Plan coverage with income, debts, and savings. See how employer benefits and policies measure up. Adjust assumptions, then download results securely in seconds now.
| Scenario | Age | Income | Debts | Coverage In Place | Additional Needed |
|---|---|---|---|---|---|
| Single earner, mortgage, emergency cushion | 35 | $60,000 | $220,000 | $150,000 | $410,000 |
| Dual income, modest debts, education goal | 40 | $85,000 | $70,000 | $300,000 | $190,000 |
| Low debts, high savings, strong employer benefit | 30 | $55,000 | $20,000 | $400,000 | $0 |
This tool uses a needs-based approach, combining income support and one-time goals:
Adjust inputs to match your household, goals, and local conditions.
For more accuracy, update inputs annually or after major life changes.
This calculator converts your household obligations into a single coverage target. It sums present‑value income support, one‑time costs, and a safety buffer, then subtracts assets and compares existing coverage. A gap indicates how much additional cover can stabilize cash flow for dependents. Coverage in place can include employer life, personal term policies, and riders.
Annual support is estimated from income multiplied by your replacement ratio, then reduced by partner income. The tool values this support as an annuity over your chosen years, discounted by a real rate that blends expected return and inflation. Longer support periods and higher ratios raise the need quickly. For example, 70% of 80,000 equals 56,000 per year before partner offsets and other resources.
Mortgage and other debts are treated as immediate payoffs, while education is projected forward by inflation and discounted back to today. Emergency funding is sized as monthly expenses times selected months, which helps protect against short‑term income disruption. Final expenses, medical buffers, and legacy goals add clarity to non‑monthly obligations. If education is 8 years out at 3% inflation, costs rise about 26.7%; discounting at 5% reduces the present value.
Changing assumptions can materially alter results. For example, moving expected return from 5% to 4% while keeping inflation at 3% lowers the real rate and increases the present value of income support. Increasing the buffer margin from 10% to 15% adds a direct uplift to the subtotal, improving resilience but raising the target. Run conservative, baseline, and optimistic scenarios to see how sensitive your gap is.
Use the output as a planning range, not a precise quote. If the model shows surplus coverage, you can test lower replacement ratios or shorter support windows to validate comfort. If a gap remains, review assets, employer benefits, and term length options, and re‑run annually or after major milestones. Document assumptions for review.
It approximates return after inflation: (1+return)/(1+inflation) − 1. A lower real rate increases the present value of income support and can raise the coverage target.
Many households start between 60% and 80%, then adjust for taxes, childcare, and lifestyle. Use a higher ratio when one income covers most fixed costs and dependents are young.
Yes, if that income would likely continue. Subtracting it prevents double counting support. If the income might stop due to caregiving or reduced hours, lower the offset or add a buffer.
Only include assets that would be available for dependents, without heavy penalties or restrictions. If access is uncertain, discount the amount or exclude it to avoid understating the coverage target.
Enter total in-force coverage across employer plans and personal policies. If an employer benefit ends when you leave work, model a lower value or run a scenario with that coverage removed.
Review annually, and immediately after milestones like a new mortgage, child, salary change, or major debt payoff. Small assumption updates can materially change the present value and the gap.
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.