To avoid being underinsured or overpaying for coverage you don’t need, use our life insurance calculator. Just enter your income, savings and debt, and we’ll estimate how much life insurance you need based on standard financial planning guidelines.
Life Insurance Calculator: How Much Life Insurance Do You Need?
Use MoneyGeek's simple life insurance calculator to find out how much life insurance you need and get personalized estimates.
Get an affordable life insurance quote.
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Updated: October 27, 2025
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Enter your desired coverage amount into the life insurance cost calculator below to see how much your policy will cost.
Life Insurance Calculator: Estimate Your Cost
Enter your details into the calculator to get personalized term life insurance cost estimates by company.
Life Insurance Calculator
We’ll give you a suggested amount of cover to buy in just 3 easy steps. — it's free, no personal information required, no spam.
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Rates updated:
Nov 06, 2025
How to Use the Life Insurance Cost Calculator
MoneyGeek's life insurance calculator estimates costs based on your profile and coverage needs in five steps:
- Enter personal information: Provide your gender, age, height and weight. Personal details determine your base premium calculation, so accurate inputs produce reliable cost estimates.
- Indicate smoking status and health score: Specify smoking status and select your health rating from excellent to poor. Health factors adjust estimated costs to reflect your risk profile and lifestyle impact on premiums.
- Specify the coverage amount: Enter your desired coverage amount to match the financial protection you want to provide your beneficiaries.
- Get life insurance estimates: The calculator produces cost estimates based on your complete profile. Estimates provide reliable cost projections but aren't official quotes.
- Compare and decide: Compare estimates to select policies matching your budget and coverage needs, then request official quotes through MoneyGeek's insurance partners.
MoneyGeek's life insurance premium calculator helps you find a plan that offers the best coverage at a reasonable cost.
How Do You Determine How Much Life Insurance You Need?
The life insurance coverage amount, or death benefit, is the sum the insurance company pays to beneficiaries when the insured person passes away. Set at the time of policy purchase, this amount sustains your beneficiaries financially.
Below are five calculation methods to help you determine how much life insurance coverage you need. Each method considers different aspects of your financial situation.
1. Income Replacement Calculation
Calculate how much income you need to replace over a certain number of years. Start by estimating how many years your family would need support. Multiply your current annual income by that number.
For example, if you're earning $50,000 annually and want to provide 10 years of income, you'd need a $500,000 life insurance policy.
Best for: Simple situations with basic income replacement needs.
2. DIME Method
DIME stands for debt, income, mortgage and education. Add up the following:
- Your current debt, excluding mortgage.
- Your annual income multiplied by the number of years your family would need support.
- Your mortgage balance.
- Estimated education costs for your children.
This total is the recommended life insurance coverage amount.
This method helps your family eliminate debt, maintain their lifestyle, keep the family home and fund children's education.
Best for: Families with specific debt obligations and education planning goals.
3. Human Life Value Approach
This method considers your income, age and projected working years until retirement. Calculate your total income for the rest of your working life and adjust for inflation.
If you're a 35-year-old earning $60,000 annually and plan to work until 65, your human life value would be the total income you'd earn over the next 30 years.
Best for: High earners with long career horizons who want to replace their complete economic value.
4. Needs Analysis
This method calculates your family's financial needs after your death, including daily living expenses, mortgage payments, outstanding debts and future needs like college tuition. Subtract your current assets, including savings and any existing life insurance. The difference is the amount of additional life insurance coverage you need.
Best for: Complex financial situations with multiple income sources, significant assets or variable expenses.
5. Rule of Thumb
Some financial advisors suggest buying coverage equal to 10 to 12 times your annual income. This method is simple but doesn't account for individual circumstances like debt, savings or number of dependents, so it may not provide an accurate estimate for everyone.
Best for: Quick estimates only. Not recommended for final coverage decisions.
Life Insurance Rate Calculator: Bottom Line
Personal details including age, height and weight ensure accurate life insurance rate calculations. MoneyGeek's quote calculator provides estimates to compare affordable coverage options from top companies. Determine your coverage needs before using MoneyGeek's premium calculator.
Frequently Asked Questions
MoneyGeek's experts answered common questions about estimating life insurance costs.
Is the life insurance calculator free?
MoneyGeek's cost estimator is always free. We request personal information for accurate, personalized estimates but don't store any details you submit.
Do I need life insurance?
Whether or not life insurance is worth it depends on your personal situation. Consider getting life insurance if anyone depends on your income. This includes spouses, children, or aging parents who would face financial hardship if you died. If you're single with no dependents or debts, you may not need coverage.
Is a $100,000 life insurance policy enough?
Whether $100,000 coverage is sufficient depends on your financial responsibilities and goals. Most financial advisors recommend higher coverage amounts for income replacement and debt coverage.
What factors affect life insurance rates?
Life insurance costs depend on your age, health, smoking status and coverage amount. Younger, healthier applicants pay lower premiums. Your medical history, lifestyle choices and gender also affect rates, with women paying less due to longer life expectancy. Term life insurance costs less than permanent policies like whole life insurance or universal life insurance.
What kind of life insurance do I need?
- Term life insurance works well if you need affordable coverage for a specific period, like until your mortgage is paid off or your kids finish college.
- Permanent life insurance (whole or universal life) costs more but lasts your entire life and builds cash value you can borrow against. Choose this if you want lifelong coverage or need it for estate planning purposes.
Learn More: Types of Life Insurance
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How Our Life Insurance Calculator Works: Our Methodology and Rate Analysis
Choosing life insurance feels overwhelming when you're trying to balance coverage needs with monthly budget constraints. Most online calculators give you generic estimates that don't reflect what you'll actually pay. We built our life insurance calculator differently, using proven actuarial methods and current industry data to provide realistic premium estimates that help you make informed coverage decisions.
How We Gathered Rate Data
We analyzed 1,488 life insurance quotes from major life insurance companies, incorporating the same rating factors insurers use when determining your premiums. Our research included rate filings and premium data to ensure accuracy across different policy types and coverage amounts.
Life insurance coverage costs and company information were updated in 2025 to reflect current market conditions.
The estimates represent baseline premiums for standard health applicants. Your actual life insurance rates may vary based on detailed medical underwriting, specific health conditions, lifestyle factors, and your chosen insurer's current pricing strategies. Final premiums are calculated only after completing the full application and underwriting process.
Calculator for Life Insurance: Related Pages
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.