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, a suggestion of how long your policy should last, and an estimate of your monthly premiums.
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.
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 that estimate to account for each child’s education.
→ Learn more about how long your life insurance coverage should last
How much does the life insurance that you need cost?
To set 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.
→ Learn more about how much is life insurance
How are life insurance premiums determined?
The six main factors that determine your premiums are:
The type of policy
The term length
The coverage amount
Your age
Your health, and
Any riders or additional features you add to your policy
With traditional life policies, premiums stay the same for the duration of the policy.
Life insurance coverage vs. cost
You can use both our coverage calculator to determine how much life insurance you need, and our cost calculator to estimate how much that coverage will cost per month. 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.
→ Learn more about how life insurance underwriting works
How to get the best life insurance rates
Frequently asked questions
How do you know how much life insurance you need?
Calculate your financial obligations — including annual income, monthly bills, and any current or future family expenses like a mortgage or your children’s college tuition — and then subtract your liquid assets, including savings and existing life insurance like employer-sponsored group policies. The result is the amount of life insurance you need.
How long should my life insurance coverage last?
Your term life insurance policy should last as long as your financial obligations and outstanding debts. If you have children, for example, you may want to consider a 20-year policy at a minimum. But a 30-year policy could be a good option for parents of young children or new homebuyers, as this is the length of a traditional mortgage.
How much does life insurance cost?
Shoppers in their 30s can pay $30 per month or less for a $500,000 term life policy that lasts 20 years. Life insurance rates are based on your policy, age, gender, and health.
How does the life insurance company I choose affect my calculated cost?
Some insurance companies might offer you cheaper rates for the amount of coverage and term length you need than others, based on your profile and needs, so shopping around across multiple insurers is the key to finding the right policy at an affordable cost.
How do I find the cheapest life insurance?
The best way to find the cheapest life insurance rates is to work with an independent broker, who can help you compare quotes across multiple insurance companies. At Policygenius, our agents can help you compare quotes from different insurance companies and apply with the insurer that offers you the right coverage at a price that works for you.
