Life Insurance Needs Calculator

"How much life insurance do I need?" has a real answer, add up what your family would owe and need to replace, then subtract what you already have.

Reading This Tool

How To Use This Calculator

This uses the DIME method: Debt, Income replacement, Mortgage, and Education, a standard needs-based framework.

Income replacement is valued as a present-value annuity, not a simple multiple of salary, because money received sooner is worth more than money received in year fifteen. Subtract whatever coverage and liquid savings already exist, and what's left is the actual gap a new policy would need to fill.

Your Inputs

Outstanding Debts (Mortgage, Loans, Credit Cards) $350,000

Annual Income To Replace $75,000

Years Of Income To Replace 15 yrs

Discount Rate For Income Stream 4.0%

Future Education Costs (Children) $80,000

Final Expenses (Funeral, Estate Settlement) $15,000

Existing Coverage & Liquid Savings $100,000

Income replacement assumes the lump sum is invested and drawn down over the chosen period at the discount rate entered, a more realistic picture than a flat multiple of annual salary.

Coverage Gap

Recommended Additional Coverage

Total Need (DIME)

Income Replacement, Present Value

What Makes Up The Need, vs. What You Already Have

Debt Income Replacement Education Final Expenses

This is an educational needs estimate, not insurance or financial advice. It doesn't account for existing employer group life coverage terms, health-based insurability, or the cost difference between term and permanent policies, a licensed insurance advisor can walk through those tradeoffs.

Building this into a full estate and succession plan?

See The Probate Fee Calculator →