Life Insurance Needs Calculator
Don't guess how much life insurance you need. Our calculator helps you get a realistic estimate based on your family's specific financial needs, so you can plan with confidence.
Estimate Your Coverage
Use the DIME method (Debt, Income, Mortgage, Education) to estimate your needs.
Learn More About Financial Planning
How to Use the Life Insurance Needs Calculator
- Select Your Currency: Choose your local currency for an accurate calculation.
- Enter Your Annual Income: Input your current pre-tax annual salary to calculate income replacement.
- Years of Support: Choose how many years your family would need your income. 10 years or until your youngest child graduates is a common benchmark.
- List Your Debts: Add up all non-mortgage debts, such as car loans, student loans, and credit card balances.
- Mortgage Balance: Enter the remaining amount owed on your home. This is often the largest debt for a family.
- Future Education Costs: Estimate the total amount you want to set aside for your children's higher education.
- Final Expenses: Input an amount for funeral and other end-of-life costs. A typical estimate is $15,000, but this can vary.
- Subtract Existing Assets: Enter any current savings, investments, or existing life insurance policies that can offset the total need.
- Click “Calculate”: Get your personalized life insurance coverage estimate instantly.
Why Accurate Life Insurance Calculation Matters
Choosing the right amount of life insurance is one of the most important financial decisions you can make for your family's future. It ensures that in the event of your passing, your loved ones are not burdened by financial hardship. A proper policy provides peace of mind.
- Income Replacement: Provides your family with a steady stream of income to cover daily living expenses for years to come.
- Debt Elimination: Pays off outstanding debts like a mortgage, car loans, or student loans, so your family can start with a clean slate.
- Future Goals: Funds long-term goals like your children's college education or a spouse's retirement.
- Peace of Mind: Knowing your family is financially secure provides invaluable peace of mind for you and them.
An online calculator is the best first step toward finding the right coverage amount. For more tips on long-term planning, see our decade-by-decade retirement guide.