Free tool · Protection
How much life insurance does your family need?
Add up what your family would need if your income stopped, subtract what is already in place, and see the gap. It takes about a minute, and nothing you type leaves this page.
Your estimate
$953,000
That is roughly 11.2 times your income. The common "10 times income" rule would say $850,000.
The math, in the open
How this is calculated
No black box. Every formula the tool uses is written out here, so you can check it yourself.
This calculator uses the expense method, the approach most planners start with:
- Income replacement: your annual income times the number of years your family would need it.
- Debts: your mortgage balance plus other debts, so nobody inherits a payment.
- Future costs: education for each child, plus final expenses.
- Less what you have: existing life insurance and savings your family could use.
Income replacement is not discounted. That keeps the math simple and assumes the interest your family could earn on the money is roughly offset by inflation. If your family would invest the benefit, the real need may be a little lower. If prices rise faster than the money earns, it may be higher.
Stay-at-home parents need coverage too. Use what it would cost to replace their work, such as childcare and household help, as the income figure.
How much life insurance do I need?
Enough to replace the income your family relies on for as long as they would need it, clear your debts, fund future costs such as education, and pay final expenses, less the coverage and savings you already have. This calculator adds those up for you.
Is 10 times my income enough?
It is a common starting point, but it ignores your debts, your children’s ages and what you already have. Two people with the same income can need very different amounts. Use the rule as a check, not as the answer.
Should I count life insurance from work?
Yes, but remember it usually ends when you leave the job, and it is often only one or two times salary. Many families keep a personal policy so coverage does not depend on an employer.
Does this tool give me a quote?
No. It estimates how much coverage you might need. What that coverage costs depends on your age, health, the type of policy and the insurer, which is what a strategy session works through.
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