Life Insurance Calculator: How Much Coverage Do You Need?
Step 1: What your family would need
Step 2: What you already have
This is a starting point, not a quote. Your real number depends on your goals, your family, and your budget.
Runs in your browser. Nothing you type is collected, saved, or sent anywhere.
How the Calculator Works
It adds up what your family would need, then subtracts what you already have. A common way agents remember the main pieces is DIME:
-
Debts
Credit cards, car loans, student loans.
-
Income
What your family would need to replace, and for how many years.
-
Mortgage
What’s left on your home loan.
-
Education
College or other future costs for your kids.
We add two things DIME leaves out: childcare and household help (the big one for stay-at-home parents) and final expenses.
Two Examples
These are made-up examples to show the math, not quotes.
| Example 1: Young family | Example 2: Empty nesters | |
|---|---|---|
| Income × years | $70,000 × 18 = $1,260,000 | $90,000 × 5 = $450,000 |
| Mortgage | $320,000 | $90,000 |
| Other debts | $25,000 | $0 |
| Childcare | $15,000 × 10 = $150,000 | $0 |
| College | $100,000 | $0 |
| Final expenses | $15,000 | $15,000 |
| Minus savings | −$40,000 | −$300,000 |
| Minus existing coverage | −$100,000 (through work) | −$50,000 |
| Estimated need | About $1,730,000 | About $205,000 |
| 10x income check | $700,000 | $900,000 |
See how the 10x rule misses in both directions? It’s way too low for the young family and too high for the empty nesters.
What to Do With Your Number
Take it to a licensed agent or insurer for quotes, and compare at least a few companies. Prices for the same coverage can vary a lot.
What Will Your Coverage Cost?
No one can give you an honest price without a few details, and anyone who does is guessing. Price depends mostly on:
- Your age (younger is cheaper)
- Your health and tobacco use
- Term or permanent. Term generally gives you the most coverage for your money. Permanent, cash value coverage costs more for the same amount.
- The term length, if you choose term
- The insurance company. Prices for similar coverage can vary a lot, so it’s worth comparing several.
Common Mistakes When Choosing a Coverage Amount
- 1
Leaving out a stay-at-home parent. Their work would cost real money to replace.
- 2
Counting only coverage through work. It usually ends when you leave the job.
- 3
Forgetting the mortgage. It’s often the biggest single bill a family faces.
- 4
Buying more than you can keep paying. A policy you cancel protects no one.
- 5
Never rechecking. New baby, new house, paid-off loans? Run the calculator again.
FAQs
How much life insurance do I need?
Enough to replace your income for as long as your family needs it, pay off your mortgage and debts, and cover childcare, college, and final expenses, minus what you already have. The calculator above does the math.
Is $500,000 of life insurance enough?
It depends on your income, debts, and how long your family would need support. Enter your numbers above to see how $500,000 compares.
Is $1,000,000 enough life insurance?
For some families it's more than enough. For a young family with a big mortgage, it may fall short, like Example 1 above.
How much does $100,000, $300,000, or $500,000 of life insurance cost per month?
It depends on your age, health, tobacco use, and whether it's term or permanent coverage. Term is usually far cheaper for the same amount. A licensed agent or insurer can quote your exact amount.
Is the 10 times income rule accurate?
It's a rough gut check. It ignores your mortgage, kids, savings, and existing coverage, so it can be too high or too low.
Do I need life insurance if I'm a stay-at-home parent?
Often, yes. Your family would have to pay for the childcare and household work you do now.
Does life insurance through work count?
Yes, include it in the calculator. But it usually ends if you leave the job, so many people don't rely on it alone.
