College expenses. Setting aside an allowance per child in today's dollars simplifies the picture. It's easier to include this in your first policy than to buy more coverage later.
Existing resources. Liquid savings you could use, and employer-provided coverage if your workplace offers it. Keep in mind most employer policies terminate with employment, so many families only count a portion of it in their calculation.
Once you've calculated your target coverage, use the quote tool to see how it prices across 10-year through 30-year terms with every carrier. Many families budget a slightly higher amount than their formula suggests because each additional step up in monthly cost is usually modest at younger ages.