How Much Life Insurance Do I Need?

How much life insurance do I need?
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    How Much Life Insurance Do I Need?

    This is often the first question shoppers ask before buying life insurance.

    Understanding how much life insurance you need is obviously important. This goes without saying.

    Usually everyone knows that life insurance will cover:

    • Future Income
    • Mortgage
    • Funeral Costs

    However, there are several areas that you may not be thinking of that are very important.

    Use the calculator or worksheet below in order to calculate a basic ‘Life Insurance Needs’.

    This will make sure you’re protecting your future appropriately.

    Tip: Wondering “How much life insurance do I need?” Call us at 888-411-1329 for a free consultation. We will gladly go over your life insurance needs with you and help you assess your needs. Want to learn more? Keep reading for tips and examples.

    Calculate your life insurance needs

    We’ve provide you two tools below to calculate your life insurance needs.

    1. Online calculation

    Use this online calculator that walks you through the basic needs analysis.


    2. Pen and paper life insurance calculation

    If you’re the type of person who prefers to calculate your needs on a paper or notepad, simply use our worksheet below.

    how much life insurance do you need?


    How much life insurance for a Stay At Home parent?

    For Stay At Home parents or partners who do not work outside of the home, you should calculate the following:

    Add up the monthly financial contribution that the Stay At Home parent or partner has toward the surviving family.

    Here is an example,

    When a Stay At Home parent passes away when you have young children, you’ll possibly be needing to hire a nanny or care provider.

    This situation is very common to ensure that your children are cared for when you return to work.

    A full time nanny could cost between $20,000 and $40,000 annually.

    If the hiring of a nanny would be in your plans, you can add this cost to line 5 of the worksheet above.

    Do I Have Enough Life Insurance?

    By using the worksheet above and calculating all of your life insurance needs, you can rest easy.

    You’ll have a great idea of what amount will be needed to provide adequate care for your loved ones if you were to die unexpectedly.

    This process of calculating your life insurance needs also helps prepare communication with your life insurance agent.

    You will be prepared and have a great understanding of the appropriate amount of coverage needed before applying.

    Shopping for Life Insurance

    Once you’ve calculated your life insurance needs, it’s time to see which companies will provide you the best rates.

    At Life Insurance Blog, we work with dozens of “A” rated life insurance companies.

    We’ll shop your case from all of the best life insurance companies to see who will give you the best rate based on your health and lifestyle.

    Whether you prefer a No Medical Exam life insurance policy or one with a medical exam, we have you covered.

    Need more options? We’ll help you find the best rates from all the life insurance types including:

    Give us a call today at 888-411-1329 and let us see how we can help you.

    Thank you for reading our post, How Much Life Insurance Do I Need? Please leave a comment or question below.

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    Michael Quinn LIB

    About Michael Quinn

    Michael Quinn is the cofounder of Life Insurance Blog and a multi-state licensed life insurance agent. LIB has helped thousands of people understand life insurance and secure affordable coverage.

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