Life Insurance Calculator

Ensuring your loved ones are financially secure is essential. Life insurance provides a safety net, covering expenses like funerals and mortgage payments during tough times. Our free calculator makes it easy to estimate the right amount of coverage in just a few steps.

When using our life insurance calculator, keep these key points in mind

Be realistic about your needs: include debts, income replacement and future expenses (education, childcare).
Don't forget savings: subtract existing savings and investments to avoid over-insuring.
Choose a realistic term length: match policy length to your responsibilities (mortgage years left, children's independence).
Adjust for inflation: ensure your coverage accounts for rising costs over time.
Consider lifestyle and health: premiums vary based on habits, medical history and location.

A calculator guides you, but speaking with an advisor can provide personalized advice.

What is a life insurance calculator?

A life insurance calculator estimates how much coverage your family may need if you were no longer there to provide income. It considers final expenses, debts, household living costs over a chosen term, then subtracts current income and assets to avoid over-insuring.

How to calculate how much life insurance you need

coverage = (death_costs + debts + subsistence_costs × years) − (goods + all_revenus)

Steps to use the calculator

Enter your estimated end-of-life expenses (funeral, legal fees).
Enter total debts (mortgage, car loans, credit cards).
Enter annual household spending (spouse, children, other dependents).
Enter annual household income and the value of your assets (property, investments).
Choose the number of years you want coverage to last (e.g., until mortgage is paid or kids are independent).

Example (Antonia): Final expenses $8,000 + mortgage $260,000 + annual costs $65,000 × 10 − (assets $200,000 + income $60,000) ≈ $710,000 recommended coverage.

How do life insurance companies calculate premiums?

Premiums vary by age, health, smoking status, coverage amount, term length and location. Term policies typically cost less than permanent policies. Women often pay 10–20% less than men; smokers pay more than non-smokers.

Example: Two 36-year-old twins—one non-smoker might pay around $150/year while a smoker could pay $300+/year for similar coverage.

How long should your term be?

Dependents: Cover until children or spouse are financially independent.
Debt: Consider remaining years on your mortgage or major loans.
Savings & business: Keep coverage until your savings or business can sustain your family's needs.

Reassess needs regularly as your finances and family change.

Life insurance FAQs

Do I need life insurance?

If someone depends on your income or you have significant debts, life insurance can help cover funeral costs, repay loans and replace income for your family.

How much life insurance should I get?

A common rule is 7–10× your annual income, but a personalized estimate using this calculator is better because it includes your debts, expenses, assets and term.

What term length should I choose?

Match your policy term to major financial responsibilities, such as years left on your mortgage or until children become financially independent.

How are premiums determined?

Premiums vary by age, health, smoking status, coverage amount and term. Women typically pay 10–20% less than men; smokers pay more than non-smokers.