Guide
How much life insurance do you need?
A simple tool and the methodology behind it, covering: how many years of income to replace, debt payoff, education contributions, and existing resources.
The standard approach is: add what your household income would cover for others, then subtract what's already in place. It won't be perfect, and it doesn't have to be: coverage amounts are sold in round figures, and the goal is ensuring your family stays financially stable through the most critical years.
Coverage estimate
Estimate = (annual income × years of support) + outstanding debts + education costs − resources you already have, rounded up to the nearest $5,000. This is just a starting point, not a recommendation.
Why those inputs
Income years. Financial planners typically suggest coverage spanning 10 to 25 years of income based on your family's support duration needs. Households with young children in Highland often choose the higher end since child-raising expenses, housing costs, and education overlap.
Debts. Your primary obligation for most families is the mortgage. Insurance proceeds that clear the mortgage balance give survivors the choice to keep the home without being forced into sale by cash flow requirements.
Education. A basic allocation per child in today's dollars helps avoid purchasing a second policy later to cover school costs.
What's already in place. Bank savings available for use and employer group coverage both count. Most group policies end when employment ends, so many financial advisors count only a portion of it.
After you calculate your coverage need, the quote comparison tool lets you get costs for 10 to 30 year terms from all participating carriers. Many families purchase somewhat above their calculated amount because the extra monthly cost at younger ages is minimal.