This estimates total coverage need; term is often the most cost-effective for income protection.

Should I include Social Security benefits?

Not here. If you expect survivor benefits, you can reduce income replacement years or amount manually.

No. Use higher income/expense estimates or longer replacement years to be conservative.

What about employer life insurance?

Include any group coverage in existing coverage. It may be limited to employment.

Do investments count?

Yes—add liquid savings/investments to available savings if they’d offset needs.

finance calculator

Life Insurance Needs Calculator

Estimate how much life insurance you need by totaling income replacement, debts, education costs, and final expenses minus existing coverage and savings.

Results

Income replacement total: $900,000
Total needs before offsets: $1,120,000
Recommended coverage need: $970,000

How to use this calculator

Enter annual income and how many years you want to replace.
Add debts to clear, education funding, and final expenses.
Enter existing life insurance and savings you’d use.
Review the recommended coverage need.

Inputs explained

Income replacement years: How long dependents would need income support (e.g., until kids finish school).
Debts/education: Mortgage, loans, and education funds you want covered.
Existing coverage/savings: Offsets that reduce how much new coverage you need.

How it works

Income replacement = annual income × years to replace.

Gross need = income replacement + debts + education + final expenses.

Net need = gross need − existing coverage − available savings (floored at zero).

Formula

Income replacement = Income × Years
Gross need = Income replacement + Debts + Education + Final expenses
Net need = Gross need − Existing coverage − Savings

When to use it

Sizing a term policy for family protection.
Re-evaluating coverage after life events (marriage, kids, home purchase).
Comparing policy quotes to a needs-based target.

Tips & cautions

Use conservative income replacement (e.g., 10–15 years) if kids are young or income is variable.
Include mortgage and major debts so survivors aren’t burdened.
Revisit coverage as income, debts, and savings change.
Simplified needs analysis; does not model investment returns, inflation, or Social Security benefits.
Ignores taxes and survivor income; adjust inputs to reflect other income sources.

Worked examples

$90k income × 10 years, $120k debts, $80k education, $20k final, $100k coverage, $50k savings

Income replacement = $900k
Gross need = $1,120,000
Net need ≈ $970,000

$120k income × 12 years, $200k debts, $100k education, $15k final, $250k coverage, $75k savings

Income replacement = $1,440,000
Gross need = $1,755,000
Net need ≈ $1,430,000

Deep dive

This life insurance needs calculator totals income replacement, debts, education, and final expenses minus current coverage and savings to estimate the coverage you need.

Use it to size a term policy or check if your current coverage is enough after life changes.

FAQs

Term or permanent?: This estimates total coverage need; term is often the most cost-effective for income protection.
Should I include Social Security benefits?: Not here. If you expect survivor benefits, you can reduce income replacement years or amount manually.
Inflation included?: No. Use higher income/expense estimates or longer replacement years to be conservative.
What about employer life insurance?: Include any group coverage in existing coverage. It may be limited to employment.
Do investments count?: Yes—add liquid savings/investments to available savings if they’d offset needs.

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For estimation only. Coverage needs depend on detailed cash flow, taxes, benefits, and investment assumptions. Consult a licensed professional for personalized advice.