Professional services
Life Insurance Needs Calculator
How much life cover a household would need, built up from the obligations it would have to meet.
Result
An estimating tool, not insurance advice and not a quote. Actual premiums are set by underwriting on factors no calculator sees: claims history, credit and loss data, exact location, construction, contract requirements and the insurer's own appetite. What cover you need is a question for a licensed broker who has looked at your situation. Income replacement is discounted to present value on the assumption the payout is invested rather than spent evenly, which is why the figure is lower than income times years. Inflation, surviving-partner earnings, social security survivor benefits and changing needs as children grow are all real and none of them are modelled.
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About this calculator
Is ten times income a reasonable rule?
It is a common starting point and it ignores your actual obligations. A household with no mortgage and grown children needs far less than one with a large mortgage and young children on the same income.
Why discount the income replacement?
Because a lump sum can be invested. Replacing $85,000 for fifteen years does not require $1.275m if the balance earns a return while it is drawn down.
Should I include a spouse's income?
The calculation replaces the income being lost. If a surviving partner earns and would continue to, the need is the shortfall rather than the whole household income, which is a conversation for a broker.
The formula
need = present value of income to replace + debts + education + final expenses, less existing cover and liquid assets
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