Life Insurance Calculator

Life insurance replaces income and pays off debts if you die while your family still depends on your paycheck. A 35-year-old non-smoking father of two making $85,000 a year with a $350,000 mortgage and two kids who will need college money typically needs $1.5M–$2M of coverage — not $250,000. The gap between what people buy and what they need is the #1 failure I see after 15 years of writing these policies.

Real example. Dan is 35, makes $85,000, has $350,000 left on his mortgage, and wants $120,000 per child in a 529. The calculator returns a gross need of $1.44M. He already has $100,000 in group life through work — but group life ends the day he leaves the job. Net need to buy privately: $1.34M. A $1.5M 20-year term for a healthy 35-year-old runs roughly $38–$52/month. If Dan waits until 45, the same policy will quote closer to $92–$128/month. Every year you delay buying term costs you real dollars.

Use three inputs aggressively: years of income replacement (10 is a good default, 15 if you have young kids), total debts (don't forget the mortgage and any co-signed student loans), and college fund per kid ($120K is a public-school target; $260K is an Ivy target). Subtract only permanent coverage you will still have after you leave your job — group life does not count. Rerun whenever income jumps 15%, you have another kid, or you take on new debt.

If you want to stress-test the answer, pair with term vs. whole life calculator and life insurance ladder calculator — the two numbers should corroborate each other within ~15%. If they don't, one of your inputs is off.

The common mistakes: buying 5× salary because a calculator website said so (it's usually 10×–15× once you add debts and college); counting group life at its full face value when it dies with your job; picking a 10-year term because it's cheap when your youngest is 4 (you need 20); and buying whole life at age 35 when term plus a 7% index fund investment of the premium difference produces a bigger number 30 years later — run the term vs. whole life calculator before you sign.

Underwriters care about: age, smoker status, build (BMI), family history (cardiovascular, cancer before 60), driving record (DUIs crush quotes), risky avocations (skydiving, scuba past recreational depth), and occupation (commercial pilots, oilfield workers get rated). A healthy 35-year-old non-smoker pays roughly $0.35–$0.55 per $1,000 of coverage per month for 20-year term; a 45-year-old smoker can pay $3.50+ per $1,000. A single-pound BMI point near the cutoff (30) can shift you between rate classes and cost 15–25% more.

Life insurance is regulated at the state level but rates don't vary much by state for standard term — you'll see 3–8% spread across ZIP codes. What does vary: the guaranty association cap (most states guarantee up to $300,000 of death benefit if the carrier goes insolvent), and whether a no-exam option is available at your coverage size. California, New York, and Florida have additional disclosure requirements that slow down applications but don't change pricing materially.

Before you pull quotes, write a one-page spec: exact limits, exact deductible, exact riders, exact coverage period. Give all carriers the same spec. When quotes come back, ignore the headline premium and normalize — is the deductible identical, are the riders identical, is the liability limit identical? Only then compare.

Drop each carrier's real number back into this calculator to see the expected annual cost (premium + deductible × claim probability), not just the sticker. A $150 cheaper premium with a $750 higher deductible is usually worse once you account for probability. Pair with coverage gap analyzer and long-term disability calculator to confirm you're sizing limits correctly.

Rerun this calculator whenever: you have a child, buy a house, change jobs (and lose group life), receive a 15%+ raise, pay off the mortgage, or the youngest child leaves college. Most families need to step coverage up in their late 20s to late 30s and step it down in their late 50s as the mortgage disappears and kids become self-sufficient.

Calendar a reminder for 45 days before the renewal. Pull three fresh quotes — one from a direct writer (GEICO, Progressive), one from a captive agent (State Farm, Allstate, Farmers), and one from an independent agent who represents 8–12 carriers. Combine with long-term care insurance calculator for your full portfolio view.

This tool is educational, not financial or insurance advice. Actual premiums depend on factors no web tool can perfectly model, including carrier-specific underwriting, state regulations, your individual history, and policy-form details. Formulas here use simplified national averages to get you within a reasonable planning range — not to produce a bindable quote. Before purchasing any life insurance policy, consult a licensed insurance agent in your state. Carrier links on this page are sponsored affiliate placements; we may earn a commission if you click and purchase, at no additional cost to you. This does not influence the calculator math or our editorial picks.

This calculator runs entirely in your browser using JavaScript. Nothing you type is transmitted to our servers. Nothing is stored after you close the tab. Use the Export PDF button to take the inputs and results with you. If you want a life insurance feature that doesn't exist yet, send a note via the contact page — we prioritize tool-building based on real user requests.