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Calcimator

Life Insurance Needs Calculator

Determine how much life insurance coverage you need based on income replacement, debts, and financial goals.

Inputs

$
$
$
$
$
$
$

Results

Recommended Coverage

$1,365,000.00

≈ 3 average U.S. homes

Income Replacement Needed$1,125,000.00
Total Financial Needs$1,515,000.00
Existing Resources$150,000.00
How to Use This Calculator
  1. Enter your annual income and the number of years to replace it for your family.
  2. Input all outstanding debts (mortgage, auto loans, credit cards).
  3. Enter estimated final expenses and education funding goals.
  4. Subtract existing savings and current life insurance from the total need.
  5. Review the Coverage Gap — the additional insurance you should consider purchasing.

How the result changes with Annual Income

Annual IncomeRecommended Coverage
$100,000.00$1,740,000.00
$350,000.00$5,490,000.00
$650,000.00$9,990,000.00
$900,000.00$13,740,000.00

What each input means

Annual Income
Your current gross annual income that your family depends on.
Years to Replace Income
Number of years your family would need income replacement, typically until youngest child is independent.
Outstanding Debts
Total of all non-mortgage debts: car loans, credit cards, student loans, personal loans.
Mortgage Balance
Remaining balance on your home mortgage.
Children Education Fund
Total amount you want set aside for children's college education.
Final Expenses
Funeral, burial, and estate settlement costs. Average is $10,000-$15,000.
Existing Life Insurance
Any current life insurance coverage including employer-provided group life.
Liquid Assets
Savings, investments, and other liquid assets available to your family.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Annual Income = 75000, Years to Replace Income = 15, Outstanding Debts = 25000, Mortgage Balance = 250000 = 8 input(s) provided
  2. Calculate Recommended Coverage
    Recommended Coverage
    1365000 = $1,365,000
  3. Calculate Income Replacement Needed
    Income Replacement Needed
    1125000 = $1,125,000
  4. Calculate Total Financial Needs
    Total Financial Needs
    1515000 = $1,515,000

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