Life Insurance Need Calculator
Calculate exactly how much life insurance you need based on income replacement, mortgage payoff, debts, and future education costs for your children.
Part of our Insurance Calculators collection.
Life Insurance Need Calculator
Free online calculator
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Income your family would need to replace
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Multiply by number of children
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Funeral, medical bills, legal fees
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How to Use This Calculator
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Enter your personal details and financial information.
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See the estimated cost or coverage need instantly.
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Adjust inputs to compare different scenarios.
How This is Calculated
DIME Method: Debt = All outstanding debts Income = Annual income × years to replace Mortgage = Outstanding balance Education = College funding per child Total Need = Income + Mortgage + Debt + Education + Final Expenses Coverage Gap = Total Need − Existing Coverage − Liquid Assets
Example Calculation
See your personalised estimate
Inputs
Result
Enter values above for your estimate
Results update as you enter your information.
Frequently Asked Questions
How much life insurance does the average person need?
A common rule of thumb is 10–12× your annual income. The DIME method (this calculator) gives a more precise answer by accounting for your actual debts, mortgage, and family situation. For a $75,000 income with typical debts and two children, coverage of $750,000–$1.2M is common.
Term vs whole life — which should I buy?
Term life is almost always the right choice for income replacement — it's 5–10× cheaper than whole life for the same coverage amount. Buy 20–30 year term to cover your working years. Whole life makes more sense for permanent needs like final expenses or estate planning.
Does my employer's group life insurance count?
Yes, but be cautious — employer coverage typically ends when you leave the job. Include it in existing coverage but consider personal coverage that travels with you.