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Life insurance calculator: how much coverage do you need?
Two simple calculators: one for protecting your family and your mortgage, one for covering a funeral and final bills. Real carrier rate tables, not a guess.
An estimate, not advice or a quote. Costs are based on real carrier rate tables for a healthy applicant in the best available health class, and assume you qualify — your actual price depends on your health, your state, the carrier, and underwriting. Coverage needs depend on your whole situation; a licensed agent can help you fine-tune it.
An estimate, not a quote — for a healthy applicant who qualifies for a day-one (level) plan, based on real carrier rate tables. Health history, state and carrier change the real price; many health conditions still qualify, and graded plans cover more. The $16,000 marker is our rule of thumb for a typical funeral, cemetery costs and final bills — your family’s number may differ.
Prefer a page for just one? Mortgage protection calculator · Final expense calculator
The short answer
Most families need enough coverage to replace the deceased’s income for the years others depend on it, pay off the mortgage and debts, fund college, and cover the funeral — minus savings and existing coverage. For working parents that often lands between 10 and 15 times income. For retirees, it’s often just enough for final expenses — often in the $10,000–$25,000 range.
How the calculator works
It uses the approach most financial planners start with — sometimes called the DIME method (Debt, Income, Mortgage, Education) — plus final expenses, then subtracts what you already have:
- Income × years. How long would your family lean on your paycheck? Until the youngest is grown is a common answer. Stay-at-home parents: use what childcare and household help would cost.
- Mortgage and debts. Paying off the house is the single biggest relief a policy can give a family.
- College. Your best guess for each child, added together.
- Final expenses. A funeral with viewing and burial had a national median of about $8,300 before cemetery costs (details).
- Minus what you have. Savings your family could actually use, and life insurance you already own. Work coverage often ends when the job does — count it carefully.
Rules of thumb vs. a real calculation
| Method | How it works | Best for | Blind spot |
|---|---|---|---|
| 10× income | Multiply your salary by 10 | A quick first number | Ignores your mortgage, kids and savings |
| DIME | Debts + income years + mortgage + education | Working families | Ignores savings unless you subtract them |
| Final expense | Funeral + cemetery + last bills | Retirees with no dependents | Doesn’t protect a spouse’s income |
| This calculator | DIME + final expenses − what you have | Almost everyone | Still an estimate — talk to an agent to fine-tune |
Examples
| Who | Income × years | Mortgage + debts | College | Minus savings | Coverage need | Fits |
|---|---|---|---|---|---|---|
| Single parent, 32 | $55,000 × 15 | $192,000 | $80,000 | −$20,000 | $1,100,000 | 20-year term |
| Married couple, 40 (one earner) | $95,000 × 12 | $285,000 | $120,000 | −$75,000 | $1,500,000 | 15-year term |
| Empty nesters, 55 | $70,000 × 5 | $100,000 | — | −$60,000 | $425,000 | 10-year term |
| Retiree, 68 | — | $0 | — | −$3,000 | $15,000 | Final expense |
Each example also includes $15,000–$18,000 of final expenses. Rounded the way the calculator rounds.
What does that coverage cost?
Estimated monthly premiums for a healthy non-smoker, from carrier rate tables we work with. The low end is the best health class at the most competitive carriers; the high end is more typical, including no-exam options.
| Age | Policy | Men | Women |
|---|---|---|---|
| 30 | 20-year term, $500,000 | $31–$85/mo | $28–$72/mo |
| 40 | 20-year term, $500,000 | $49–$128/mo | $41–$112/mo |
| 50 | 15-year term, $250,000 | $40–$96/mo | $33–$70/mo |
| 65 | Final expense, $15,000 | $82–$88/mo | $64–$70/mo |
| 75 | Final expense, $10,000 | $100–$111/mo | $72–$82/mo |
Estimates, not quotes. Health, tobacco, state and carrier change the real price — that’s why we shop dozens of carriers for you.
Term or permanent?
Term life is the most coverage per dollar and fits needs that end — the mortgage, the years your kids depend on you. Whole life and final expense never expire and fit needs that don’t — the funeral, a spouse’s security, a legacy. Many families use both: a large term policy for the working years and a small permanent policy for the end. More: term life · whole life · final expense · term vs. whole.
Want exact numbers? We’ll compare dozens of carriers for the amount you just calculated — with your real health history — at no cost.
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Life insurance calculator FAQ
How much life insurance do I need?
Add up what your family would have to cover without you — your income for the years they’d depend on it, the mortgage, other debts, college, and final expenses — then subtract savings and any coverage you already have. That total is your need. Many working parents land between 10 and 15 times their income; retirees often need only enough for final expenses.
Is 10 times my income enough life insurance?
It’s a reasonable starting point, but it ignores your actual mortgage, debts, kids and savings. Someone with a large mortgage and young children can need more; someone with savings and grown kids can need less. The calculator above uses your real numbers instead.
How long should my term life insurance be?
Match it to the longest thing you’re protecting: the years until your youngest is self-sufficient, or until the mortgage is paid off. Common choices are 10, 15, 20 and 30 years. If you’re unsure, pick the longer term — it costs more per month but protects the years that matter most.
How much does $500,000 of life insurance cost?
For a healthy 30-year-old non-smoker, a 20-year, $500,000 term policy runs roughly $31–$85 a month for men and $28–$72 for women in carrier rate tables we work with — the low end for the best health classes at the most competitive carriers. Your health, age and state set the real price.
How much life insurance do I need for a funeral?
The National Funeral Directors Association’s latest price study puts the median funeral with viewing and burial at about $8,300 before cemetery costs. Final expense policies are often in the $10,000–$25,000 range — enough for the funeral, cemetery and last bills.
Should I count my work life insurance?
Count it, but carefully: group coverage through work usually ends when you leave the job, and it’s often only one or two times your salary. Many people treat it as a bonus rather than the foundation.
Do stay-at-home parents need life insurance?
Yes. Childcare, driving, cooking and running a household cost real money to replace. Put the yearly cost of replacing that work in the income slider.