Use this life insurance calculator to estimate how much coverage your family would need if you died. It adds up the income they’d lose, your debts, future college costs and final expenses, then subtracts your savings and any coverage you already have.
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How your number adds up
Coverage by term length
| Years of income | Income replacement | Coverage needed |
|---|
Estimates only. Income replacement assumes the payout is invested at the return you enter while withdrawals rise with inflation. College and other costs are in today's dollars. This is not a quote; talk to a licensed agent about your situation.
How much life insurance do you need?
The calculator uses a needs-based approach, which looks at what your family would actually have to pay for:
- Income replacement: the share of your income your family would need each year, for as many years as they’d rely on it.
- Debts: your mortgage balance plus car loans, student loans and credit cards.
- College costs: what you’d like to set aside for each child’s education.
- Final expenses: funeral, medical bills and estate costs.
From that total, it subtracts savings your family could use and any life insurance you already have, including coverage through work.
Example: a parent earning $75,000
The calculator’s default example is a parent who earns $75,000 and wants to replace 80% of that income for 20 years. They have a $250,000 mortgage, $15,000 in other debts and two children, and they’d like to set aside $50,000 per child for college. They have $30,000 in savings and $75,000 of life insurance through work.
| Need | Amount |
|---|---|
| Income replacement ($60,000 a year for 20 years) | $1,005,781 |
| Mortgage and other debts | $265,000 |
| College for two children | $100,000 |
| Funeral and final expenses | $15,000 |
| Total needs | $1,385,781 |
| Minus savings and current coverage | −$105,000 |
| Coverage needed | $1,280,781 |
Rounded up, that’s a $1.3 million, 20-year term policy. Replacing 70% of income instead of 80% lowers the need to about $1.2 million.
Twenty years of $60,000 is $1.2 million, but the calculator needs only about $1 million for income replacement. That’s because it assumes the payout is invested at 5% while withdrawals rise 3% a year with inflation. With no investment growth, your coverage need would rise to about $1,475,000. You can change both rates under Assumptions.
Rules of thumb vs. a needs-based estimate
- 10 times your income: simple, but it ignores your debts, children and savings. For the example above, it suggests $750,000, well short of what the family would need.
- The DIME method adds up Debt, Income (yearly income times years needed), Mortgage and Education. It doesn’t subtract savings or assume any investment growth, so it tends to run high. For the example, it suggests about $1.9 million.
A needs-based estimate like this calculator’s falls in between and reflects your own situation, which is why many financial planners prefer it.
What to enter for college and final expenses
Average published tuition and fees at public four-year colleges were $11,950 a year for in-state students in 2025-26, or about $47,800 over four years, according to the College Board. Private nonprofit four-year colleges averaged $45,000 a year. These figures don’t include room and board.
The median cost of a funeral with a viewing and burial was $8,300 in 2023, according to the National Funeral Directors Association. Many people set aside $15,000 or more to also cover medical bills, legal fees and other final costs.
Term vs. whole life insurance
- Term life covers you for a set period, such as 10, 20 or 30 years, and is usually the most affordable way to get a large amount of coverage. It’s a good fit for needs that end, like raising children or paying off a mortgage.
- Permanent life, such as whole or universal life, lasts your whole life and builds cash value, but costs much more for the same coverage. It can make sense for lifelong needs like estate planning or a dependent who will always need support.
Many people buy a term policy that lasts until their youngest child is independent or their mortgage is paid off. The calculator’s table shows how your coverage need changes with the length of the term.
Many households are underinsured
According to LIMRA and Life Happens’ 2026 Insurance Barometer Study, 52% of Americans own life insurance, and about 92 million adults say they need coverage or more of it. Roughly three in four people overestimate what life insurance costs. Healthy young adults can often get a large term policy for less than they expect, so it’s worth getting quotes.
Workplace life insurance is a good start, but it’s often only one or two times your salary, and you usually lose it if you change jobs.
Frequently asked questions
How much life insurance do I need?
Add up the income your family would need for as many years as they’d rely on it, your debts, future college costs and final expenses, then subtract your savings and existing coverage. For a parent earning $75,000 with a mortgage and two children, that can be well over $1 million.
Is 10 times my income enough life insurance?
It’s a quick starting point, but it ignores your debts, children and savings. If you have a mortgage or young children, a needs-based estimate is often higher than 10 times your income.
How long should my term life policy last?
Choose a term that lasts until your family no longer depends on your income, such as when your youngest child finishes college or your mortgage is paid off. Common terms are 10, 20 and 30 years.
Should I count my workplace life insurance?
Yes, include it in current coverage, but remember it usually ends if you leave your job and is often only one or two times your salary.
Do stay-at-home parents need life insurance?
Often, yes. A stay-at-home parent may not earn income, but the family would have to pay for childcare and household help. Enter those yearly costs as the income to replace.
This calculator provides estimates for educational purposes only and is not insurance or financial advice. Sources: College Board: Trends in College Pricing; National Funeral Directors Association: 2023 funeral costs; LIMRA and Life Happens: 2026 Insurance Barometer Study.