Life insurance calculator
Answer what you can and leave the rest blank. It takes about two minutes, and nothing you type leaves this page.
You’d need about
| Paying things off | |
|---|---|
| College | |
| Income | |
| Minus savings and coverage you have | |
| Coverage you’d need |
This is an estimate, not a quote or financial advice. Your real number depends on your health, your budget and what your family would actually spend.
Compare term life quotesAnswering the question how much life insurance do I need, down to the exact penny, is probably not going to happen.
But the honest truth is that:
You don’t need to be that exact; in-fact, using our quick life insurance calculator takes away most of the hard work and can give you a strong idea of how much term life insurance you need.
Quick Life Insurance Calculator: How Much Coverage Do I Need?
Multiply your annual income by 10 to 20 times to find a solid starting point, and aim for 20x if your budget allows it.
Life insurance isn’t a one-size-fits-all type of product; however, to figure out how much life insurance you need, multiply your annual income by 10x to 20x. This shows you how many years your family could live on your income if paid as a lump sum. For example, $50,000 × 10 = $500,000 provides 10 years of income replacement. Simply Insurance recommends at least 20x your income if you can afford it.
Use Our Simply Insurance Quick Life Insurance Calculator
The quick life insurance calculator at the top of this page adds up what your family would need if something happened to you: paying off the mortgage and your debts, college for your kids, and the income they’d lose, minus what you’ve already saved and any coverage you already have. Leave anything that doesn’t apply blank. It runs in your browser, so nothing you type gets sent anywhere.
Life Insurance Calculator Based On Salary (Single Income)
| Income Bracket | Annual Salary Range | Recommended Coverage (15x Income) |
|---|---|---|
| Lower-income | Less than $35,000 | Up to $ 525,000 |
| Middle-income | $35,000 to $90,000 | $525,000 to $1,350,000 |
| Upper-income | Greater than $90,000 | More than $1,350,000 |
How Much Life Insurance Do I Need On A Household Income?
| Income Bracket | Annual Household Income | Recommended Coverage (15x Income) |
|---|---|---|
| Lower-income | Less than $56,600 | Up to $849,000 |
| Middle-income | $56,600 to $169,800 | $849,000 to $2,547,000 |
| Upper-income | Greater than $169,800 | More than $2,547,000 |
How Much Life Insurance Do I Need By Median Income?
| Type | Median Income (2025) | 15x Coverage | 20x Coverage (Recommended) |
|---|---|---|---|
| Single Person | $48,060 | $720,900 | $961,200 |
| Household | $80,610 | $1,209,150 | $1,612,200 |
| Disclosure: The most recent update to median income figures in the United States was released in September 2024, covering data to 2023. |
How To Calculate Life Insurance Needs
Add up your total income, then estimate your current and future expenses. Those two numbers together show you exactly how much life insurance coverage you should buy.
Following the above examples, go ahead and figure out what your total income is and what your current and future expenses could be. Now that we have the full picture lets look at each individual part of the equation to figure out how much coverage you should purchase.
Your Annual Income
Most advisors recommend purchasing 10 times your income; however, I always recommend buying at least 20 times your annual salary if you can afford it.
Your Current Expenses
Adding up your current expenses is going to be the next step, and I recommend adding everything you can think of to your expense list such as:
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Annual Utilities
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Your Mortgage
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Auto Loans
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Credit Card Bills
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Annual Food Bill
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Student Loans
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Medical Bills
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Traveling Expenses etc.
Your Future Expenses
This is going to be the toughest area to account for since our plans won’t always work out the way we expect them to work. The most significant and most important future expense I can think of is money to cover your kid’s college or to cover their daycare expenses.
This is also a good time to think about Honest Sagicor Life Insurance Review From A Licensed Agent! and what you want your legacy to be.
According to Travis Hornsby of Student Loan Planner, Americans owe at least $2 Trillion in student loans. This means that student loans will continue to be a significant debt and expense for future generations to come and I think it is a smart Idea to add an additional $100,000 in coverage for each child that you have.
Final Assessment:
Now that we know how to figure out the amount of life insurance you need it’s always best to check out a few term life insurance rates by age.
