🛡️ Life Insurance Calculator

A common rule of thumb is 10–15 times your annual income, but the right amount depends on your specific situation. This calculator uses a needs-based approach, adding up income replacement, debts, mortgage, education costs, and final expenses. This gives a more accurate estimate than a simple income multiplier since it accounts for your unique financial obligations.

Term life insurance covers you for a specific period (10, 20, or 30 years) and is significantly cheaper — often 5–15x less than whole life. Whole life insurance covers you for your entire life and builds cash value but costs much more. Most financial advisors recommend term life for the majority of people, as you can invest the premium savings for better returns.

The best time to buy life insurance is when you're young and healthy — premiums increase with age and health changes. Key life events that trigger the need include getting married, having children, buying a home, or taking on significant debt. Even single adults with co-signed loans or aging parents to support may benefit from coverage.

Yes, include employer-provided coverage in the "Existing Life Insurance" field. However, employer policies typically only cover 1–2x your salary, which is usually insufficient. Also, you lose this coverage if you change jobs. Consider supplementing with a personal policy that follows you regardless of employment.

Review your coverage every 2–3 years or after major life events: marriage, divorce, birth of a child, home purchase, significant salary change, or paying off major debts. As your children grow and your mortgage shrinks, your insurance needs may decrease, potentially allowing you to reduce coverage and save on premiums.