Life insurance calculator
If you’re not sure how to calculate how much life insurance coverage you need, you’re not alone. A life insurance calculator can help you determine the amount of coverage you should buy using basic information about your debts, income, dependents, and what expenses you need to cover with a life insurance policy.
How much life insurance do you need? Use the calculator below to find out.
- Debts to Cover
- Income to Replace
- Money for Education
- Funeral Costs
- Other Factors
- Your Results
How to use our life insurance calculator
A life insurance calculator helps you to make sure you're buying the right amount of coverage.
To calculate the right amount of life insurance for your needs, start by entering the amount of debt you currently have, and then move through each tab entering the requested information.
Although you may have to estimate some of the information, try to be as accurate as possible. When in doubt, err on the side of over-estimating. Here are a few statistics that can help:
The average cost of a funeral is just under $8,000.
The average cost of college education, tuition alone, is between $9,400 and $37,600 each year for a four-year undergraduate degree.
Out-of-pocket expenses for medical care in the last year of life average $9,530, but can be much higher with a diagnosis of dementia, cancer, or heart disease.
This calculator is designed to help you get a life insurance estimate for the amount of coverage you need; it’s not a life insurance cost calculator. However, once you know how much coverage you need, you can start comparing quotes from various life insurance companies to find the best rate.
How to calculate your life insurance premium
Calculating life insurance premiums isn’t simple. There are a lot of factors that go into how much you pay for life insurance. How much coverage you’re buying is just one of them. Then, there’s the type of policy you choose. If you’re comparing term vs. whole life insurance, you’ll find term life is more affordable. The longer the term, however, the more you’ll pay.
In addition, these factors affect the cost of life insurance:
Age and gender
Health
Family medical history
Lifestyle factors like smoking
Hobbies and occupations that are risky
Armed with a solid understanding of how much coverage you need, you can start shopping around and comparing life insurance quotes to find the best life insurance for your needs.
Sources:
- NFDA News Releases: 2021 NFDA General Price List
- National Centre for Education Statistics: Fast Fact
- Federal Reserve Bank of Richmond: End-of-Life Medical Expenses