🛡️
Life Insurance Calculator
Calculate how much life insurance coverage you need
Your Situation
$
Gross annual income
$
Will continue if you pass
Debts to Cover
$
$
Car loans, credit cards, etc.
Future Expenses
$
Total for all children
$
Funeral, medical, estate
Existing Resources
$
Current coverage amount
$
Liquid assets family can use
Coverage Recommendation
Enter your details
Calculate your coverage needs
Life Insurance Guide
Types of Life Insurance
- Term Life: Coverage for specific period (10-30 years), most affordable
- Whole Life: Permanent coverage with cash value, much more expensive
- Universal Life: Flexible premium and death benefit, builds cash value
- Variable Life: Investment component with market risk
How Much Coverage Do You Need?
- DIME Method: Debt + Income replacement + Mortgage + Education
- Income Multiple: 10-15x annual income as rule of thumb
- Needs Analysis: Calculate specific financial obligations
Factors Affecting Premiums
- Age (younger = cheaper)
- Health status and medical history
- Smoking status (non-smokers pay much less)
- Coverage amount and term length
- Occupation and hobbies
When to Buy Life Insurance
- When others depend on your income
- When you have significant debts
- When you have young children
- When your spouse would struggle financially without you
When You May Not Need It
- No dependents and minimal debt
- Sufficient savings to cover final expenses
- Spouse is financially independent
- Children are grown and self-sufficient
Term vs Whole Life
- Term life is usually the better choice for most families
- Buy term and invest the premium difference
- Whole life can make sense for estate planning or high net worth
- Avoid cash value policies sold as investments
Disclaimer: This calculator is for informational purposes only and should not be considered financial, tax, or legal advice. Results are estimates based on the information provided and current tax laws. Consult a qualified professional for advice specific to your situation.
Need More Powerful Financial Tools?
MyMoneyTrends offers comprehensive financial planning with personalized insights.
Try MyMoneyTrends Free