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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 be shopping for 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? It’s a common question, and the calculator below can help you get the answer.

  1. Debts to Cover
  2. Income to Replace
  3. Money for Education
  4. Funeral Costs
  5. Other Factors
  6. Your Results
Include all outstanding debts including mortgage, student loans, credit cards, car loans, a family business, etc.
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How much is your current outstanding debt?
($0 - $1,000,000)
$0
$1,000,000
Amount: $
Coverage amount so far:
$0
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Take into account all current outstanding debts
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Estimate how many years it will take to pay off debts
(0 - 30 Years)
0yrs
30yrs
Year(s):
Coverage amount so far:
$0
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Take into account the amount your family will need each year to get by without your contributions.
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Estimate the annual income (or money for an emergency fund) you would like to leave your loved ones
($0 - $1,000,000)
$0
$1,000,000
Amount: $
Coverage amount so far:
$0
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Take into consideration your age and the ages of those in household.
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How many years do you want the replacement income or emergency fund to last?
(0 - 25 Years)
0yrs
25yrs
Year(s):
Coverage amount so far:
$0
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Tuition can vary but the average cost is $40,000 for a public 4-year college to $140,000 or more for a private 4-year college
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Do you want funds to cover college tuition for children?
Coverage amount so far:
$0
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Tuition plus room & board for 4-year college can cost, on average, from $85,000 at a public college to over $194,000 for a private college.
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How much do you want to provide for higher education of children?
($0 - 1,000,000)
$0
$1,000,000
Amount: $
Coverage amount so far:
$0
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This will help determine how long you may need a life insurance policy to be in effect.
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Estimate how many years until your youngest child will graduate college?
(0 - 25 Years)
0yrs
25yrs
Year(s):
Coverage amount so far:
$0
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According to the National Funeral Directors Association, the average cost of a funeral is $8,755
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How much do you want spent on your funeral?
($0 - 50,000)
$0
$50,000
Amount: $
Coverage amount so far:
$0
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Think about your immediate family you'd wish to leave money to, as well as other entities, such as a charity, and include that amount here.
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Do you want to leave heirs additional money? Leave money to charity? How much?
($0 - 1,000,000)
$0
$1,000,000
Amount: $
Coverage amount so far:
$0
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Age 62 is the earliest age that a person can start receiving Social Security retirement benefits, however, full benefits may not be available until age 67.
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How many years until you plan to retire?
(0 - 31+ Years)
0yrs
31yrs
Year(s):
Coverage amount so far:
$0
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If you already have a policy in place, you may still need supplemental coverage for your needs. (Note: We'll subtract prior policy amount from our estimate of your current policy needs)
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How much life insurance do you already have?
($0 - $1,000,000)
$0
$1,000,000
Amount: $
Current Policy in-
Coverage amount so far:
$0
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Here is our assessment based on your answers. Get a quote to find how much this coverage will cost.
Your Results
Based on the information you provided, here is your estimate:
Type of Insurance:
Term Life Insurance and Whole Life Insurance
Your answers indicate that you need a combination of term life and whole life insurance policies.
No Life Insurance Needed
Term Life Insurance
$0
0 Years Policy
Whole Life Insurance
$0
Now that you know what life insurance coverage you need, take the next step to protect your family's future:
Startover
Disclaimer: Your coverage needs may be lower depending on your savings, assets and retirement funds. Your coverage need may be higher if you want to provide funds for your beneficiaries to pay estate taxes. The amount of life insurance coverage you need could be less or more depending on how the surviving spouse chooses to invest the death benefit, and whether the surviving spouse chooses to work. The information in this tool should not be interpreted as legal or financial advice, or as a recommendation to buy or forgo any insurance product.

How to use our life insurance calculator

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 life insurance quote estimates 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 your 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 quotes to find the best life insurance for your needs.

Sources:

Last updated: , by Leslie Kasperowicz