Life Insurance Calculator
Calculate how much life insurance coverage you need
Income Replacement
$
How long dependents need support
Financial Obligations
$
Mortgage, loans, etc.
$
College funding
$
Funeral, medical, legal
Existing Resources
$
Current policies
$
Savings, investments
Recommended Coverage
$1,000,000.00
Additional insurance needed
Coverage Gap
$988,811.85
Shortfall to cover
Needs Analysis
| Category | Amount |
|---|---|
| Income Replacement (10 years) | $773,811.85 |
| Debt Payoff | $250,000.00 |
| Children's Education | $100,000.00 |
| Final Expenses | $15,000.00 |
| Total Need | $1,138,811.85 |
| - Existing Coverage | $100,000.00 |
| - Liquid Assets | $50,000.00 |
| Coverage Gap | $988,811.85 |
Common Rules of Thumb
- 10x income: $750,000.00
- DIME method: Debts + Income + Mortgage + Education
- Human Life Value: Future earnings potential
Monthly Premium Estimate
Based on $1,000,000.00 20-year term
Age 30
$500/mo
Age 40
$800/mo
Age 50
$1500/mo
*Estimates for healthy non-smoker. Actual rates vary.
Types of Life Insurance
Term Life
Coverage for a specific period (10-30 years). Lower premiums, no cash value. Best for most families with temporary needs.
Whole/Permanent Life
Lifelong coverage with cash value component. Higher premiums. Consider if you need permanent coverage or estate planning.
When to Review Coverage
- Marriage or divorce
- Birth or adoption of a child
- Buying a home or taking on debt
- Significant income change
- Every 3-5 years as circumstances change