Guide
How much life insurance do you need?
Discover a calculation tool plus the reasoning supporting it: income coverage years, outstanding debts, expected education costs, and any current coverage.
Start by calculating what your income would support, then deduct what's already in place. While this method won't be exact, that's fine—term insurance comes in fixed increments, and the objective is simply to find a level that sustains your household through the critical years.
Coverage estimate
Estimate = income × years + debts + education − existing coverage, then round to the nearest $5,000. This is a reference point, not professional guidance.
Why those inputs
Income years. Most advisors look at 10 to 20 years of income replacement; your specific number depends on how many years your family would need financial support. Families with younger children in Newark frequently lean toward the longer timeframe since major expenses—childcare, housing, schooling—cluster together.
Debts. For most people, the mortgage represents the single biggest debt. Setting coverage high enough to eliminate it gives survivors the freedom to remain in their home without financial strain.
Education. Set aside a rough amount per child in current dollars. Including this now is simpler than taking out a separate policy down the road.
What you have. Include liquid assets and employer-provided coverage. Bear in mind that workplace policies typically terminate when employment ends, so it's wise to factor in only a fraction.
Once you have settled on an amount, the quote tool will display the cost for that figure across 10-, 15-, 20-, 25-, and 30-year terms from all participating carriers. Many people elect coverage slightly above their calculations because the monthly cost difference is minimal during the early years.