Guide
How much life insurance do you need?
A tool to work through the math: the years of income you want to replace, your debts, what you want to set aside for education, and the protection you already own.
A straightforward approach: estimate the years your household would need your income, multiply by your annual earnings, add major debts like a mortgage and college costs, then subtract whatever coverage already exists. The math doesn't have to be exact because coverage comes in standard amounts anyway. The goal is a number large enough to hold your family's finances together through the critical years.
Coverage estimate
Formula: annual income × number of years + total debts + education expenses − existing coverage, rounded to the nearest $5,000. Use this as a beginning point for conversation, not as professional guidance.
Why those inputs
Years of income needed. Advisors typically suggest looking at 10 to 20 years of income, but the right period depends on when your dependents will be independent. Parents with young kids in Diamond Bar often lean toward the longer terms because child care, housing, and school expenses all hit at once.
Outstanding debts. For most households, a home loan is the biggest obligation. If life insurance would pay off the mortgage, survivors gain the freedom to choose what to do next rather than being pushed by immediate financial pressure.
College and education. Budget for each child using today's dollars as a baseline. Including it now is simpler than taking out another policy in a few years.
Existing coverage. Add up emergency savings you could draw from, plus any group term coverage your employer provides. Since group coverage typically goes away if you leave the job, most people include only a fraction of their work policy.
Once you've calculated a target, use the quote tool to see pricing from multiple carriers for terms spanning 10 through 30 years. Many people end up selecting a slightly higher benefit because the monthly cost increase is modest when you're younger.