Are you getting ready to take the needed steps towards your family’s financial security when you demise? If so, use this free life insurance calculator to workout what the minimum amount of cover you will need to invest so your loved once are financially covered in the event of your passing.

How much Life Insurance do I need?

Life Insurance Calculator

How much life insurance do you need? Based on the annual income needed, your current total savings and other investments accounts, your estimated funeral expenses (this is optional), this insurance calculator will provide you with an estimate of how much life insurance coverage would be best for your situation.

Generally speaking, a younger person would have more insurance coverage than an older person. The number of years of income required would be based on how many more years you have till you retire from your current age.

How to Calculate my Life Insurance Coverage

To determine what your coverage would look like, simply enter all the required information into the calculator to determine the amount of coverage you should have.

Life Insurance Calculator
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years
$
$
2.5%
0%100%
4%
0%100%

Spouse work

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years

Children funding

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There is additional information that would affect your overall estimated life insurance needs. This includes if your spouse would still be working, or if you would need funding for your children’s college (or other) funds.

Everyone’s circumstances are different when it comes to life cover.

This circumstance includes age, pre-existing medical conditions, occupation, hobbies, alcohol consumption, exercise routines, and many more. It’s essential that when taking a life insurance coverage that it is tailored to you, so you can get the needed support for your family should the unexpected occur.

Why is it important to have life insurance

Life insurance should never be seen as just an optional investment, but more of a personal need. Everyone needs a life insurance policy for the following reasons:

  • A large part of the investment is given to your loved ones after your demise.
  • A small percentage is designated to taking care of all funeral or death-related expenses including hospital bills.
  • A life insurance policy can be part of a policy holder’s estate.
  • In the case of a whole life insurance policy, you have the ability to build cash value which you can borrow against, or even cash out if needed.
  • Life insurance can also help cover assisted living expenses including costs associated with nursing home care.
  • In the case of universal life insurance, the policyholders can enjoy the investment for a more well-off retirement

How to lower your insurance premium

  • Try to live healthy and maintain a healthy lifestyle
  • Go for a high life insurance that is within your need. If you take into consideration inflation, then a $100,000 now will be worth less in ten years time. So if you want to take inflation into account, the you may want to increase your life cover
  • Always make sure you read the terms of a life insurance policy offer before signing on the dotted line
  • Assess the reliability of the life insurance company to ensure your premiums are kept safe and secure
  • There is no need to purchase a life insurance policy that guarantees huge payout when you die. Work within your limit to ensure that you can afford to pay for the insurance premium while still alive.

Note: This life insurance calculator should be used only as a guide. We all have different requirements and situations, hence the calculations performed with this calculator are simple and very basic. We recommend you seek an expert’s advice before making up your mind on the amount of life insurance cover you would require.