Updated: September 11, 2025
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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.
Enter your desired coverage amount into the life insurance cost calculator below to see how much your policy will cost.
Enter your details into the calculator to get personalized term life insurance cost estimates by company.
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.
Rates updated:
Sep 16, 2025
MoneyGeek's life insurance calculator estimates costs based on your profile and coverage needs through five simple steps:
With these steps, MoneyGeek’s life insurance premium calculator helps you make well-informed decisions so you can find a plan that offers the best coverage at a reasonable cost.
The life insurance coverage amount, or death benefit, is the predetermined sum the insurance company pays to beneficiaries when the insured person passes away. Set at the time of policy purchase, this amount is tailored to sustain your beneficiaries financially.
There are different ways to determine the right coverage amount. Below are five standard calculation methods to help you determine how much life insurance coverage you need. Each method takes into account different aspects of your financial situation.
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 and minimal complexity.
DIME stands for debt, income, mortgage and education. These are the four key areas to think about when buying life insurance. Add up the following:
This total is the recommended life insurance coverage amount.
This method ensures your family can eliminate debt, maintain their lifestyle, keep the family home and fund children's education without financial stress.
Best for: Families with specific debt obligations and clear education planning goals.
This method considers your income, age and projected working years until retirement. To calculate, consider your total income for the rest of your working life. Adjust it for inflation.
For instance, if you're a 35-year-old earning $60,000 annually and you 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.
This method involves calculating your family's financial needs after your death, including daily living expenses, mortgage payments, outstanding debts and future needs, like college tuition. You then 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.
Some financial advisors suggest buying coverage equal to 10 to 12 times your annual income. While this method is simple, it 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.
Use DIME when: You have specific debts, mortgage and education goals you want to address directly.
Use Human Life Value when: You're a high earner with decades of working years ahead and want to replace your complete economic contribution.
Use Needs Analysis when: You have complex finances, multiple income sources, significant assets or unique family circumstances.
Use Income Replacement when: You need a straightforward approach for basic coverage without complicated financial obligations.
Avoid the Rule of Thumb for: Final decisions, as it ignores your specific financial situation and may leave your family under- or over-insured.
See how different families might use our calculator to determine their life insurance coverage needs based on age, income and financial obligations. In these examples, we’re using 67 as the target retirement age for each family.
Ages: 32/30, Income:$85,000, Dependents: Two young children
Calculation: $85,000 × 35 years = $2,975,000 income replacement + $320,000 obligations (mortgage $285,000 + education $25,000 + final expenses $10,000) - $12,000 savings = $3,283,000 needed.
Takeaway: Young families need substantial coverage because of their limited savings and long income replacement periods.
Ages: 38/39, Income: $95,000, Dependents: Three children
Calculation: $95,000 × 29 years = $2,755,000 income replacement + $485,000 obligations (mortgage $250,000 + education $75,000 for three children + childcare replacement $150,000 + final expenses $10,000) - $125,000 assets = $3,115,000 needed.
Takeaway: Single-income families need higher coverage to replace both earned income and valuable unpaid household services.
Ages: 55/52, Income: $120,000, Dependents: None (independent adult children)
Calculation: $120,000 × 12 years = $1,440,000 income replacement + $165,000 obligations (remaining mortgage $150,000 + final expenses $15,000) - $380,000 existing assets = $1,225,000 needed.
Takeaway: Pre-retirement couples need less coverage, focusing on final expenses and legacy goals rather than decades of income replacement.
Several personal factors determine your life insurance premium, making each policy uniquely priced. Knowing these factors can help you get more accurate estimates from tools like our life insurance cost calculator.
Age is the biggest factor in determining your life insurance costs. The younger you buy coverage, the lower your premiums will be. Insurers consider younger applicants lower risk, which translates to better rates.
Your health determines your premium through the underwriting process. Insurance companies assign health ratings that directly affect what you pay:
Super Preferred Plus | Excellent health, no medical issues | Perfect health, ideal BMI, no medications | Best available rates |
Preferred Plus
| Very good health, minor issues only | Good health, occasional medication use | Below standard rates |
Standard Plus
| Good health with some manageable conditions | Controlled conditions like mild hypertension | Standard baseline rates |
Standard
| Average health with multiple factors | Multiple medications, some health history | Above standard rates |
Substandard
| Poor health requiring table ratings | Serious health conditions, recent surgeries | Significantly higher rates or coverage limitations |
These health ratings represent general categories. Your actual rating comes from detailed medical underwriting with your chosen insurer. The process may include a medical exam, though no-exam policies may also be available.
Your body mass index affects premium calculations, with specific ranges triggering rate adjustments:
Life insurance companies often use height-weight charts alongside BMI calculations during underwriting. The connection between weight and premium costs remains consistent across insurers.
Women generally pay less for life insurance because of their longer life expectancy statistics. The difference is most noticeable when you’re younger, because that’s when gender-based mortality differences are more pronounced.
Premium costs scale with coverage amounts, but larger policies often have better per-dollar rates thanks to reduced administrative costs relative to the death benefit. These factors work together to determine your final life insurance premium estimate. Use our calculator to estimate costs based on your specific profile.
If you have employer-sponsored coverage, include it when calculating how much life insurance you need. This coverage often equals one or two years of your salary.
While beneficial, assess whether this coverage meets your needs. Employer plans are a great foundation, but they might not be enough, especially if you have significant debts or dependents. These group policies are often not portable if you change jobs. The coverage also decreases or ends at retirement.
Use workplace coverage as a foundation, but evaluate whether supplemental individual coverage is needed to fully protect your family's financial future.
Determining how much life insurance you need isn't just about coverage amounts. The type of policy you choose impacts your financial protection strategy.
Term life insurance provides temporary coverage at lower costs, making it easier to afford higher coverage amounts when your needs are greatest. Permanent policies, including whole life and universal life, combine death benefits with cash value accumulation but cost more, potentially limiting how much coverage you can buy.
Coverage Duration | 10–30 years | Lifetime | Lifetime |
Premium Cost | Lowest | Highest | Moderate |
Cash Value | None | Guaranteed growth | Variable growth |
Premium Flexibility | Fixed | Fixed | Adjustable |
Investment Component | No | Conservative | Market-linked options |
Best For | Temporary needs, budget-conscious | Permanent needs, conservative investors | Flexible premiums, investment growth |
Other policy variations include variable life, indexed universal life and no-exam policies. Each serves specific needs and risk tolerances.
Optimize your life insurance costs through strategic shopping and healthy lifestyle choices:
These steps, supported by tools like a term insurance premium calculator or life insurance needs calculator, simplify finding cost-effective life insurance.
The right life insurance policy depends on your financial situation, health and long-term goals. Compare providers and policies to ensure you make the best choice for your future. Tools like an online life insurance calculator can help you make an informed decision.
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.
MoneyGeek's experts answered common questions about estimating life insurance costs.
MoneyGeek's cost estimator is always free. We request personal information for accurate, personalized estimates but don't store any details you submit.
To get cost estimates with MoneyGeek's calculator, input your personal data including age, gender, health score and desired coverage. The calculator lists estimated costs from various companies tailored to your specific profile.
Life insurance costs vary based on age, health, lifestyle and coverage needs, making each premium unique to individual circumstances.
Affordable coverage is available through insurance companies, online marketplaces and brokers. Compare quotes from the cheapest life insurance companies to find cost-effective policies. Some employers offer group life insurance benefits at competitive rates.
Good life insurance coverage amounts cover your debts, ongoing living expenses and future obligations based on your family's financial needs and goals.
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.
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.
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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
