How much life insurance do I need?
A common approach is to estimate the money your dependents may need for income replacement, debts, future goals, and other protection needs, then subtract existing savings and current life insurance coverage.
Life Insurance Coverage Calculator
Estimate how much protection your family may need based on income, debts, goals, savings, and existing coverage.
Estimate Your Coverage Need
Educational coverage-needs estimate only. No quotes, premiums, or insurer recommendations.
How This Calculator Works
This calculator adds income replacement, debts, future goals, other protection needs, and an optional buffer, then subtracts current savings and existing coverage.
Example Scenario
If a person earns 75,000 per year and wants 10 years of income support, the income replacement need is 750,000. If they also have debts, future education goals, and other protection needs, the calculator adds those needs and then subtracts existing savings and life insurance coverage.
Educational estimate only: Actual coverage needs may vary by family situation, policy terms, inflation, health, and personal circumstances.
Life Insurance Coverage FAQ
Is this a life insurance premium calculator?
No. This calculator estimates coverage need only. It does not estimate policy premiums or insurance quotes.
What is income replacement?
Income replacement estimates how much money dependents may need if your income is no longer available. A simple method is annual income multiplied by the number of years support is needed.
Should I include my home loan or mortgage?
Yes, if you want life insurance to help cover the outstanding home loan or mortgage balance.
Should I subtract existing savings?
Yes. Savings, investments, and existing life insurance can reduce the additional coverage needed.
How often should I review life insurance coverage?
Review coverage after major life changes such as marriage, having children, buying a home, income changes, or paying off major debts.