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Insurance Calculator: How much life insurance do I need?  
How much life insurance should I have?


There are several methods of calculating the insurance need.   From a simple rule of thumb to the more complex and sophisticated life need analysis calculation.   Here we are using a much simpler income replacement method along with an approximate cost of other goals, which intuitively makes sense.

If you were to die today

 
How much supplemental income do you want to provide your family for ongoing living expenses on an annual basis?  $ 
No. of years you want to provide this income     years
Cost of all other goals you want to accomplish based on today’s dollars.
(If the cost of your child's 4 years education at a community college of your choice is $40,000 (for 4 years) and if you want to pay off your mortgage where outstanding loan balance is $100,000 and you want a $10,000 emergency cash fund. Then you will enter $150,000 here.)
 $ 
Amount of insurance you currently have. (Please indicate the death benefit.)  $ 
Your current net worth that could be used toward the above needs  $ 
Your expected inflation rate     %
Expected rate of return
(You may want to be conservative as after a spouse’s death, the investment may take a conservative turn.)
    %
Calculate


Results
Insurance needed to cover the cost of your goals plus the supplemental income you want to provide your family







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