Life Insurance Needs Calculator

How to Use the Calculator

This tool helps you calculate your ideal life insurance coverage by accounting for your income replacement needs, debts, future expenses, and existing assets. Input the following:

1. Income Replacement: Your annual income and the number of years you want to replace it.
2. Outstanding Debts: Mortgage, auto loans, credit card debt, student loans, and any other liabilities.
3. Future Education Costs: Projected costs for your children’s or dependents’ education.
4. Final Expenses: Funeral, burial, medical, or legal costs.
5. Existing Resources: Any current life insurance and savings/investments.

Click “Calculate Insurance Need” to see:

• Total financial obligations
• Total existing financial resources
• Your estimated life insurance need

Understanding the Results

Example using U.S. average data:

• Annual Income: $75,000
• Years to Replace: 15 → $1,125,000
• Debts:
  • Mortgage: $250,000
  • Auto Loan: $20,000
  • Student Loans: $28,000
  • Credit Cards & Other Debts: $15,000
    → Total Debts: $313,000
• Future Education Costs: $100,000 per child (x2) = $200,000
• Final Expenses: $15,000 (funeral and medical)
• Existing Savings/Investments: $50,000
• Current Life Insurance: $100,000

Total Financial Needs: $1,125,000 + $313,000 + $200,000 + $15,000 = $1,653,000
Total Existing Resources: $150,000
Estimated Life Insurance Need: $1,503,000

This gives a reliable benchmark for your personal coverage goals.

Why This Matters

Life insurance ensures that your family:

• Has a steady income to cover living costs
• Can stay in the family home
• Won’t be burdened by debt
• Can afford future education and final expenses

Tips for Choosing a Policy

• Choose Term Length Wisely: Match to the years needed for income replacement
• Update Coverage as Life Changes: Adjust for marriage, children, mortgage, etc.
• Use Riders for Flexibility: Such as accelerated death benefit or disability waiver

Use our calculator now to get clarity on your insurance needs and make informed decisions.

FAQ:
Q: How often should I review my life insurance coverage?
A: Review every 2–3 years or after major life events.
Q: Is term life or whole life better?
A: Term life is more affordable for most people; whole life offers lifelong coverage and cash value.
Q: Can I adjust my policy later?
A: Many policies allow changes, but check with your insurer.
Q: What if I already have some life insurance through work?
A: Group policies often aren’t enough—calculate your total need to see the gap.