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Life Insurance Calculator

How much life insurance do you need? Enter your current assets, expense and income. You can also adjust the inflation rate and your expected rate of return to see how these variables can impact your insurance needs. Press the "View Report" button to see a year by year breakdown of your family's future income and expenses.

Your family may require NEW_INSURANCE_NEEDED in life insurance.


This is based on your total life insurance needs of LIFE_INSURANCE_REQUIRED_TO_COVER_SHORTFALL with CURRENT_INSURANCE of current life insurance. This analysis covers NUMBER_OF_YEARS_YOU_WISH_INSURANCE_TO_COVER years with an inflation rate of INFLATION_RATE per year. Your rate earned on savings and investments is calculated at RATE_EARNED_ON_SAVINGS_AND_INVESTMENTS per year. Your combined federal and state income tax rate is COMBINED_FEDERAL_AND_STATE_TAX_RATE.


Total Assets
Current life insurance coverageCURRENT_INSURANCE
Cash and savingsCASH_AND_SAVINGS
Home equityHOME_EQUITY
Total assets to cover expensesTOTAL_ASSETS_TO_COVER_EXPENSES
Expenses at Death
Estate or inheritance taxes on assetsESTATE_OR_INHERITANCE_TAXES_ON_ASSETS
Probate costsPROBATE_COSTS
Funeral costsFUNERAL_COSTS
Uninsured medical costsUNINSURED_MEDICAL_COSTS
Debt repaymentDEBT_REPAYMENT
College fund for child 1COLLEGE_FUND_FOR_CHILD_1
College fund child 2COLLEGE_FUND_CHILD_2
College fund child 3COLLEGE_FUND_CHILD_3
Total expenses at deathTOTAL_EXPENSES_AT_DEATH
Your Family's Future Income (After Taxes)
Year to

Your Family's Future Expenses
Year to

Total future expenses*TOTAL_FUTURE_EXPENSES

*Both the future expenses and future income totals are expressed as the amount of cash required today, invested at your expected rate of return, to equal the total future cash flow. For example, if you are expecting to receive $1,000 in exactly one year, that $1,000 has the same value as $909 today invested at 10%. Our totals show these current amounts to calculate the life insurance you require today to help cover your future expenses after your future income is taken into account.

Income and expenses**


**Please note that interest income in the above schedule is calculated at AFTERTAX_RATE, which is your after-tax annual rate of return.

Life Insurance Calculator Definitions

Current life insurance coverage
Total amount of life insurance coverage you currently have for yourself.
Years insurance must last
Number of years your spouse will need to use your insurance proceeds to provide for living expenses and income.
Inflation rate
This is what you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI). From 1925 through 2015 the CPI has a long-term average of 2.9% annually. Over the last 40 years highest CPI recorded was 13.5% in 1980. For 2015, the last full year available, the CPI was 0.0% annually as reported by the Minneapolis Federal Reserve. Your total expenses are increased by this rate for each year you require income. The income you would receive from your life insurance policy is used to cover any shortfalls between your expected income from all sources and your expenses.
Return on investments
The annual rate of return for your investments. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending Dec. 1st, 2015, had an annual compounded rate of return of 7.76%, including reinvestment of dividends. From January 1970 through to Dec. 2015, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.5% (source: Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.

It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that Separate Account investment funds and/or investment companies may charge.

Insurance products may additionally include mortality, expense risk charges, cost of insurance, administrative, and surrender charges that will have a significant impact on the total rate of return for the investment.

Income tax
This is your income tax rate. Changing this rate only affects your interest income from your investments. All other income and expenses should be entered on an after-tax basis.

Cash and savings
Total you have in cash, checking accounts, savings accounts or other accounts that can be used to help cover expenses.
Home equity
Total amount of equity in your home that you are willing to use toward your living expenses. Only include the home equity that you consider available to use toward your living expenses. For example, the equity you would make available by selling your home and moving into a smaller one.
Total value of all investments that you are willing to use toward your living expenses.
Any other assets that you may be willing to sell or liquidate.
Estate or inheritance taxes on assets
Taxes that are required to be paid on your assets at death.
Probate costs
Probate costs cover a state's legal fees for disbursing the assets of the deceased. You may incur significant probate costs, depending on your state of residence, even if you have a will.
Funeral costs
All costs required to cover the cost of the funeral.
Uninsured medical costs
Any medical costs that are not covered by your medical insurance. Make sure to include any deductibles.
Debt repayment
Credit card debt, auto loans, home equity loans, mortgages or other debt that you wish to repay. Providing the ability to repay these loans if you were to die can significantly help your family meet their monthly living expenses.
College fund for children
Amounts you wish to provide your surviving children to cover future college expenses.
Other expenses
Any other items that you need to pay with your insurance proceeds.
Spouse income from work
Income expected from your spouse after your death. If your spouse needs education or retraining, make sure that the starting year for this income provides adequate time to complete.
Social Security child benefits
Depending on your work history, your children may qualify for Social Security benefits. A surviving child's Social Security benefit generally continues to age 18. Once the children are gone, Social Security benefits are generally not available until the widow/widower turns age 60.
Social Security survivor benefits
Depending on your work history, your family may qualify for Social Security benefits. Typically, Social Security benefits for the widow/widower cease when the youngest child turns 16. Although the child's benefit generally continues to age 18. Once the children are gone, Social Security benefits are generally not available again until the widow/widower turns age 60.
Other income
Any other monthly income that your family may receive after your death.
Child care expenses
Total monthly expenses for childcare.
Living expenses with children at home
Total monthly expenses while your children are living at home. This should include all monthly expenses except child care.
Living expenses with children gone
Total monthly expenses after your children have left home. This should include all monthly expenses.
Children's education expenses
Monthly expenses for your children's education expenses. If your children have not yet entered college, and have no other educational expenses, leave this amount at zero and enter an amount in the college fund entry fields in the total expenses at death section.
Retraining and education for spouse
Monthly expenses expected to cover any cost of education or retraining for your spouse to re-enter the workforce.
Other expenses
Any other monthly expenses not included above.

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