Life Insurance Need Calculator

How much term coverage you should consider.

Annual income ($)

Years to replace

Other debts ($)

Mortgage balance ($)

Final expenses ($)

Education needed ($)

Existing savings & investments ($)

Coverage to consider

$1,155,000

14.4× your annual income

Breakdown

Income replacement (10 yrs)$800,000

Debt payoff$50,000

Mortgage payoff$250,000

Final expenses$15,000

Education fund$80,000

Less: existing savings−$40,000

Combines the income-replacement and DIME methods used by most financial planners. The 10× rule of thumb is shorthand and often underestimates need for younger families with mortgages and dependents. Term life (20-30 year level term) is usually the cheapest way to cover this; whole life is rarely cost-effective unless estate planning.

About

Combines income replacement (income × years to replace) and the DIME method (debts, mortgage, education, less existing assets). Get the coverage amount to consider for term life insurance.

How to use

Enter income, debts, mortgage.
Add education and savings.
Read coverage need.

FAQ

Term or whole life?+

For most working-age people, term insurance for 20-30 years at the right coverage is much cheaper than whole life. Whole life makes sense in narrow estate-planning scenarios; for income protection, term wins on price.