Life Insurance Needs Calculator

Answer a few simple questions to estimate the amount of life insurance coverage you need to take care of your family.

This is an estimate only. For a complete assessment, contact a financial professional.

Question 1 of 7
How much annual income would you like to provide, if you were no longer here?

Think about how much money your family will need to cover daily living expenses. This is typically 60-80% of your individual post-tax income. Don’t include college savings, childcare or any debts that you would like to pay off immediately (such as your mortgage), since those are covered in other questions.

How many years should income be provided after you’re gone?

Think about how long you’ll need the additional income to support you and your family. If you have children, that might be when your youngest child graduates high school or college, or longer.

How much debt would you like to pay off immediately?

Consider things like outstanding mortgage, private student loans, credit card balances and car loans.

How much would you like to provide for childcare?

Consider how much it will cost for childcare services in your area and how long you’ll need them. If you’re a stay-at-home parent, you’ll likely need to pay for childcare services if you are no longer around to watch your children. Keep in mind that childcare needs will change as your children get older. While young children may need full-time childcare, it may no longer be needed as they get older and can stay home on their own while you’re at work.

Not sure how much you would need? Check out Care.com to estimate childcare costs in your area.

How many children require college funding?

Add children that you would like to provide college funding for, or click Next to skip this step.

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How much would you like to set aside for an emergency fund?

If you don’t already have one, it’s a good idea to set aside at least three to six months’ worth of expenses in your emergency fund.

How much personal life insurance do you already have?

Do not include any life insurance policies you may have through work, since these policies will likely be eliminated when your job changes.

Your estimated life insurance need:
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Income replacement This is the present value of future income needs. The calculation assumes an interest rate of 4% and inflation rate of 2%. $ 0
Debt to pay off $ 0
Childcare $ 0
College fund Projected college costs include tuition, fees, room and board. The amounts being used are for the average 4-year education provided by The College Board. $ 0
Emergency fund $ 0
Burial cost This may include uncovered medical costs, funeral expenses, and final estate settlement costs. Note: If your estate is over $1,500,000 your final expenses may be much higher due to federal and state estate or inheritance taxes. $ 0
Current insurance ($ 0)
   
Total need
$ 0
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Based on the information you provided your estimated life insurance need is: $ How this was calculated: Income replacement $ Debt to pay off $ Childcare $ College fund $ Emergency fund $ Burial cost $ Current insurance $ Now that you have an idea of your life insurance need, take the next step and get the coverage you need. Visit lifehappens.org for more information on finding a financial professional or company to work with.

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