Life Insurance Calculator // How Much Life Insurance Do I Need? 

Calculating Your Life Insurance Needs

Figuring out how much life insurance you will need down to the exact penny is probably not going to happen.

However, you can use this life insurance cost estimator​ to get a strong ​idea about the amount of coverage and the term length you may need​.

Please be sure to enter a value in all fields to process the calculation. If a field is not used, please enter 0.

Note: only numeric values will be accepted. Do not use special characters such as $ or commas.

  • 1. Start
  • 2. Expenses
  • 3. College
  • 4. Income
  • 5. Savings
  • 6. Spouse
  • 7. Result

Let's Calculate Your
Life Insurance Needs

Disclosures & Assumptions

This interactive calculator is a self-help tool and is not intended to provide financial advice or product recommendations. The results and explanations generated by this calculator are based upon, and will vary due to, your input and certain assumptions made by us. All projections are hypothetical in nature, do not reflect actual results, and are not guarantees of future results. Simply Insurance will assume no liability for the use of or reliance on this calculator. For a more accurate and detailed analysis specific to your circumstances, we encourage you to contact a qualified financial professional.

The information provided is not written or intended as specific tax or legal advice. Simply Insurance, its employees and representatives are not authorized to give tax or legal advice. Individuals are encouraged to seek advice from their own tax or legal counsel.

Insurance products issued by Simply Insurance, 4279 Roswell Road, Suite 208-201 Atlanta GA 30342

Estimate your family's expenses in case of your death

Typically the greater of $15,000 or 4% of your estate. This would include uncovered medical costs, funeral expenses, and final estate settlement costs. Note: If your estate is over $1,500,000 your final expenses may be much higher due to federal and state estate or inheritance taxes.
Mortgage Payoff Fund: You want to make sure there is enough money to cover the cost of the remaining mortgage. You want to leave your family the option to pay off the home.

Estimate your family's expenses for education

College funding: Total projected college costs (tuition plus all other costs such as room and board, books, etc.), less current funds in the child’s name. The tuition amount being used is for the average 4-year education and is provided by The College Board, which is $158,072 for private institutions and $71,440 for public institutions.

Total annual income your family would need if you died today

Total amount your family needs, before taxes, to maintain their current standard of living, typically 60%-75% of total income. Families with higher incomes typically fall into the lower end of that range.

Savings and current life insurance

Includes 401(k), Keoghs, pension and profit sharing plans.
Includes bank accounts, money market accounts, mutual funds, CDs, bonds, stocks and other assets.
Includes individual policies, group term coverage available through work, and any other life insurance on your life payable to your family or for the benefit of your family. Do not include accidental death insurance or “double indemnity” insurance.

Assuming your spouse would work following your death

This is going to be the number of years your spouse expects to work after you have passed away, this will help determine how much more coverage you may need.
Marginal tax rate: This is the rate of tax you are paying on your highest dollars of income. For instance, in 2013 a married taxpayer earning $50,000 has a Marginal Tax Rate of 15%. That’s because earned income between $72,500 and $146,400 gets taxed at 25%. The lowest Marginal Tax Rate is 10% and applies to couples who earn less than $17,850. The highest Marginal Tax Rate is 39.6% for dollars earned in excess of $450,000.

Your need for life insurance:

Should you die, the financial impact on your dependents is the loss of your income as well as the immediate expenses associated with your death. The death benefit offered through life insurance serves as replacement income for a period of time to help your family build a more financially secure future.

Calculation Overview

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