Life Insurance Need
Calculator
Results
- Gross coverage need
- 1,165,000
- Total offsets
- 150,000
- Additional coverage needed
- 1,015,000
Insurance and risk results
| Gross coverage need | 1,165,000 |
| Total offsets | 150,000 |
| Additional coverage needed | 1,015,000 |
formula-map diagram
- Gross coverage need
- 1,165,000
- Total offsets
- 150,000
- Additional coverage needed
- 1,015,000
Coverage and risk relationship
Formula
Need = (income × years + final expenses) − (assets + existing coverage)= 1165000
Note
This is generic arithmetic using the amounts, rates and factors you entered. It is not an insurance quote, a policy interpretation, or financial advice. No insurer rate, jurisdiction rule, statutory limit or policy wording is built in. Real premiums and payouts depend on underwriting, your policy's exact terms and exclusions, and applicable regulation; confirm with your insurer or a licensed professional.
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See all →Frequently asked questions
What does this calculator actually estimate?+
It estimates the lump sum of life insurance needed so your dependents could replace lost income, pay off debts, cover final expenses, and fund future goals like education if you died today. It is a needs-based estimate, not a fixed rule of thumb.
Why isn't a simple multiple of my salary (e.g. 10x income) enough?+
Income multiples ignore your actual debts, savings, number of dependents, and years until they're self-sufficient. Two people earning the same salary can need very different coverage depending on their mortgage balance and children's ages.
What happens if I already have savings or existing coverage?+
Existing savings, investments, and current life insurance should be subtracted from the total need, since they already offset part of the gap. Leaving them out will overstate how much new coverage you need to buy.
Does the result account for inflation over the years?+
The calculator projects income replacement over a chosen number of years, so a longer horizon or higher assumed growth rate increases the total. If inflation isn't modeled explicitly, consider rounding up or shortening the payout horizon assumption.
My result seems very high — is that normal?+
Yes, income replacement over 15-20+ years plus a mortgage payoff commonly produces totals of $500,000-$2,000,000+. It reflects the true cost of replacing decades of income, not just paying off current debt.