Life Insurance Needs Calculator
How much life insurance is enough? The 10×-income rule is the starting point — this calculator adds your debts and final expenses, subtracts existing coverage, and gives a number.
How this calculator works
The calculator multiplies your income by 10 (the standard income-replacement rule of thumb), adds your debts and final expenses, and subtracts what you already have. The result is a planning target — term insurance at this amount is usually surprisingly affordable, which is why under-insurance is mostly a planning failure, not a cost problem.
Frequently asked questions
Is 10× income the right multiple?
It is the most common starting point because it lets a family replace a decade of earnings while debts are cleared. Parents with young children or a large mortgage often want 12–15×; dual-income households without kids can often live with less. Recalculate after major life events — marriage, kids, a mortgage — because the right number moves.
Term or whole life?
Term life covers you for a set period (20–30 years) at a fraction of the cost — a healthy 35-year-old often pays under $40/month for $1M of 20-year term. Whole life costs 10–20× more and builds cash value, but the investment return is low and the premium is fixed for life. For pure income replacement, term plus investing the difference almost always wins.
Does my employer coverage count?
Yes, with caveats: group life through work is often 1× salary (too little on its own), and you lose it when you leave. Treat employer coverage as a bonus layer, not the plan — the coverage you control is the coverage you can count on.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.