Life Insurance Needs Calculator

Estimate how much coverage could be needed to replace income, pay down major obligations, and leave survivors with a workable financial cushion.

Scope: an educational coverage-gap estimate based on income support, debts, education funding, final expenses, and existing resources. This does not model premiums, policy riders, underwriting, or insurer-specific product design.

Income support

Estimate the income survivors may need to replace for a period of time.

Annual gross income

Income replacement targetOften modeled between 60% and 80% of gross income.Years of income support

Other annual income survivors could rely onExamples: salary that would remain, pension income, or dependable benefits.

Family and household costs

Add costs that would still need to be covered if one income disappeared.

Childcare or household support per yearYears of childcare or support

Education funding goal

Debts and final costs

Estimate the obligations survivors might want to pay off or avoid carrying.

Mortgage balanceOther debt to coverFinal expenses

Existing resources

Subtract assets or current coverage that survivors could actually use.

Savings available to survivorsExisting life insurance coverage

Recommended additional coverage

$800,000

This is the rounded midpoint estimate after subtracting existing savings and current life insurance.

Low

$725,000

Mid

$800,000

High

$875,000

Estimate breakdown

Income replacement (70% for 10 years)$700,000

Less other survivor income-$0

Childcare and household support$60,000

Mortgage and other debt$265,000

Education funding$50,000

Final expenses$15,000

Estimated total need$1,090,000

Less existing savings and coverage-$300,000

Coverage gap$790,000

Notes

This estimate focuses on income replacement, debts, education funding, final expenses, and existing resources. It does not model premiums, underwriting, taxes, or insurer-specific policy features.