Article · Life insurance

How much life insurance do you need?

Start with the people who depend on you, then estimate what they would need. This calculator uses a simple, transparent method you can adjust.

5 min read · Last reviewed 2026-10 · 2 cited sources · Published by Simple Insurance Guide · How we verify

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Key takeaways

Start with the people who depend on your income, and for how long.
The calculator adds the income to replace, your debts and one-time costs, then subtracts coverage and savings you already have.
It gives a starting point, not a quote or a recommendation.
Check what coverage you already have through work or elsewhere.

Estimate your starting point

Annual income to replace ($)The yearly amount your household would need replaced

Years of supportHow many years the people who rely on you would need it

Debts to cover ($)Mortgage and other debts you want paid off

One-time costs ($)For example final expenses or education costs

Coverage and savings you already have ($)Existing life insurance and savings you would count on

Estimated additional coverage to consider

Enter your numbers

The method and its limits

The calculator adds the income you want to replace over a number of years, your debts and any one-time costs, then subtracts coverage and savings you already have. It does not account for inflation, investment returns, taxes, Social Security or changes in your family's situation.

Treat the result as a conversation starter, not a recommendation. The NAIC suggests considering how many people depend on you financially and whether you will have substantial debt and taxes owed after your death.

Questions to think through

Who depends on my income, and for how long?
Which debts would remain, such as a mortgage?
What coverage do I already have through work or elsewhere, and does it continue if I change jobs?
What one-time costs should the benefit cover?

Questions

Is this the amount I should buy?

No. It is an estimate based on the numbers you enter. A licensed agent or financial professional can help you apply it to your situation.

Does work coverage count?

It can, but group coverage can end when you leave the job. Check whether you can keep or convert it.

Sources

NAIC: Tips to help you purchase life insurancecontent.naic.org
NAIC: Life insurancecontent.naic.org

Informational only. Rules and policy terms change and differ by state and insurer. Confirm details with your policy, your insurer or your state insurance department.