How Much Life Insurance Do I Need?
Calculate your life insurance needs based on your income, debts, family situation, and state-specific costs like college tuition and cost of living.
Until retirement or youngest child is grown
Debts to Pay Off
Existing Coverage
Usually 1-2x salary
Calculate your coverage needs
Select your state and enter your annual income to get a personalized life insurance recommendation.
This calculator provides estimates for educational purposes only. Actual insurance needs depend on many factors. Consult a licensed insurance professional for personalized advice. Cost of living data from Bureau of Economic Analysis (2023). College cost estimates from College Board (2024-2025).
DIME+ Method
Calculate coverage using the proven Debt, Income, Mortgage, Education formula plus estate taxes.
State-Specific Data
Adjusts for your state's cost of living, college costs, and estate tax rules.
Existing Coverage
Deducts your current insurance, employer coverage, and savings to show your true gap.
Completely Free
No account required. No email. Enter your info and get your recommendation.
Frequently Asked Questions
A common rule of thumb is 10-12 times your annual income, but your actual needs depend on your debts, number of dependents, existing savings, and future obligations like college costs. Our calculator factors in all these elements for a personalized recommendation.
DIME stands for Debt, Income, Mortgage, and Education. It's a formula to calculate life insurance needs: add up all debts, multiply income by years to replace, add mortgage balance, and add education funding needs for children. Then subtract existing resources like savings and current coverage.
Yes, significantly. If you live in a high cost-of-living state like California or New York, your family will need more to maintain their lifestyle. Our calculator adjusts income replacement based on your state's cost of living index relative to the national average.
If your estate may be subject to estate taxes (12 states plus DC have estate taxes, 5 states have inheritance taxes), life insurance can provide funds to pay these taxes without forcing heirs to sell assets. Our calculator includes estate tax estimates for applicable states.
Employer-provided life insurance (typically 1-2x salary) should be counted as existing coverage. However, it's usually not portable if you leave your job, so it's wise to have personal coverage as well. Enter your employer coverage in our calculator to see your true gap.
Term life insurance provides coverage for a specific period (10, 20, or 30 years) at lower premiums. Whole life is permanent coverage with a cash value component but costs 5-15x more. For most families focused on income replacement, term insurance offers the best value.
More Estate Planning Resources
Explore related tools and documents to complete your estate plan.
Last Will and Testament
Create a free, state-specific will with witness and notarization requirements included.
Pour-Over Will
Transfer assets to your existing trust. State execution requirements included.
Estate & Inheritance Tax Calculator
Calculate federal estate tax, state estate tax (12 states + DC), and inheritance tax (5 states) for an estate or trust.
Probate Cost Calculator
Estimate attorney fees, executor fees, court costs, and timeline for probating an estate in your state. See if the estate qualifies for simplified probate procedures.
Estate Settlement Checklist
Get a personalized checklist for settling an estate after someone passes away. Covers trust administration, probate, and intestate estates.
