Life insurance calculator
Work out how much life insurance your family would need, based on your income, debts, children's education and what you already have.
Coverage to aim for
Your savings and existing cover may already be enough.
- Income to replace
- Mortgage
- Other debts
- Education
- Final expenses
- Savings and investments
- Existing life insurance
Rule of thumb (10× to 12× income):
Estimates only, for illustration.
How this calculator works
The calculator adds up what your family would need if you died, then takes away what you already have:
- Income to replace: your yearly income times the number of years your family would need it.
- Debts: your mortgage and other debts, so your family isn't left paying them.
- Children's education: an amount for each child.
- Final expenses: funeral and related costs.
- Minus your savings and investments, and any life insurance you already have.
The result is the amount of coverage to aim for. It also shows the common rule of thumb of 10 to 12 times your income, for comparison.
Choosing your numbers
- Years of income: many families choose 10 to 20 years, or until the youngest child turns 18 or 22.
- Education: college costs vary widely; use a figure that fits the kind of school you'd hope for.
- Stay-at-home parents need cover too. Instead of income, estimate what childcare and household help would cost.
Next steps
Once you have a number, compare term life quotes for that amount. Term life is usually the least expensive way to get a large amount of cover. See life insurance explained, and make sure your will and beneficiaries are up to date.
Common questions
It gives a sensible starting point, not an exact answer. Your real needs depend on things like your partner's income, Social Security survivor benefits, and how your family would want to live. Many people round up to allow for inflation and surprises.
You can, but remember it usually ends if you leave the job. Some people count only part of it, or none, so their family stays protected if their job changes.
Long enough to cover the years when others depend on your income, often until your youngest child is independent or your mortgage is paid off. Term life insurance lets you match the length to those needs.