shopify analytics ecommerce
tracking

 Life Insurance Calculator

How To Use A Life Insurance Calculator

Home Life Insurance Needs Calculator

A life insurance calculator, or life insurance needs calculator, is one of the most invaluable tools when you have in mind to buy life insurance.

You have many options that will help you decide which policy is best for you. You can just guess that a certain amount will do the job.

You can use the rule that many agents use which amounts to somewhere between 5 and 10 years income. Or you can use a life insurance calculator specifically designed to tell you precisely how much life insurance you need after you answer a few questions.


Shop And Compare Quality Life Insurance Premium Quotes From Carriers Rated A+ Or Better By A.M. Best. Save Up To 70%


The questions go something like this for couples, with or without children. You can also apply them to anyone who has someone financially dependent on him or her.

1 - How much do you anticipate your loved ones will need to pay for funeral expenses? In today's world that would be about $10,000.00

2 - What about Estate Taxes, how much do you need to put away to take care of that? This can be considerable depending on the size of the Estate.

3 - Excluding your mortgage, how much unpaid debt do you have? Figure it out and enter that figure in the space provided on the life insurance calculator.

4 - How much liquid cash do you think would be good to put aside for unanticipated emergencies? This depends on ones lifestyle. Each person will come up with a different figure.

5 - What of a college fund for the children? How much do you think this will amount to for each. You can low ball that at about $75,000 for each child.

6 - If you were taken out of the picture what would the living expenses for the family be? How much will it cost per year? Here we are talking about anywhere between $25,000 and $150,000 for the average person. For more affluent people, accustomed to living big, this amount can be humongous.

7 - We need to take into consideration the spouses income and enter that amount. This will be deducted from the amount of income needed making the need arrived at by your life insurance calculator quite realistic.

8 - We also need to consider the Social Security benefit the spouse will receive.

9 - What kind of liquid assets do you both have? What is the value of your savings and investments? Arrive at a figure and enter that into the space provided.

10 - You know your spouse well, what kind of approach does s/he have toward investments? Would you consider the spouses approach aggressive or is s/he more conservative in this area?

For the business person the questions would be a little different.

1 - As the sole proprietorship and the owner of the business are one in the same the questions would be similar to those asked a married person.

2 - Partnerships and corporations use the value of the business and the amount of shares owned by each partner or shareholder to determine the dollar value of the amount of life insurance that would be placed on each life.

Here is a life insurance need calculator that you will find quite helpful:


Home | Life Insurance Articles | Life Insurance Calculator

Tools And Resources

Life Insurance Need Calculator

Recent Articles

  1. Life Insurance - Reasons Why You Should Buy Now

    Should life insurance buying be seen as an urgent matter? There is something about some people that at times may cause them to procrastinate about matters that could end up being quite costly...

    Read More

  2. Affordable Term Insurance - Affordable Term Life Insurance Policy

    Let us talk affordable term insurance. You want a policy that can fit into your budget, right?

    Read More

  3. Advantages Of Whole Life Insurance - Advantages To Owning Whole Life Insurance

    It can be a very satisfying feeling when you become aware of the advantages of whole life insurance for the first time.

    Read More

  4. Best Term Life Insurance Rate - Learn Which Is The Best Term Insurance Rate

    The best term life insurance rate can be quite easily found on the internet today because web insurance companies have done intense research on behalf of the consumer.

    Read More

  5. Great 30 Year Term Insurance Policies Explained - 30 Year Term Life Insurance

    I recently did some research on the development of the 30 year term insurance policy over the years. What I learned was quite interesting.

    Read More