How Much Life Insurance Do You Actually Need?
A tool that shows its assumptions
Most calculators give you a number. This one gives you the logic. Because an estimate only works if you know what's underneath it.
The common rule of thumb—10 times your annual income—makes sense for some people, not others. It depends on what you're actually trying to cover, what you already have, and how long you need protection.
This tool lets you see and adjust those variables. The result is a starting point, not a final answer.
Your estimated coverage need
What this number means
This is a rough estimate based on the inputs you provided. It assumes you want to replace a portion of your income for a set number of years, cover specific debts and obligations, and account for coverage you already have.
What it doesn't include: Future income changes, inflation, non-wage income, employer benefits details, complex financial situations that would need individual review.
How to use this estimate
- Start with it. Compare quotes using this amount, then adjust up or down based on what you learn.
- Consider whether you prefer more coverage for fewer years, or less coverage for longer.
- If you have employer coverage, it's already factored into the calculation if you entered it above.
You can enter your estimated coverage amount when you get to the application. If a medical exam is required for your quote, the system may let you schedule it directly in the flow, which can reduce follow-up steps.
Why this approach?
An estimate works best when you can see the logic behind it. This tool exposes each variable so you can decide what matters for your situation. Some people want to replace more income for fewer years. Some want to account for existing assets more conservatively. The inputs let you explore those tradeoffs.
If your situation involves business interests, estate planning, or other complexities, a licensed advisor (Ryan Rostine, CA Producer #4479678) can review. You don't need to talk to anyone to see rates and explore options.
Common questions
Does this replace financial advice?
No. This produces a rough estimate for a straightforward situation. Complex finances, health considerations, or non-standard needs may warrant individual review.
Why 70% for income replacement?
Many people don't need to replace 100% of income—taxes drop, some expenses change. But you can adjust this. If you want to be conservative, use 100%. If your household has other income sources, you might use less.
Should I include liquid assets?
Optional. Some people subtract accessible savings because they could use them. Others prefer the estimate without this offset, treating it as a more conservative target. You decide based on your comfort level.
How accurate is this?
It's a directional estimate based on the assumptions you enter. Your actual need depends on factors this tool cannot see: how your income might change, exact future expenses, your partner's financial situation, and other variables. Use this as a starting point, not a precise figure.