Free life insurance estimator — see how much coverage you need & what it costs
This free life insurance calculator (also a life insurance coverage calculator) helps you figure out how much life insurance coverage you actually need and what it will cost. Life insurance is one of the most important financial tools for protecting your family — but most people either buy too little or overpay for coverage they don't need.
A good rule of thumb is 10-12 times your annual income, plus enough to cover debts, mortgage, and future expenses like college tuition. Use this calculator to get a personalized number.
The standard formula is:
How much does life insurance cost?
For a healthy 30-40 year old, a 20-year term life policy with $500,000 coverage costs about $20-$40 per month. Whole life insurance for the same coverage is much more — $300-$800 per month. Rates increase with age, health issues, and risky hobbies. Buy when you're young and healthy for the best rates.
Is group life insurance from work enough?
Usually not. Employer-provided life insurance is typically 1-2 times your annual salary — far less than most families need. Plus, if you leave your job, you lose the coverage. Buy your own individual term life policy to make sure you're properly protected.
At what age should I buy life insurance?
The best time is when you have people who depend on your income — usually when you get married, buy a house, or have kids. The younger and healthier you are, the cheaper your premium. A 30-year-old will lock in a much better rate than waiting until 45.
Does life insurance cover suicidal death?
Most term life policies have a 2-year contestability period — if death by suicide occurs within the first 2 years, the company can deny the claim. After 2 years, suicide is covered (in most countries, including the U.S.). This is designed to prevent people from buying insurance right before taking their own life.
What happens to my life insurance when the term ends?
With term life, if you outlive the policy term, the coverage ends and you don't get any money back. That's why it's cheaper than whole life — you're renting protection, not building equity. Most people don't need life insurance after their kids are grown and their mortgage is paid off.
There are two main types of life insurance, and they're very different:
For 95% of people, term life is the way to go. It's cheap, it's simple, and it gives you the coverage you need during your highest-responsibility years (when kids are young and mortgage is big). Whole life is usually a bad deal for average families — too expensive, too complex, and the investment returns are mediocre.
There are several rules of thumb for calculating your life insurance need:
Most financial advisors recommend having at least $500,000 to $1,000,000 in life insurance if you have a spouse, kids, or a mortgage. The exact amount depends on your family's specific situation.
Want to get the best life insurance at the cheapest price? Here are pro tips:
How much does term life insurance cost for a 40-year-old?
A healthy 40-year-old can get a 20-year, $500,000 term life policy for about $30-$50 per month. That's $360-$600 per year. Whole life for the same coverage would be $400-$800 per month — much more expensive. Rates go up about 8-10% per year as you age, so buying earlier saves you a lot.
What happens if I outlive my term life policy?
If you outlive your term life policy, the coverage just ends. You don't get any money back — that's the trade-off for cheap term insurance. Most people don't need life insurance after their kids are grown and their mortgage is paid off, so outliving the term is actually a good outcome.
Can I have multiple life insurance policies?
Yes! You can have as many life insurance policies as you want. Many people have a small group policy from work plus a larger individual term policy. Just make sure the total coverage matches what your family needs. There's no limit — you can buy $2 million or more if you need it.
Does life insurance pay out for any cause of death?
Almost all causes of death are covered: illness, accidents, heart attacks, cancer, even natural disasters. The only exceptions are: suicide within the first 2 years (contestability period), death while committing a crime, and death from war or active military service (some policies exclude this). After the first 2 years, basically everything is covered.
Do stay-at-home parents need life insurance?
Yes! Stay-at-home parents do a huge amount of unpaid work: childcare, cooking, cleaning, transportation, homework help. If something happened to them, the surviving spouse would have to pay for all that — daycare alone costs $10,000-$20,000 per year. Stay-at-home parents should have life insurance too, usually 5-10 years of replacement services.