Quick Life Insurance Calculator | How Much Coverage Do I Need?
Answering the question how much life insurance do I need, down to the exact penny, is probably not going to happen.
But the honest truth is that:
You don’t need to be that exact; in-fact, using our quick life insurance calculator takes away most of the hard work and can give you a strong idea of how much term life insurance you need.
How Much Life Insurance Do I Need In 2025?
Life insurance isn’t a one-size-fits-all type of product; however, to figure out how much life insurance you need, multiply your annual income by 10x to 20x. This shows you how many years your family could live on your income if paid as a lump sum. For example, $50,000 × 10 = $500,000 provides 10 years of income replacement. Simply Insurance recommends at least 20x your income if you can afford it.
Use Our Simply Insurance Quick Life Insurance Calculator
Our Simple Life Insurance Calculator lets you estimate your coverage needs, calculate premiums, and compare policy options.
1. Start
2. Expenses
3. College
4. Income
5. Savings
6. Spouse
7. Result
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Life Insurance Needs
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Disclosures & Assumptions
This interactive calculator is a self-help tool and is not intended to provide financial advice or product recommendations. The results and explanations generated by this calculator are based upon, and will vary due to, your input and certain assumptions made by us. All projections are hypothetical in nature, do not reflect actual results, and are not guarantees of future results. Simply Insurance will assume no liability for the use of or reliance on this calculator. For a more accurate and detailed analysis specific to your circumstances, we encourage you to contact a qualified financial professional.
The information provided is not written or intended as specific tax or legal advice. Zion Financial LLC, d/b/a Simply Insurance™, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.
Simply Insurance™ is an online insurance agency and does not issue any insurance products. Our address is 3333 Peachtree Road NE, Suite 150 Atlanta GA 30326
Estimate your family’s expenses in case of your death
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Estimate your family’s expenses for education
Add College Funding
College funding: Total projected college costs (tuition plus all other costs such as room and board, books, etc.), less current funds in the child’s name. The tuition amount being used is for the average 4-year education and is provided by The College Board, which is $158,072 for private institutions and $71,440 for public institutions.
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Total annual income your family would need if you died today
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Savings and current life insurance
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Assuming your spouse would work following your death
Number of years expected to work
This is going to be the number of years your spouse expects to work after you have passed away, this will help determine how much more coverage you may need.
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Your need for life insurance:
Should you die, the financial impact on your dependents is the loss of your income as well as the immediate expenses associated with your death. The death benefit offered through life insurance serves as replacement income for a period of time to help your family build a more financially secure future.
Please be sure to enter a value in all fields to process the calculation. If a field is not used, please enter 0. Note: only numeric values will be accepted. Do not use special characters such as $ or commas.
Life Insurance Calculator Based On Salary (Single Income)
Recommended Coverage (15x Income)
How Much Life Insurance Do I Need On A Household Income?
Recommended Coverage (15x Income)
How Much Life Insurance Do I Need By Median Income?
20x Coverage (Recommended)
Disclosure: The most recent update to median income figures in the United States was released in September 2024, covering data to 2023.
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How To Calculate Life Insurance Needs
Following the above examples, go ahead and figure out what your total income is and what your current and future expenses could be. Now that we have the full picture lets look at each individual part of the equation to figure out how much coverage you should purchase.
Your Annual Income
Most advisors recommend purchasing 10 times your income; however, I always recommend buying at least 20 times your annual salary if you can afford it.
Your Current Expenses
Adding up your current expenses is going to be the next step, and I recommend adding everything you can think of to your expense list such as:
Annual UtilitiesYour MortgageAuto LoansCredit Card BillsAnnual Food BillStudent LoansMedical BillsTraveling Expenses etc.
Your Future Expenses
This is going to be the toughest area to account for since our plans won’t always work out the way we expect them to work. The most significant and most important future expense I can think of is money to cover your kid’s college or to cover their daycare expenses.
This is also a good time to think about generational wealth and what you want your legacy to be.
According to Travis Hornsby of Student Loan Planner, Americans owe at least $2 Trillion in student loans. This means that student loans will continue to be a significant debt and expense for future generations to come and I think it is a smart Idea to add an additional $100,000 in coverage for each child that you have.
Final Assessment:
Now that we know how to figure out the amount of life insurance you need it’s always best to check out a few term life insurance rates by age.
LIFE INSURANCE WHERE YOU LIVE
Term Life insurance by state.
With a Life Insurance policy you can take care of your family the right way.
Should anything happen to you, you’ll want to leave your loved ones a financial nest egg for their wellbeing.
How Long Does Term Life Insurance Last?
When it comes to a term life insurance policy you are given a few options for coverage term lengths, and each choice can work for specific situations:
10 Year Term – Best For Young Adults
The 10 year term option is excellent for young adults who will be in a better financial situation within that time period. I have found that most of my customers in their early 20’s choose this option because of its great price and honestly most of them aren’t thinking past the next 30 minute’s let alone the next 10 years.
15 Year Term – Great For Growing Families
At the 15 year term option we are in the middle range of pricing as well as the middle of the road as far as life situations. Your kids will probably be 15 years older if you have any and your debts have been decreased by 15 years if you have been paying them. This option is great for someone with a growing family.
20 Year Term – Best Life Insurance Term Length
The 20 year term option from my experience is going to be the best of both worlds when it comes to both monthly premium and length of coverage. If you have children most of them will be either going into being 18 years old or young adulthood. Your car loans will definitely be paid off by then, and you would only have 10 years left to pay off your mortgage if you have one.
30 Year Term – Best For Long Term Savings & Coverage
The 30 year term option is the most expensive option when it comes to life insurance. It is going to give you the most extended length of coverage, and over time it will also give you the most savings because your rate will be locked in for 30 years.
At What Age Does Term Life Insurance End?
Term life insurance policies provide coverage for a specified period, typically ranging from 10 to 30 years. The duration of these policies often aligns with significant life events that introduce financial responsibilities. Below is a chart illustrating common life events, the average age they occur, corresponding term lengths, and the age at which the policy would end:
When Does Term Life Insurance End Chart
Average Age of Occurrence
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Taking Action
Now that you know how to calculate how much life insurance you need and what the best term length option will be for your specific situation, it’s time to get some life insurance quotes. There is no reason to wait on getting coverage click on any of the above buttons to get started.
Frequently Asked Questions
What is the rule of thumb for life insurance?
You will probably hear the rule of thumb for life insurance is 10 times your annual income; however, I have found that going for 15 to 20 times your income leaves your family more cash.
How much life insurance is enough?
Figuring out how much life insurance is enough is all about determining your financial needs and your current familial situation. If you have a mortgage for $250,000 then of course you will probably need at least $500,000 in coverage to cover the mortgage and still leave your family in a strong financial position.
How are life insurance costs calculated?
The cost of life insurance is calculated on a rates per thousand basis, based on age ranges and coverage amounts. For example, if you are 23 years old and your rate per thousand for up to $100,000 is .32 cents and you wanted $75,000 in coverage. Then multiply the number of thousands which would be 75 by .32 cents and that would give you a monthly premium of $24.00 per month.
Is life insurance based on income?
Yes; the amount of Life insurance you can apply for is based on income, most life insurance companies allow you to only purchase up to 30 times your annual earned income. They do this to make sure you can afford the policy and that you aren’t purchasing substantially more coverage than you are worth.
