Life Insurance Needs Calculator



How much life insurance do you need?

Calculating the economic value of a human life to a family is important, but there is no magic number. Our "Calculator" will provide you with an estimate of the amount of life insurance needed to replace a deceased wage earner's income. The calculations assume insurance proceeds are invested at a rate you specify and that your purchasing power is retained based on your assumed rate of inflation.
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Life Insurance Needs Calculator

1st Step: Enter the annual replacement income that will be needed if the insured dies prematurely (before-tax).
2nd Step: Enter the number of years the replacement income will be needed by dependents / beneficiaries.
3rd Step: Please estimate the average annual interest rate you can earn on the invested life insurance proceeds. (%)
4th Step: Enter your estimate of the average annual inflation rate.
(The average rate for the last 10 years has been approx. 3 %)


Click on "Compute" to calculate the amount of life insurance needed to replace a deceased's lost annual income:
Estimated life insurance needed:  $
How much will this cost?

The Term Life Insurance Information Center was created to provide consumers with the information needed to make informed decisions about the purchase of term life insurance.


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