Life Insurance Calculator

How much life insurance do I need?

Life insurance helps replace your income and cover debts and expenses if you die. A common approach is to add: (1) income replacement for a number of years (e.g. until retirement or until dependents are independent), (2) outstanding debts (mortgage, loans), (3) final expenses (funeral, medical), (4) education or other goals, then subtract existing savings and current life insurance. The result is your recommended coverage amount.

This life insurance calculator 2026 uses those inputs to estimate how much coverage you need. Enter your annual income, how many years of income you want to replace, debts, final expenses, education or other lump-sum needs, and existing savings. The calculator returns a recommended coverage amount.

Term vs whole life insurance

• Term life: Coverage for a set period (e.g. 10, 20, 30 years). Lower cost. Good for income replacement and debt coverage.
• Whole life: Permanent coverage with cash value. Higher cost. Often used for estate planning or when you need coverage for life.
• Many people start with term to cover the years when dependents and debts are highest, then reassess.

Factors that affect your need

• Income and years to replace: Higher income or longer replacement period increases need.
• Debts: Mortgage, car loans, and other debts should be covered so dependents are not burdened.
• Final expenses: Funeral and related costs (often $10,000–$20,000 or more).
• Education: If you want to fund children’s education, add that amount.
• Existing savings and insurance: Subtract what you already have so you do not over-insure.