We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.
Life insurance coverage calculator
Determine how much coverage you need to protect your family's financial future.
Like any other financial product, life insurance is a deeply personal decision, and the exact amount you’ll need will depend on your individual circumstances. If you have savings, investments or an inheritance to fall back on, you may want to curtail your coverage to take these things into consideration. Think of this calculator as a guide to help you find the right coverage for your unique situation.
How much coverage do I need
Generally, life insurance experts suggest a number between 5 and 10 times your annual salary to make sure you can cover all of your obligations should you pass away.
This life insurance coverage amount is just an estimate. Because everyone’s financial situation is different, you may want to increase or decrease your amount of coverage to meet your specific goals. Talk to a financial planner or adviser to learn more about how much life insurance coverage is best for your unique situation.
Protect your loved ones
This life insurance broker combines technology and the human touch to match you with a policy tailored to your needs.
X
Other factors to consider
Generally, your life insurance policy should cover the gap between fulfilling your long-term financial obligations — including things like a mortgage, student loans, credit card debt and your family’s ongoing living expenses. Because this calculator doesn’t account for your savings, investments and other assets, you may want to subtract your assets from the recommended coverage amount to get a more accurate estimate of your life insurance needs.
- Age. This applies to both you and your children. If your kids are younger, factor in the costs of college tuition should you die before they’ve completed their education. If you and your partner are nearing retirement and have children who are financially independent, your living expenses may not be as high as they once were.
- Medical bills. You’ll also want to keep in mind any medical payments your family will be left with as a direct result of your death. Unfortunately, dying doesn’t come cheap, so you may want to add in $15,000 to $20,000 extra to cover your funeral, burial and related costs.
- Inflation and potential taxes. With the rate of inflation averaging around 2% each year, the coverage you buy now won’t be worth as much in 20 or 30 years. And if you live in one of the six states that impose inheritance taxes — Iowa, Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania — you’ll want to account any taxes your family could be stuck with.
How would life insurance fit into my monthly budget?
| Monthly expenses | monthly Cost |
|---|---|
| Term life insurance | $15 – $30 |
| Dining out | $200 |
| Health insurance | $300 |
| Cell phone bill | $100 |
| Car insurance | $120 |
| Car payment | $250 |
| Alcohol | $50 |
| Gas | $80 |
| Internet | $80 |
| Student loans | $300 |
| Credit card bill | $100 |
Typical coverage amounts
Average life insurance coverage amounts range from $50,000 for a bare-bones policy all the way up to $5 million and beyond. For the majority of policies, providers offer coverage in multiples of $50,000 up to $1 million. When you’re young and healthy, the difference between adding an extra $50,000 or $100,000 in coverage to your policy can be low.
Use our calculator to learn a recommended coverage amount, and then factor in your assets and any other expenses unique to you and your family’s circumstances. After you’ve found a number you’re comfortable with, round up to the nearest $50,000 to get a typical coverage amount.
Bottom line
Now that you know how much coverage you’re looking for, compare life insurance providers to find a policy that ensures your family’s taken care of — no matter what happens in the future.
Compare life insurance providers
Read more on this topic
-
Choice Mutual life insurance broker review 2020 Compare final expense policies from over 20 carriers with the click of a button.
-
Voya Financial life insurance review 2020 Snag a convenient policy through your employer, and keep it even if you leave your job.
-
Best life insurance for people who play sports Check out these top five life insurance companies for athletes.
-
Consumer behavior: Life insurance 2020 Find out what goes through the mind of Americans' when they're purchasing a life insurance policy.
-
Best life insurance for millennials These 6 life insurance companies satisfy millennials’ insurance needs and cater to their buying preferences.
-
Best life insurance for people with high-risk hobbies in 2020 You don't have to cut out high-risk activities to find life insurance options that don’t break the bank.
-
Best life insurance for first-time homebuyers Protect your family and new home with a life insurance policy from these 5 top-rated companies.
-
Farmers Life Insurance review 2020 You may be able to secure a term, whole or universal life policy without undergoing a medical exam, but your approval isn't guaranteed.
-
Illinois Mutual life insurance review 2020 This insurer stands out for its standalone return of premium policies and flexible payment plans.
-
Best term life insurance companies Our experts round up the 5 best term life insurance companies.
Ask an Expert