Life Insurance Calculator

Find out if your current coverage is enough to protect your dependents' financial future

Coverage Needed
$1.1M
total life insurance needed
Coverage Gap
$933K
additional coverage needed
Income Replacement
$798K
PV of 20 yrs at 80%
Est. Monthly Premium
$233
for $933K extra coverage
Your Details
35 yrs
yrs
$80K
80%
%
20 yrs
yrs
5%
%
Debts & Obligations
$250K
$20K
$15K
Dependents & Assets
2
$50K
$50K
$200K
Coverage Need Over Time

How your insurance need decreases as debts are paid and income replacement shrinks

Coverage Needs Breakdown
Income replacement (20 yrs @ 80%)$797,581
Mortgage balance$250,000
Other debts$20,000
Education fund (2 children)$100,000
Final expenses$15,000
Less: existing assets$50,000
Total Coverage Needed$1,132,581
Your existing coverage$200,000
Coverage Gap-$932,581
You May Be Underinsured

Based on your inputs, you have a coverage gap of $932,581. Consider purchasing additional term life insurance to close this gap.

The estimated monthly premium for a 20-year term policy to cover the gap is approximately $233/month (rough estimate — actual rates vary by health and insurer).

Coverage Ratio
18%
of total need covered
Rule of Thumb
$800K
10× income shortcut

How the Life Insurance Calculator works

Life insurance replaces your economic contribution if you die while others depend on it. This calculator estimates the coverage your family would need using the DIME framework — Debt, Income replacement, Mortgage, Education — and compares it to what you already have through work or existing policies.

The right number isn't a fixed multiple of salary; it's whatever fills the gap between what your dependents would need and the assets and coverage already in place. For most families, that gap is largest when children are young and shrinks toward zero as savings grow and obligations fall away.

The formula
Coverage ≈ Debt + (Income × years) + Mortgage + Education costs − existing assets
  • DIME: Debt, Income replacement, Mortgage, Education
  • Income years — commonly until youngest child's independence

Tips to get the most out of it

  • Term life for a defined period (20–30 years) covers most family needs at a fraction of permanent insurance premiums.
  • Employer coverage (often 1–2× salary) rarely suffices and usually isn't portable if you change jobs.
  • A non-earning caregiver has real economic value too — childcare replacement costs justify coverage on both partners.

Frequently asked questions

How much life insurance do I need?

Quick heuristics say 10–12× income, but the DIME method is more honest: add debts, the mortgage balance, income replacement for the years your family needs it, and future education costs, then subtract savings and existing coverage. This calculator runs that math with your numbers.

Term or whole life insurance?

For pure income protection, level term is dramatically cheaper — often 5–10× less premium for the same death benefit — and matches the years dependents actually rely on you. Permanent policies bundle lifelong coverage with an investment component; they suit specific estate and business situations more than typical family protection needs.

Is my employer's life insurance enough?

Rarely. Group coverage of 1–2× salary is far below the 10×+ most families with young children need, and it typically ends when you leave the job — possibly when you're older or less healthy. Treat it as a supplement to an individually owned policy, not a substitute.

When can I drop life insurance?

When no one would face financial hardship from losing your income: kids independent, mortgage retired, and savings sufficient for a surviving partner. Many people simply let term policies expire at that point rather than renewing.

From the Knowledge Base

How Much Life Insurance Do You Need? The DIME Method

Rules of thumb like 10x your salary miss what actually matters. The DIME method calculates coverage from your real debts, income, mortgage, and education costs.

Read the guide