Life Insurance Calculator: Get a Free Needs Estimate

Calculate Your Coverage Needs

Income
$
Years

How many years is your family relying on your annual income?

Existing Coverage
$
Advanced Calculator
Assets
$
Debt
$
Final Expenses
$
Children
$
Coverage Amount $0
Get My Free Quote Coverage Amount

How to Use Our Life Insurance Calculator

Our calculator provides you with an estimated life insurance coverage amount to help replace your income and provide financial security for your family in the event of your death.

To get started, we only require three fields:

  • Income: What's your yearly salary? Include any bonuses and other recurring income.
  • Years: How many years will your family need to replace your annual income?
  • Existing Coverage: How much coverage do you have in current life insurance policies?

Expanding the Advanced Calculator drop-down menu provides the ability to enter additional details for a more precise estimate.

  • Assets: How much do you have saved and invested? Include bank accounts, mutual funds, stocks and bonds, IRAs 401(k) accounts, college funds, emergency funds, etc.
  • Debt: How much do you currently owe? Include mortgage balance, home equity loans, credit card debts, car loans, taxes, and any other debt your family would need to pay off.
  • Final Expenses: What would be the approximate cost for your family to cover your funeral expenses? The average traditional funeral costs between $7,000 and $8,000 in the U.S.1
  • Children: How much will you need to cover education, child care costs, medical costs, and daily living expenses for all your children? Include primary and higher education costs.

Life Insurance Articles to Help You Make an Informed Decision

Considerations To Keep In Mind

When estimating coverage with our life insurance calculator, there are several important considerations to keep in mind to ensure you get an accurate estimate that reflects your needs and financial situation.

  1. Future Financial Goals: Think about future expenses that you want to cover, such as children's education, retirement savings for your spouse, or any other significant financial goals.
  2. Inflation: Consider the effect of inflation on future financial needs. The value of money decreases over time, so what seems like a substantial amount now might not suffice in the future.
  3. Policy Type and Term: Decide if you need term life insurance, which covers you for a specific period, or whole life insurance, which offers lifelong coverage and a cash value component. The choice will impact your coverage amount and premiums.
  4. Health and Age: Your health and age significantly affect your insurance premiums and coverage options. The younger and healthier you are when you buy life insurance, the more affordable your premiums will likely be.
  5. Spouse and Dependents: Consider whether your spouse works, how much they earn, and how many dependents rely on your income. This will influence the amount of coverage you need to ensure their lifestyle is maintained.
  6. Tax Implications: Understand the tax implications of your life insurance policy. While the death benefit is usually tax-free, other aspects, like cash value withdrawals from a whole-life policy, may have tax consequences.
  7. Review and Update Regularly: Life circumstances change (e.g., marriage, birth of a child, new mortgage), so it's crucial to review and update your coverage accordingly to ensure it continues to meet your needs.

By keeping these considerations in mind, you can more accurately estimate the right amount of life insurance coverage to protect your family's financial future.

The Bottom Line

It is essential to understand your life insurance requirements to help secure your family's financial future. Use our life insurance calculator to determine the appropriate coverage for your individual situation.

Ready to take your life insurance plan to the next level? Connect with an insurance professional to further tailor your life insurance plan to your needs. Start planning today for a secure tomorrow.

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Sources

  1. How Much Does A Funeral Cost? https://www.westernsouthern.com/life-insurance/how-much-does-a-funeral-cost.
IMPORTANT DISCLOSURES

This information is intended to serve as a basis for your conversation with a financial representative. Calculations are based on the information you provided.

These calculators are designed to be informational and educational tools only, and do not constitute investment advice. You should consider the counsel of a financial services professional before making any type of investment or financial decision. We also encourage you to review your investment strategy periodically as your financial circumstances change. This module is hypothetical and is provided for illustration purposes only. It is not indicative of the performance of any specific investment product or strategy. The members of Western &  Southern Financial Group, Inc. (WSFG) are not responsible for the consequences of any decisions or actions taken in reliance upon or as a result of the information provided by these tools.  Furthermore, WSFG is not responsible for any human or mechanical errors or omissions. Securities contain risk and will fluctuate with changes in market conditions.

Securities offered by Registered Representatives through W&S Brokerage Services, Inc., member FINRA/SIPC. All companies are members of Western and Southern Financial Group.