Plan protection with realistic inputs and assumptions quickly. See coverage, gap, and affordable premium ranges. Save results to CSV or a simple PDF file.
The calculator uses a needs-based approach:
Premium estimates use a simple illustrative rate per $1,000 of coverage based on age, term, and health class.
| Scenario | Income | Years | Debts | Mortgage | Children | Savings | Existing Coverage | Recommended Coverage |
|---|---|---|---|---|---|---|---|---|
| Sample A | $65,000 | 20 | $12,000 | $80,000 | 2 | $10,000 | $50,000 | $520,000 |
| Sample B | $90,000 | 15 | $8,000 | $0 | 1 | $25,000 | $100,000 | $410,000 |
| Sample C | $45,000 | 10 | $5,000 | $20,000 | 0 | $5,000 | $0 | $180,000 |
Most families start with income continuity. This calculator estimates replacement as your income minus partner income, multiplied by a chosen percentage. For example, $60,000 income, $10,000 partner income, 70% replacement equals $35,000 per year. That figure is discounted over the selected years to estimate the present value of support. It helps align coverage with timelines and budgets.
The tool converts assumptions into a real rate using (1+discount)/(1+inflation) − 1. With 5% discount and 2.5% inflation, the real rate is about 2.44%. Over 20 years, a $35,000 annual payment has a present value near $546,000, giving a grounded baseline for protection sizing. Shorter horizons reduce PV; higher real rates reduce PV.
Beyond income, needs often include debt payoff, mortgage balance, final expenses, education funding, and an emergency buffer. If monthly expenses are $2,500 and you choose six months, the liquidity target is $15,000. Two children with $20,000 each adds $40,000, helping convert life events into measurable funding requirements. Adding a mortgage payoff can materially change the recommended total.
Available resources lower the gap. The calculator adds savings, other assets intended for protection, existing personal coverage, and employer benefits. If savings are $10,000, other assets $15,000, and existing coverage totals $100,000, offsets equal $125,000. Subtracting offsets from total needs yields the recommended coverage estimate. Keeping offsets realistic avoids underinsuring critical obligations.
Use the outputs to compare scenarios, not to “pick a perfect number.” Try 60%, 70%, and 80% replacement and vary years from 10 to 25. Adjust inflation and discount inputs to reflect your environment. The chart highlights which components dominate your needs and how premiums scale with coverage size, supporting practical decision‑making. Revisit inputs after major life changes or debt reduction milestones.
Start with 60–80% of net household income. Use a higher percentage if most spending supports dependents or fixed obligations. Use a lower percentage if you have strong savings, dual incomes, or lower long‑term expenses.
Discounting converts future cash needs into today’s dollars, reflecting investment growth assumptions. The tool uses a real rate (discount minus inflation effect) so income replacement can be compared fairly with savings and other offsets.
Include debts you want fully repaid if the insured dies. If your plan is to keep paying a mortgage from replacement income, you can include only part of the balance or omit it and increase the replacement years.
Add employer coverage as an offset, but consider portability and job changes. Many people model only a portion of employer benefits for conservative planning, especially if the coverage ends when employment ends.
No. It’s a simple illustration using age, term, and health class to estimate a rate per $1,000 of coverage. Actual pricing depends on underwriting, location, riders, and insurer rules.
Recalculate after income changes, new debts, marriage, children, or major savings milestones. A quick annual review is also useful, especially if inflation shifts materially or your goals and timelines change.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.