Life Insurance Needs Calculator
Determine how much life insurance coverage your family needs. Factor in income replacement, outstanding debts, education costs, funeral expenses, and existing resources to find your coverage gap.
How much life insurance do you need?
A common rule of thumb is 10–12 times your annual income, but the right amount depends on your specific situation. This calculator takes a comprehensive approach: it adds up your family's financial needs (income replacement, mortgage, debts, education, funeral costs) and subtracts your existing resources (savings, existing insurance, spouse income contribution). The result is your coverage gap — the amount of additional life insurance you should consider.
How it works: Enter your income, debts, and existing coverage below. The chart breaks down your total needs vs. total resources so you can see where the gaps are. Save and compare different scenarios to find the right coverage level for your family.
Life Insurance Needs Calculator — How Much Coverage Do You Need?
Free life insurance needs calculator. Estimate coverage needed based on income replacement, debts, education costs, and existing resources.
Needs vs Resources Breakdown
Factors that affect your life insurance needs
- Income replacement: How many years of income would your family need to maintain their lifestyle?
- Outstanding debts: Mortgage, car loans, credit cards, and other debts that would need to be paid off.
- Education costs: The cost of college tuition and related expenses for each child.
- Existing resources: Current savings, existing life insurance policies, and your spouse's income all reduce the coverage gap.
- Funeral costs: End-of-life expenses including funeral, burial, and related costs.
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About this calculator
This life insurance needs calculator is provided for educational and illustrative purposes only. It is not a substitute for professional financial advice. Life insurance needs vary based on individual circumstances, including health, age, and financial goals. Consult a licensed insurance professional or financial advisor to determine the right coverage for your specific situation.