Your gross yearly income before taxes
How many years your family would need support — typically until youngest child is 18–22
Children, spouse, or others who rely on your income
Used to estimate how long dependents need support
Outstanding amount owed on your home
Car loans, student loans, credit cards, personal loans
Funeral, burial, and end-of-life costs — typically $15,000–$25,000
Average 4-year public college runs ~$110,000 total in 2026
Total death benefit from any current policies
Liquid savings, 401k, IRAs your family could access
If your spouse works, their income partially offsets your need
Used to estimate term length and premium ranges
Want a Free Insurance Review?
A licensed agent can walk you through the right coverage for your family's specific situation — no obligation required.
Licensed Insurance Agent · No obligation
Term vs. Permanent — Which Is Right for You?
🔄 Review every 3–5 years
Life insurance needs change with life events — marriage, new children, paying off the mortgage, or a spouse returning to work. Your coverage today may be too much or too little tomorrow.
💼 Group coverage has limits
Employer-provided life insurance typically covers 1–2x your salary — far less than most families need. And it disappears when you change jobs. It should supplement, not replace, a personal policy.
⏰ Buy it while you're healthy
Life insurance premiums are based on your age and health at the time of application. A 40-year-old in good health pays significantly less than a 50-year-old with health conditions for the same coverage.
🏥 Consider the unexpected
Most people think about death but not disability. If you became unable to work, your family's need for income replacement doesn't go away — disability insurance covers that gap.
Ready to Find the Right Policy?
This calculator gives you a starting point. A free review looks at your full picture — health, budget, goals — and shows you exactly what coverage makes sense for your family.
Licensed Insurance Agent · No obligation
How Much Life Insurance Do You Actually Need?
The DIME method
This calculator uses a version of the DIME method — Debt, Income replacement, Mortgage, and Education — a standard approach financial professionals use to estimate coverage needs. It adds up what your family would need to pay off debts, replace your income for a set number of years, cover the remaining mortgage, and fund children's education, then subtracts existing savings and coverage.
Income replacement, not income match
A common rule of thumb is 10–15 times your annual income, but that's a starting point, not a formula. The right multiple depends on how many years your family would need support, whether a spouse also earns income, and how old your children are. A newborn's family needs a longer runway than a family whose kids are about to finish college.
Don't forget the mortgage
Many people size their life insurance around income replacement alone and forget that a paid-off mortgage is one of the biggest gifts you can leave a surviving spouse. Removing that monthly payment can be the difference between a family staying in their home or needing to move.
Term vs. permanent coverage
Term life insurance covers you for a set period (often 10–30 years) at a lower cost, and is usually the right fit for replacing income during working years. Permanent life insurance (whole or universal life) lasts your entire life and builds cash value, but costs significantly more per dollar of coverage. Most families use term insurance to cover the years their kids are financially dependent.
Frequently Asked Questions
Is 10 times my income really enough?
It depends entirely on your situation. Ten times income is a common shorthand, but it doesn't account for existing debt, a mortgage balance, young children who'll need years of support, or a stay-at-home spouse who would need to re-enter the workforce. This calculator factors in those specifics rather than relying on a single multiple.
Do I need life insurance if I don't have kids?
Possibly, depending on your debts and who depends on your income. If you have a mortgage, co-signed loans, or a spouse or partner who relies on your income, life insurance can still make sense even without children. If you have no dependents and no shared debt, your need may be minimal.
Should I get life insurance through my employer instead?
Employer-provided group life insurance is a helpful supplement, but it usually isn't enough on its own — typical employer coverage is 1–2 times your salary, well below what most families need. It also generally doesn't transfer if you leave the job. Many people use employer coverage alongside an individual term policy rather than relying on it exclusively.
How much does term life insurance actually cost?
Cost depends on your age, health, coverage amount, and term length, and varies significantly by individual. A healthy person in their 30s or 40s often pays a modest monthly premium for a substantial 20-year term policy. The only way to know your actual cost is through underwriting with a specific insurer — this calculator estimates how much coverage you need, not what it will cost.
More Free Medicare & Retirement Tools
IRMAA Calculator
Find out if your income triggers Medicare premium surcharges in 2026 and exactly how much extra you may owe.
Medicare Advantage vs. Supplement
Answer 6 questions to find out which Medicare plan type fits your health, doctors, and budget.
Social Security Break-Even
Find the optimal age to claim Social Security and see the lifetime dollar difference between claiming early or late.
Long-Term Care Cost Estimator
See what assisted living and nursing home care costs in NY, FL & MA — and how to protect your savings.