How to Start Calculating Life Insurance


Calculating life insurance, or deciding “How much life insurance do I need?”, typically requires planning, asking questions, and having patience. Your life insurance needs may change as you age and as you grow your income. People may alter their coverage policies when their income grows and their responsibilities change as well.

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How much life insurance do I need?

“How much life insurance do I need?” may be a common question. You may begin calculating life insurance in general by having a term policy for seven to 10 times the amount of your annual salary. However, your actual coverage will be unique to your personal and specific circumstances. Things to consider include thinking about if you want your insurance to cover your household’s income. Then you will generally need more coverage.

To answer the question of how much life insurance do I need, you can start by calculating life insurance by using online calculators to help figure out your expenses, needs, and savings goals. Do you need coverage to make up for your old salary? How many beneficiaries are you naming? Do you have outstanding debt? These are some of the considerations you may typically want to keep in mind. Do you have a spouse that is not working? Are you young and healthy, or are you reaching retirement? Your needs may vary as your life changes.

If you are young, check out the article, “What Kind of Life Insurance for Young People is Available?”

Are you reaching retirement? Check out this page about  over 50 life insurance.

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"Did you know that since 2005 the percentage of U.S. adults without life insurance has nearly doubled?"*