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Life Insurance Needs Calculator
Educational coverage-need worksheet using income-replacement years, debts, education/childcare, and final expenses, offset by existing coverage and liquid assets. Not a quote or product recommendation.
Limitation: Educational arithmetic only.
How to Estimate a Coverage Gap
Enter planning assumptions for one household scenario at a time.
Enter annual income to replace and whole years of replacement.
Separate need from product choice
This worksheet estimates a gap. Term vs permanent products, riders, and premiums require separate professional guidance.
What the Additional Coverage Need Means
The primary result is how much more face amount this scenario implies after offsets. It is not a quote and does not guarantee insurability.
Life Insurance Needs Examples
Gap after existing coverage
Entered coverage scenario
Additional coverage need
Income block 600,000 plus 265,000 other needs = 865,000 gross; offsets 125,000 leave 740,000.
Offsets already cover the need
Entered coverage scenario
Additional coverage need
Gross need 15,000 is below existing coverage, so the gap floors at zero.
Update when life changes
Recalculate after marriage, children, home purchases, or large debt paydowns.
Frequently Asked Questions
Still have questions about this calculation?
Try the CalculatorLife Insurance Needs Formulas
No mortality tables, premium engines, or product recommendations are embedded.
Formula
Income replacement need
annual income to replace × years of income replacement
Gross need
income need + debts + education/childcare + final expenses
Offsets
existing life coverage + liquid assets
Additional coverage need
max(0, gross need − offsets)
Scientific Background
Assumptions: user-entered replacement horizon and lump-sum goals; no inflation, investment return, or tax modeling. Limitations: real planning may use present-value methods, Social Security survivor benefits, and product-specific features not modeled here. Investor.gov and CFPB publish consumer education on insurance and household finance.
Sources & review
Life Insurance Needs Calculator documents the references behind its formulas and assumptions. Always treat results as educational estimates, not personalized professional advice.
Last reviewed
July 22, 2026
Digital assets investing basics
U.S. Securities and Exchange Commission — Investor.gov
https://www.investor.gov/introduction-investing/investing-basics/save-and-investConsumer financial tools
Consumer Financial Protection Bureau (CFPB)
https://www.consumerfinance.gov/about-us/blog/how-reduce-your-debt/
See our methodology and corrections policy.