Life Insurance Needs Calculator

The right amount depends on your income, debts, number of dependents, and existing assets. A common rule of thumb is 10–12 times your annual income, but a needs-based calculation — factoring in your mortgage, final expenses, college funding, and existing savings — gives a more accurate picture. This calculator uses that approach to give you a personalized estimate.

You should include your mortgage or future rent payments, car loans, credit card and personal debt, estimated funeral and final expenses, an emergency fund for your family, and any college funding you'd like to provide for your children. Together, these represent the immediate and long-term costs your policy would need to cover.

Life insurance provides financial protection for your loved ones if you pass away unexpectedly. It can help cover medical costs, final expenses, pay off a mortgage, fund your children's education, and replace your income so your family can maintain their standard of living. Without it, your family may face significant financial hardship at an already difficult time.

Existing assets include your current savings and investments (such as a 401k or brokerage accounts), any life insurance policies you already hold, expected Social Security survivor benefits, pension income, and any other regular income your survivors would receive. These reduce the gap that a new policy needs to fill.

Yes. If your spouse or partner earns income, that reduces the total income replacement your policy needs to provide. This calculator factors in your spouse's annual earnings along with Social Security survivor benefits and other income sources to calculate the net coverage gap.

If you have children and want to ensure they can attend college regardless of what happens to you, yes. Estimating a per-child college cost and multiplying by the number of children who will need funding gives you a realistic figure to add to your coverage needs.

You should revisit your coverage whenever a major life event occurs — getting married or divorced, having a child, buying a home, paying off significant debt, receiving an inheritance, or changing jobs. As your financial situation evolves, your coverage needs will change too. A good rule is to review your policy at least every three to five years.

No — this tool provides an educational estimate based on the information you enter. It is not financial or insurance advice. Coverage needs vary based on your unique circumstances, health, and goals. We recommend consulting a licensed financial professional or insurance advisor to make a final decision on the right policy for you.