Life Insurance Needs Calculator: Determine the Right Coverage

Purchasing life insurance can be one of the most important gifts you give to your family. Strike a balance between what you think your family will need and what you can afford to buy.

Things You'll Need

• Term Life Insurance
• Whole Life Insurance
• Life Insurance
• Accounting Services

Show More

Instructions

• 1

  Calculate your after-tax income and then count the number of years of life expectancy remaining.

• 2

  Consult a reputable agent and use an insurance company's computer program to plug in numbers and generate a figure.

• 3

  Add outstanding debts, such as your mortgage, car loan and credit card debt.

• 4

  Remember to allow for any medical costs and funeral expenses.

• 5

  Remember that your family may also benefit from pension and Social Security benefits.

• 6

  Consider your spouse's ability or desire to earn income and consider extra child care costs.

• 7

  Remember the special needs of a disabled child or a parent whom you support.