How to use our life insurance calculator
To calculate how much life insurance you need, you’ll provide information about your current and future financial obligations, your liquid assets, and your coverage needs. All you have to do is enter these details in the calculator’s fields.
Date of birth: Your age will help us assess how long your coverage should last and how much you might pay for it. In general, the younger you are, the more coverage you’ll need — but the cheaper your rates may be.
Annual income: Helping your loved ones replace your income after your death is one of the main reasons to get life insurance. Knowing how much you make every year can help us get a clear sense of the death benefit amount you need.
Spouse or partner: Our calculator can help estimate how much coverage your spouse or partner would need, too. Even if they don’t have an income, we can recommend an insurance policy that covers the cost of their contributions to the household, such as child care.
Number of children under age 18: Your coverage amount should take into account the cost of raising kids, if you have them or plan to in the future. You can even include an additional amount to cover your children’s college costs.
Total household debt: Any debts that your loved ones would be responsible for in your absence can be covered by your life insurance policy. That’s why it’s important to include them in your coverage calculations.
Total household savings: These are funds that your beneficiaries could have access to in your absence to cover their financial responsibilities. It’s important to take them into account when calculating your life insurance needs because you want to pay only for the coverage amount you truly need.
What do your life insurance calculator results mean for you?
Our life insurance coverage calculator offers you an estimate of how much coverage you need, and a suggestion of how long your policy should last.
You’ll have two options to consider based on your budget and coverage needs.
Optimal coverage. This option recommends a policy long enough and a coverage amount large enough to pay for your family’s main expenses as well as your present and future financial obligations — whether that’s paying off a mortgage or getting your children through college.
Coverage on a budget. This option recommends a policy that you can comfortably pay for year after year — even if it doesn’t offer all the coverage you need. You can opt for a shorter term to lower your premium, and speak with an agent who can walk you through different options to make sure you’re getting the best coverage for your budget.
Keep in mind that this calculator will only offer you an instant estimate of how much coverage you need. If you want to know the cost of your premiums, we’ve got you covered, too. Once you know how much coverage you’ll need, click on Get my quotes to continue your life insurance shopping journey and connect with an agent, or use our cost calculator further below on this page.
At Policygenius, our experts are licensed in all 50 states and can walk you through the entire life insurance buying process while offering transparent, unbiased advice.
How can you manually calculate how much life insurance you need?
One common rule of thumb is to multiply your annual income by 10 to 15, especially if you have dependents, to get an estimate for how much coverage you need.
For example, if you make $100,000 per year, you likely need around $1 million in life insurance coverage.
Some people choose to add an extra $100,000 per child to account for each child’s education.
You can also use the DIME formula, which stands for Debts, Income, Mortgage, and Education. To calculate your life insurance needs using this method, you tally up the following:
Your income multiplied by the number of years your family will depend on it
The amount left on your mortgage
The cost of your children’s education
Your tally of your outstanding debts, separate from your mortgage, should include co-signed debt like car loans and student loans that your co-signer would become responsible for when you die. You can also include personal debt that might be taken out of your savings, like credit card debt.
You should also factor in income growth and the number of working years you have left.
How much does the life insurance you need cost?
To determine your rates, life insurance companies estimate your risk based on your personal profile, including your age, gender, health, and other lifestyle factors.
Use our cost calculator below to get an estimate of your monthly premiums.
Which factors affect the cost of your life insurance?
The six main factors that determine your premiums are:
The type of policy
The term length
The coverage amount
Any riders or additional features you add to your policy
With traditional life policies, premiums stay the same for the duration of the policy.
What is the difference between life insurance quotes & your final rates?
When it comes to cost, keep in mind that your life insurance quotes are the pricing estimates you’ll get after providing your basic information — but your final rates will be confirmed only after the insurance company reviews your application and determines how risky you are to insure.