Protect loved ones from debts and lawsuit exposure. Customize inputs for quick, detailed coverage guidance. Download tables, share outcomes, and review anytime easily securely.
Fill the fields that match your situation. Leave unknown values as zero.
Sample scenario to demonstrate typical inputs and outputs.
| Item | Value |
|---|---|
| Annual income | $80,000 |
| Income years × rate | 12 × 0.70 |
| Mortgage + loans + cards | $160,000 |
| Final expenses | $15,000 |
| Net worth at risk | $200,000 |
| Risk level | Medium (25%) |
| Existing coverage + assets | $120,000 |
| Recommended coverage | $745,000 |
This tool combines liabilities, income support, and a legal-risk reserve.
If Gross Need is lower than Resources, the recommended coverage is zero.
This calculator starts by totaling obligations that can drain survivors. It includes mortgage balances, personal loans, credit cards, medical bills, and personally guaranteed business commitments. For example, 120,000 mortgage + 15,000 loans + 6,000 cards equals 141,000 in immediate liabilities. Entering accurate balances helps prevent underestimating the cash needed to close accounts and protect inherited assets.
Income support is modeled as Annual Income × Replacement Years × Replacement Rate. If income is 60,000, years are 10, and the rate is 0.70, the income need equals 420,000. Adjust years to match childcare, schooling, or retirement timing, and set the rate to reflect benefits, secondary income, or reduced spending.
Liability exposure is addressed through a reserve based on Net Worth at Risk × Risk Multiplier. The multiplier defaults to 10% (low), 25% (medium), or 40% (high), with an optional 5% add-on for higher exposure. A 200,000 net worth at medium risk produces a 50,000 reserve; high risk with the add-on becomes 90,000. This reserve is a planning cushion for settlements, claims, and legal outcomes.
A settlement and legal fee percentage is applied to the base need to reflect administrative friction. With a 2% fee, a 650,000 base need adds 13,000 in fees, yielding 663,000 gross need. Resources then reduce the gap: liquid assets plus existing coverages, employer benefits, and other reliable proceeds. If resources total 120,000, the pre-buffer gap is 543,000.
The tool adds a buffer (default 5%) to the remaining gap for uncertainty and changing conditions. A 543,000 gap with a 5% buffer yields 570,150 recommended coverage, shown with a ±10% planning range. Use exports to document assumptions, revisit inputs after major purchases, and align coverage with beneficiary and ownership structures. Compare scenarios across currencies and life stages.
It estimates extra coverage to protect exposed assets if claims or lawsuits occur. It is based on net worth at risk and a selectable risk multiplier, plus an optional add-on for higher exposure.
Use the number of years dependents rely on your income, such as until children finish education or a spouse reaches retirement. Many households start with 10–15 years, then test shorter and longer scenarios.
Claims and estates often incur administrative, legal, and processing costs. The fee percentage is a planning allowance applied to the base need, so the recommended coverage better reflects real-world friction.
Only include amounts likely to be accessible quickly without heavy penalties or delays. If access is uncertain, enter them as zero and treat them as long-term support, not immediate liquidity.
Existing individual policies, employer benefits, and other reliable proceeds reduce the protection gap. The tool subtracts these resources from the gross need before applying the buffer percentage.
Review at least annually and after major changes like a new loan, marriage, a child, or a significant asset purchase. Updating inputs keeps the liability reserve and income support aligned with your reality.
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.