Life Insurance Needs Calculator

How Much Life Insurance do I Need Calculator Just how much life insurance will you need to provide adequately for your family?

Use this calculator to determine the size of policy your spouse needs to carry. That is, use this calculator from the point of view of how much money you will need today from your spouse's policy should you lose their income.

To help you in completing the form, consider that your life insurance needs are determined from these these basic components:

  1. Determing your immediate cash needs for outstanding bills, mortgages, holding a funeral, etc.
  2. Determing your future income needs. If you won't have enough income after things like spousal or government benefits you will need to,
  3. Determine the amount of money required to create an annuity for yourself that will 'top-up' your annual income.
  4. Subtract from all your current and future cash needs any cash you already have on hand.

Immediate Income Needs

Step 1

Determine your immediate cash needs. Should your spouse pass, you will have several immediate needs for cash. This first step will determine how much 'up-front' cash you will require.

Funeral Expenses ($):  help

Taxes, bill, & loans ($):  

Probate, legal, executor fees ($):  

Mortgage redemption ($):  

Emergency & education funds ($):  

Total Immediate Cash Needs ($):  

Future Annual Income Needs

Step 2

Determine your future cash needs. Should your spouse pass, you will lose their income. The purpose of this second step is to determine how much annual income you will need in the future.

Annual income you will need (A):  help

Less current sources of income

Surviving spouse's income:  

Government survivor benefits:  

Other benefits:  


Total from all sources (B):  

Additional annual income need (A - B)  

Step 3

If, in the line above, the value of (A- B) is greater than 0, then you will require additional income to meet the "Annual Needed Income", you said you would require in box (A). This is another place where life insurance helps.

You use the money's provided by the life insurance policy to create an annuity upon your spouse's death. That annuity will then pay you, annually, the amount needed to 'top-up' your annual income. Use these next fields to determine the estimated amount of the annuity you will need to create.

These next lines will determine the total amount of money you'll need to create that annuity

Annuity calculations

Expected rate of return:  

Inflation rate:  

Rate of return, inflation adjusted:  

Annuity to last for (# years):  

Required annuity amount ($)  

Your Total Cash Needs Upon Spouse's Death


Present Available Cash

Step 4

Having now determined all your current and future cash needs, consider what cash you already have.

Government death benefit:  

Existing life insurance:  



Total current capital:  

Your Spouse's Needed Life Insurance



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