How much life insurance might you actually need?
Most rules of thumb — ten times your income, say — are a guess dressed up as a rule. This works from your own figures, shows you every component, and gives you a range rather than pretending to a single right answer.
What would need covering
Rough figures are fine. Every field explains why we are asking, and you can change anything and watch the number move.
This is what your household would have to replace.
How long would your family need that income?
Used only to word the education line clearly.
So the household could stay in the home without a monthly payment.
Car loans, credit cards, student loans — anything that would still be owed.
What you would want set aside, if anything. There is no right number here.
Funeral costs, outstanding medical bills and the first few weeks. Costs vary a lot by region and by the service chosen, so adjust this to what is realistic where you live.
Longer-term support for a family member. If this applies, how the money is held matters — an outright inheritance can affect benefit eligibility.
Beyond covering the costs above.
What is already in place
This is subtracted from the total. Being honest here is what makes the gap figure useful rather than alarming.
Policies you own personally. These stay with you regardless of your job.
Counted here, but treat it as temporary — it usually ends when the job does, and it is often smaller than people expect.
Only money your family would genuinely use for these costs. Retirement savings that already have another job should not be counted twice.
A range worth considering
$15,000–$15,000
- Conservative
- $15,000Shorter replacement window, no cost-of-living increase.
- Balanced
- $15,000What you entered, with the cost-of-living increase applied.
- More comprehensive
- $15,000Five more years of income replacement.
Coverage and assets already in place
$0
Which leaves roughly $15,000 of the balanced figure not yet covered.
Where the number comes from
- Final expenses$15,000
Show every component and how it was worked out
| Component | Amount | How we got it |
|---|---|---|
| Final expenses | $15,000 | Funeral costs, outstanding medical bills and the immediate expenses a family faces in the first few weeks. |
What this estimate is not
About this estimate. This tool produces a general estimate from the figures you entered and simple assumptions you can adjust. It is not personalised advice, an application, an underwriting decision or a quote. Real numbers depend on the carrier, the product, your health and your state.
Do not cancel existing coverage. Do not cancel, lapse or reduce coverage you already have based on anything you read here or on any estimate produced by these tools. Replacing coverage can have real costs and you may not qualify for new coverage. Talk to a licensed professional before changing an existing policy.
How the maths works
There is nothing proprietary here, and that is deliberate. A number you cannot interrogate is a number you cannot act on.
Income replacement
+ Mortgage
+ Other debts
+ Education funding
+ Final expenses
+ Special needs or caregiving
+ Legacy
− Life insurance you already own
− Employer coverage
− Assets earmarked for the same purpose
= Coverage range worth considering
Why a range and not one number
Because the honest answer depends on judgements only you can make — how long your family would need support, whether you want education fully funded, whether a partner would return to work. We show a conservative figure, a balanced one and a more comprehensive one so you can see how sensitive the total is to those choices.
Why we do not assume investment returns
Many calculators discount the future income stream by an assumed rate of return, which always produces a smaller recommended figure. We increase for the cost of living and stop there. If you would rather model returns, that is a conversation worth having with a licensed financial adviser.
What this does not tell you
What it would cost, whether you would qualify, or which kind of policy suits. The policy fit assessment covers the second question and the approval path estimator covers the third.
Important information
Educational information. The information on this page is general and educational. It is not insurance, tax or legal advice, and it is not a recommendation to buy, keep, change or cancel any policy. Your own situation may lead to a different conclusion. Please talk with a licensed professional before acting.
About this estimate. This tool produces a general estimate from the figures you entered and simple assumptions you can adjust. It is not personalised advice, an application, an underwriting decision or a quote. Real numbers depend on the carrier, the product, your health and your state.
Product availability. Products, riders and features are offered by the issuing insurance company, not by Quantum Family Wealth. Availability, names, costs and terms vary by carrier and by state, and can change. Not every product described here is available to every applicant.
Underwriting and approval. Nothing on this site is an approval, a decline, a quote or an offer of coverage. Eligibility, your rate class and your final premium are determined by the insurance company after you submit a formal application and it completes its own underwriting review. Carrier rules differ and change over time.
Do not cancel existing coverage. Do not cancel, lapse or reduce coverage you already have based on anything you read here or on any estimate produced by these tools. Replacing coverage can have real costs and you may not qualify for new coverage. Talk to a licensed professional before changing an existing policy.