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Life Insurance Calculator
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Life Insurance Needs Calculator
Answer a few quick questions to estimate how much life insurance you may need.
Estimated Life Insurance Need:
$0.00
🧭 How to Use This Life Insurance Needs Calculator (Step-by-Step)
- Enter Your Age
👤 Helps estimate how long you’ll need coverage and may impact your life expectancy assumptions. - Enter Your Annual Income
💵 The calculator uses this to estimate how much income your loved ones would need to replace. - Choose How Many Years to Replace Your Income
📆 This might be until your children are grown, your spouse reaches retirement, or your mortgage is paid off. - Enter Your Current Savings & Investments
💼 These are subtracted from the total need — so you’re not over-insuring. - Add Any Outstanding Debt
🧾 This includes mortgage, student loans, credit cards — anything your family would be responsible for if you passed away. - Estimate Final Expenses
⚰️ Funeral costs, medical bills, and legal fees can be a burden without proper coverage. - Set Your Education Fund Goal
🎓 Want to leave money to cover college for your kids? Add it here. - Click “Calculate”
✅ You’ll instantly see how much life insurance you may need, plus a CTA to compare quotes.
💡 Life Insurance Planning Tips
✔️ Choose term life first
It’s the most cost-effective way to protect your family, especially if you’re under age 50.
✔️ Don’t overestimate coverage
Too much insurance = higher premiums. This calculator helps you find a practical amount.
✔️ Re-evaluate every few years
Life changes — like marriage, kids, home buying — mean your insurance needs will too.
✔️ Consider adding riders
Optional add-ons like disability waivers or child protection can add value to your policy.
✔️ Get multiple quotes
Life insurance rates vary a lot by provider — it pays to compare!
| Feature | Term Life Insurance | Whole Life Insurance |
|---|---|---|
| Coverage Length | 10, 20, or 30 years (fixed) | Lifetime (as long as premiums are paid) |
| Cost | 💲 Low monthly premiums | 💲💲💲 Higher premiums |
| Payout Type | Pays death benefit if you die during the term | Pays death benefit whenever you die |
| Cash Value | ❌ None | ✅ Builds tax-deferred savings over time |
| Best For | Families, new parents, mortgage protection | Wealth building, estate planning, long-term needs |
| Can Be Converted | ✅ Some policies allow conversion to permanent coverage | N/A |
| Borrow From Policy? | ❌ No | ✅ Yes — loans and withdrawals available |
| Simplicity | ✅ Easy to understand and compare | ❌ More complex — includes investment component |
| Flexibility | 🔁 Renew or reapply after term ends | 🔒 Locked in for life unless surrendered or canceled |
🧠 Quick Tip:
Start with term life to lock in low rates while you’re younger.
Consider converting to whole life later if you want long-term estate or wealth planning.
💬 Frequently Asked Questions (FAQ)
How much life insurance do I really need?
It depends on your income, debts, family structure, and goals. This tool gives a personalized estimate based on your inputs.
What does life insurance cover?
Life insurance provides a tax-free payout to your beneficiaries. It can cover:
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Lost income
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Mortgage or rent
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Childcare and education
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Funeral expenses
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Outstanding debts
Does this calculator account for inflation or investment returns?
This version offers a simple static model. For long-term planning, consider working with a licensed financial advisor.
What’s the difference between term and whole life insurance?
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Term life is temporary and affordable (e.g., 20 or 30 years).
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Whole life lasts your entire life but costs more.
Is life insurance taxable?
No. In most cases, life insurance payouts are not taxed.
📘 Life Insurance Glossary of Terms
Beneficiary
👤 The person or people who receive the life insurance payout when the policyholder dies.
Coverage Amount (aka Death Benefit)
💰 The total amount of money paid to your beneficiary if you pass away during the coverage period.
Premium
💳 The amount you pay (monthly or annually) to keep your life insurance policy active.
Term Life Insurance
📆 A policy that lasts for a specific period (e.g., 10, 20, or 30 years). It pays out only if the policyholder dies during that term.
Whole Life Insurance
🏦 A policy that covers your entire lifetime and includes a savings (cash value) component that grows over time.
Rider
➕ An optional add-on to your policy, such as a disability waiver, child coverage, or accelerated death benefit.
Underwriting
🩺 The process where the insurance company assesses your health and risk level to set your premium.
Cash Value
💼 A savings feature in permanent (whole) life policies. You can borrow against it or sometimes withdraw it while still alive.
Convertibility
🔄 The option to convert a term life policy into a permanent one without a new medical exam.
📊 Real-World Examples
🧑💼 Example 1: Young Family, Modest Income
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Age: 32
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Income: $65,000
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Years to Replace: 20
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Debt: $150,000 mortgage
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Final Expenses: $15,000
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Education Goal: $60,000
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Savings: $10,000
✅ Recommended Coverage: ~$1.455 million
👵 Example 2: Pre-Retiree With No Debt
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Age: 58
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Income: $90,000
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Years to Replace: 10
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Debt: $0
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Final Expenses: $20,000
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Education Goal: $0
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Savings: $300,000
✅ Recommended Coverage: ~$620,000
*National Savings Rate Average as published by FDIC