Life Insurance Calculator

Life Insurance Calculator for Estimating Life Insurance Needs In The Future

This life insurance calculator helps you calculate your current needs for life insurance death benefits in case you die some time this year. You may need to use this calculator every year to recalculate your life insurance needs because most likely your life insurance needs will change year after year as your children grow up and your financial conditions change.

Life insurance is mainly used for the protection of the loss of your family income and the provision of cash immediately after your death due to the different death costs incurred.

The basic principle of having life insurance death benefits as part of your estate is that you don't want the living standard of your family members to decline because of your pre-mature death. On the other hand, you also don't want the living standard of your family members to rise because of your death. Life insurance is important especially when your family needs to go through the important adjustment period immediate after your death. After a period of time, however, your family should be able to adapt to the new situation in your absence. Therefore, life insurance is best used for providing immediate cash for immediate needs and just enough cash that can add to your existing wealth so as to keep your family living standard the same before and after your death.

Note: You need to spend approximately 10 minutes or more on inputting the data required by this life insurance needs calculator. If you are in a hurry, please bookmark this page and come back next time when you have time!

There are several assumptions used by this life insurance calculator. There is no guarantee that these assumptions meet the conditions of everyone! It is important that you try different sets of values for the variables because different assumptions on different variables give you very different results depending on whether the assumptions are too optimistic or pessimistic.

Expected Average Future Rate of Return from Your Investments %

Immediate Obligations and Death Expenses
Funeral Expenses (average should be around $5000 to $6000)	$
Immediate Home and Car Mortgage Payment (next 5 months)	$
Total Family Expenses within 4 Months of Your death (because spouse can't work for a few months; business can't be run for a few months, etc)	$
Medical Bill Immediately Due After Your Death	$
Attorney's and Estate Executor's Fee	$
Other Immediate Debt Payment (credit cards and bills)	$

Long-term Debt and Obligations
Unpaid Value of Home Mortgage Loan (the real estate property used by your family)	$
Unpaid Value of Car Loan	$
Other Long-term Debts (other bank loans, private business debt, etc)	$

Medium-term/Long-term Family Expenses
Spouse's age
Spouse's spending per year	$ /year
Number of Years Before Child #1 Becomes Independent
Child #1's spending per year (average for the future years)	$ /year
Number of Years Before Child #2 Becomes Independent
Child #2's spending per year (average for the future years)	$ /year
Number of Years Before Child #3 Becomes Independent
Child #3's spending per year (average for the future years)	$ /year
Number of Years Before Child #4 Becomes Independent
Child #4's spending per year (average for the future years)	$ /year
Number of Years Before Child #5 Becomes Independent
Child #5's spending per year (average for the future years)	$ /year

Liquid Assets
Checking Accounts	$
Savings Accounts	$
Money Market Funds	$
Corporate and Government Bonds	$

Fixed/Non-liquid Assets (Do Not Include the House and Cars that your family members are currently using)
CDs	$
Current Value of Stock Options (actual market value of stocks - execution value of stocks)	$
IRA, 401k, 403b or other retirement accounts	$
Value of Houses and Land Not Used by Your Family Members (less any unpaid mortage)	$
Value of Other Assets (business assets, jewelry, paintings loan to other people etc)	$

Post-death Family Income
After-tax Income Brought in by Your Spouse Before the Spouse Retires	$ /year
Yearly After-tax Retirement Income from Social Security or Pensions for Your Spouse	$ /year

Post-death Family Income
After-tax Income Brought in by Your Spouse Before the Spouse Retires	$ /year
Yearly After-tax Retirement Income from Social Security or Pensions for Your Spouse	$ /year

Note: Your family's conditions will change every year. Your life insurance needs are very likely to change over time. I suggest that you repeat your calculation using a life insurance calculator every year to make sure you are neither over-insured nor under-insured.

You need to keep in mind that while you can reduce your life insurance death benefits relatively easily, especially when you are buying term life insurance, it is relatively hard for you to raise your life insurance death benefits. Life insurance companies normally require you to have physical examinations before you can purchase new or purchase more life insurance whether it is term life or cash-value life insurance.

Disclaimer: This life insurance calculator is provided to anyone for free as is. There is no guarantee that the answers given by the life insurance calculator are either complete or correct. It is not anycalculator.com responsibility if the user has incurred any monetary or non-monetary loss as a result of using the calculator. Use this calculator only for a very rough estimate of your life insurance needs. Use this calculator at your own risk! It will give you an estimate only.

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