Where do these numbers come from?
- Instant answersResults update as you type.
- Private by designRuns in your browser. Nothing is sent.
- Share, print or citeCopy a link with your numbers.
The needs method
Coverage need = (income × years your family would rely on it) + debts + mortgage payoff + future education + final expenses − savings and investments − existing life insurance. It is more tailored than a multiple of income because it counts what you already have.
Worked example
| Item | Amount |
|---|---|
| Income $80,000 × 10 years | $800,000 |
| Debts | $20,000 |
| Mortgage balance | $250,000 |
| Education | $100,000 |
| Final expenses | $15,000 |
| Less savings | −$50,000 |
| Less existing coverage | −$100,000 |
| Coverage need | $1,035,000 |
Rules of thumb
A common shortcut is 10 times income. It ignores your mortgage and savings, which is why the calculator shows it beside the needs figure. Income replacement years usually run until the youngest child is independent or a spouse reaches retirement.
What this does not tell you
It does not price a policy. Premiums depend on age, health, tobacco use, term length and insurer, so get quotes. Inflation reduces what a fixed death benefit buys; some people add a margin or choose a longer term. This is an estimate, not insurance advice.
Sources and assumptions
Related
Frequently asked questions
How much life insurance do I need?
Add income you want to replace over the years your family needs it, plus debts, mortgage, education and final expenses, then subtract savings and existing coverage.
Is 10 times salary enough life insurance?
It is a reasonable starting point, but a needs calculation can be much higher (young children, big mortgage) or lower (large savings).
Does this calculator quote premiums?
No. It estimates the coverage amount only; premiums require quotes from insurers.