Life Insurance Calculator

Comprehensive Life Insurance Calculator

Calculate your precise life insurance needs based on all financial factors

Personal Information

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Your Age

Spouse's Age

Retirement Age

Living Expenses

Annual Living Expenses

Funeral Expenses

Annual Taxes

Debt & Obligations

Mortgage Balance

Other Loan Balances

College Expenses

Income Sources

Your Annual Income

Spouse's Annual Income

Other Annual Income

Assets & Existing Coverage

Savings & Investments

Existing Life Insurance

Other Expenses

Insurance Needs Results

Recommended Coverage

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Total life insurance needed

Coverage Years

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Years until retirement

Income Replacement

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Of annual income

Detailed Coverage Breakdown

Component	Amount
Living Expenses	-
Funeral Expenses	-
Tax Obligations	-
Mortgage Payoff	-
Other Loan Payoffs	-
College Expenses	-
Other Expenses	-
Income Replacement	-
Existing Assets	-
Existing Coverage	-

Calculate to see insurance recommendation

Policy Types Comparison

Policy Type	Description	Pros	Cons
Term Life	Coverage for a specific period	Most affordable, simple	No cash value, expires
Whole Life	Permanent coverage with savings	Lifetime coverage, cash value	More expensive, complex
Universal Life	Flexible permanent coverage	Adjustable premiums, cash value	Requires management, costs

About Life Insurance

When You Need Life Insurance

• You have dependents who rely on your income

• You have significant debts (mortgage, loans)

• You want to cover funeral expenses

• You want to leave an inheritance

• You own a business with partners

• You want to cover children's education

Common Mistakes

• Underestimating coverage needs

• Choosing wrong policy type

• Not reviewing coverage regularly

• Focusing only on price

• Not considering inflation

• Delaying purchase (costs rise with age)

This calculator provides estimates only. Consult with a licensed insurance professional for personalized advice. Print Results

A Life Insurance Calculator helps determine how much coverage you need to protect your family’s financial future. It considers debts, income replacement, future expenses, and savings to recommend an appropriate policy amount.

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How a Life Insurance Calculator Works

Most calculators use the DIME formula (Debt, Income, Mortgage, Education) or Human Life Value (HLV) approach to estimate coverage needs:

1. DIME Method

$$\text{Coverage}=\text{Debts}+(\text{Income}\times \text{Years to Replace})+\text{Mortgage}+\text{Education Costs}$$

2. Human Life Value (HLV) Method

$$\text{Coverage}=\text{Annual Income}\times \text{Years Until Retirement}$$

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Key Inputs Required

Financial Obligations

✔ Outstanding Debts (Credit cards, loans)
✔ Mortgage Balance
✔ Future Education Costs (Kids' college)
✔ Final Expenses (Funeral, medical bills)

Income Protection

✔ Annual Income
✔ Years of Income Replacement Needed (Typically 5-10x salary)

Existing Coverage & Savings

✔ Current Life Insurance Policies
✔ Savings & Investments (Subtract from total needs)

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Example Calculation

Category	Amount
Debts	$50,000
Mortgage	$200,000
College Fund (2 kids)	$150,000
Income Replacement	$500,000
Total Needs	$900,000
Existing Policy	-$200,000
Savings	-$100,000
Recommended Coverage	$600,000

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Types of Life Insurance Policies

Policy Type	Best For	Pros & Cons
Term Life	Temporary needs (10-30 years)	✅ Affordable, simple ❌ No cash value
Whole Life	Lifetime coverage + savings	✅ Guaranteed payout ❌ Expensive
Universal Life	Flexible premiums/investment component	✅ Adjustable ❌ Complex fees

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When to Recalculate Your Needs

• Marriage/divorce

• New child

• Home purchase

• Significant income change

• Approaching retirement