Figuring out how much life insurance to buy depends on your annual income and how long your family will need to rely on this income. You can quickly determine your coverage amount by answering three simple questions. For a more detailed analysis, try our advanced calculator, which takes into consideration your assets, debt, final expenses, childcare and education costs.
Our life insurance needs calculator is designed to quickly answer the question of “How much life insurance do you need?” A thorough life insurance needs analysis assesses both immediate and long-term funding needs for your family in the event of your death. What immediate final expenses (e.g., funeral costs, medical bills, etc.) do you anticipate? How much money will your family need to sustain their standard of living and cover long-term expenses (e.g., monthly mortgage, child care, college education, etc.)? A life insurance policy death benefit provides a replacement income to help cover your family’s financial needs in your absence.
Now that you have an initial coverage amount, you’ve taken the first step toward greater financial security for you and your family. However, several other important factors – your stage in life, the size of your family, your plans for wealth transfer – are important to think about as you decide what kind of life insurance you want. Depending on your current station in life, you may want more temporary coverage for a shorter period of time or permanent coverage for your entire lifetime. Premiums that remain fixed over time, guaranteed lifetime coverage, convertibility and the potential to build cash value or earn dividends are some of the different kinds of life insurance benefits to consider.