How much life insurance do I need? This life insurance needs calculator estimates coverage based on income replacement, mortgage and other debts, education funds, final expenses, and what you already have saved or insured — a starting point for family life insurance planning, not professional advice.
How to use this calculator
- Enter annual income and how many years of income you want to replace.
- Add mortgage balance, other debts, education needs, and final expenses.
- Enter existing savings and current life insurance coverage.
- Review total need and recommended additional coverage.
Formula
Total need = (Annual income × Replacement years) + Mortgage + Other debts + Education fund + Final expenses. Additional coverage = Total need − Existing savings − Existing coverage.
Example
A household earning $85,000/year seeking 10 years of income replacement, $280,000 mortgage, $80,000 for education, and $15,000 final expenses may need about $1.18 million before subtracting savings and existing policies.
Frequently asked questions
- How many years of income should I replace?
- Many families use 5–15 years depending on children, spouse income, and debts. Adjust based on your situation and talk with a licensed professional.
- Should I include my spouse's income?
- This calculator focuses on one income stream. If your spouse also needs coverage, run separate estimates or adjust income inputs.