In a 2013 LIFE Foundation study, more than 80% of respondents cited financial reasons for not having enough life insurance coverage to meet their needs. Yet they overestimated the cost of life insurance by about three times the actual price.
Providing for your family in the event or your death is a fundamental of risk management. And life insurance benefits that replace your income may be one of the best ways to meet your family’s ongoing financial needs. This calculator is designed to help you estimate the amount of life insurance you would need to produce a sufficient income stream for your family.
According to LIMRA, the cost of basic term life insurance has dropped by almost 50% over the last decade.
Ensuring that your family can maintain its current lifestyle in your absence is the purpose of life insurance. The figure below shows the life insurance benefit you would need to provide the income stream you specified for the desired number of years.
View how the life insurance benefit income stream would be paid out
|Current income before taxes
|Number of years income is needed
|Based on the above assumptions, you need the following amount of life insurance:
The information provided is not specific insurance advice, a guarantee of coverage, or a recommendation. The Life Insurance Calculator is a tool that can help you estimate your life insurance needs. The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance. As with most financial decisions, there are expenses associated with the purchase of life insurance. Please consult your insurance professional to determine the coverage appropriate to your individual situation.
How will the income stream from your life insurance benefit be paid out? What will the balance be year after year? The chart below shows the initial value of a life insurance benefit, how the account balance would fluctuate year by year, and when the benefit would be exhausted. Adjust your answers below and recalculate to see how the new numbers will affect your life insurance benefit.
Year by Year Benefit Value