Term Life Insurance Calculator
The right coverage amount isn't a guess. Calculate what your family would need to stay financially secure.
| Income Replacement | — |
| Mortgage Payoff | — |
| Other Debts | — |
| Education Fund | — |
| Less: Existing Assets | — |
| Net Need | — |
| Typical Premium (20-yr term, healthy non-smoker) | — |
How Much Life Insurance Do I Need?
This calculator uses the DIME method — Debt, Income, Mortgage, Education — minus your existing assets. A common shortcut is 10–12× your annual income, but a needs-based calculation like DIME gives a more accurate picture because it accounts for your actual obligations.
Term vs. Whole Life
Term life covers you for a fixed period (10, 15, 20, 30 years) at a much lower premium — ideal for covering the years when your family depends on your income. Whole life lasts a lifetime and builds cash value, but premiums can be 5–15× higher. For most families, term life is the cost-effective choice; consider whole life only with specific estate-planning needs.
What Affects Your Premium
- Age & health: apply young and healthy — rates lock in for the term.
- Smoking status: smokers often pay 2–3× more.
- Term length & coverage amount: longer terms and higher coverage cost more, but the premium per dollar drops at common breakpoints (e.g. $500K → $750K).
The premium shown above is a ballpark for a healthy non-smoker. Actual rates vary significantly by carrier and underwriting.
FAQ
Is a stay-at-home parent's income "zero"?
No — replacing childcare, housework and household management can cost $30,000–$50,000+ per year. Include coverage for non-earning caregivers too.
What if I already have group life through work?
Employer coverage (often 1–2× salary) is rarely enough and usually ends when you leave the job. Treat it as a bonus, not a foundation.