Life Insurance Calculator
Calculate how much life insurance coverage you need using the income replacement method. Factor in debts, dependents, and future expenses to determine the right coverage amount.
Frequently Asked Questions
How much life insurance do I need?
A common rule of thumb is 10-12 times your annual income, but a more accurate calculation considers your outstanding debts (mortgage, student loans), future education costs for children, number of years your family needs income replacement, and existing savings and coverage.
What is the income replacement method?
The income replacement method calculates coverage by multiplying your annual income by the number of years your family would need financial support. For example, if you earn $75,000 and want 15 years of replacement, you need at least $1,125,000 in coverage, plus debts and education costs.
Should both spouses have life insurance?
Yes. Even if one spouse does not earn income, their contributions (childcare, household management) have significant economic value. A stay-at-home parent should have enough coverage to pay for those services, typically $250,000-$500,000.