Taking Action
Now that you know how to calculate how much life insurance you need and what the best term length option will be for your specific situation, it’s time to get some life insurance quotes. There is no reason to wait on getting coverage click on any of the above buttons to get started.
Frequently Asked Questions
What is the rule of thumb for life insurance?
You will probably hear the rule of thumb for life insurance is 10 times your annual income; however, I have found that going for 15 to 20 times your income leaves your family more cash.
How much life insurance is enough?
Figuring out how much life insurance is enough is all about determining your financial needs and your current familial situation. If you have a mortgage for $250,000 then of course you will probably need at least $500,000 in coverage to cover the mortgage and still leave your family in a strong financial position.
How are life insurance costs calculated?
The cost of life insurance is calculated on a rates per thousand basis, based on age ranges and coverage amounts. For example, if you are 23 years old and your rate per thousand for up to $100,000 is .32 cents and you wanted $75,000 in coverage. Then multiply the number of thousands which would be 75 by .32 cents and that would give you a monthly premium of $24.00 per month.
Is life insurance based on income?
Yes; the amount of Life insurance you can apply for is based on income, most life insurance companies allow you to only purchase up to 30 times your annual earned income. They do this to make sure you can afford the policy and that you aren’t purchasing substantially more coverage than you are worth.
How Long Does Term Life Insurance Last?
When it comes to a term life insurance policy you are given a few options for coverage term lengths, and each choice can work for specific situations:
10 Year Term – Best For Young Adults
The 10 year term option is excellent for young adults who will be in a better financial situation within that time period. I have found that most of my customers in their early 20’s choose this option because of its great price and honestly most of them aren’t thinking past the next 30 minute’s let alone the next 10 years.
15 Year Term – Great For Growing Families
At the 15 year term option we are in the middle range of pricing as well as the middle of the road as far as life situations. Your kids will probably be 15 years older if you have any and your debts have been decreased by 15 years if you have been paying them. This option is great for someone with a growing family.
20 Year Term – Best Life Insurance Term Length
The 20 year term option from my experience is going to be the best of both worlds when it comes to both monthly premium and length of coverage. If you have children most of them will be either going into being 18 years old or young adulthood. Your car loans will definitely be paid off by then, and you would only have 10 years left to pay off your mortgage if you have one.
30 Year Term – Best For Long Term Savings & Coverage
The 30 year term option is the most expensive option when it comes to life insurance. It is going to give you the most extended length of coverage, and over time it will also give you the most savings because your rate will be locked in for 30 years.
At What Age Does Term Life Insurance End?
Term life insurance ends whenever your chosen term expires, typically 10 to 30 years after you buy it, so the ending age depends entirely on when you start.
Term life insurance policies provide coverage for a specified period, typically ranging from 10 to 30 years. The duration of these policies often aligns with significant life events that introduce financial responsibilities. Below is a chart illustrating common life events, the average age they occur, corresponding term lengths, and the age at which the policy would end:
When Does Term Life Insurance End Chart
| Life Event | Average Age of Occurrence | Typical Term Length | Policy End Age |
|---|---|---|---|
| Getting Married | 30 years old | 20 years | 50 years |
| Having First Child | 31 years old | 20 years | 51 years |
| Buying First Home | 33 years old | 30 years | 63 years |
| Divorce | 40 years old | 20 years | 60 years |
| Youngest Child’s Birth | 35 years old | 20 years | 55 years |
| Starting a Business | 38 years old | 15 years | 53 years |
Key Findings:
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Getting Married: Many individuals choose a 20-year term policy upon marriage to ensure financial protection during the early years of partnership and potential child-rearing.
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Having First Child: A 20-year term policy initiated at the birth of a first child can provide coverage until the child reaches adulthood, securing funds for education and upbringing.
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Buying First Home: Purchasing a home often involves a 30-year mortgage; a 30-year term policy can cover the mortgage duration, protecting against the risk of unpaid debt.
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Divorce: After a divorce, a 20-year term policy can ensure financial obligations such as alimony or child support are met.
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Youngest Child’s Birth: Initiating a 20-year term policy at the birth of the youngest child can provide financial security until they become financially independent.
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Starting a Business: Entrepreneurs may opt for a 15-year term policy to safeguard against business-related debts and ensure business continuity during the critical initial years.