How This Is Calculated
Coverage need = (annual income × multiplier) + debts + remaining child-related costs − existing assets. The multiplier is clamped between 10× and 15×.
Source: Industry-standard income-multiple life insurance guideline (10–15× annual income), as commonly cited by Policygenius, Ramsey Solutions, and other financial-planning publishers · Updated 2026-07-07 · Full methodology
What to Know
- The 10–15× income guideline is designed to replace a working parent's income long enough for a family to adjust financially and cover major remaining obligations.
- Families with young children often lean toward the higher end of the range (closer to 15×) since more years of income replacement and childcare costs remain ahead.
- Existing savings, employer-provided life insurance, and other assets should be subtracted from the total — this calculator does that automatically.
Frequently Asked Questions
A common starting point used by financial planners is 10–15 times your annual income, then adjusted for debts, remaining child-related costs, and existing savings. This calculator applies that guideline to your numbers.
Income replacement (your annual income × the multiplier you choose), outstanding debts you want covered, and any remaining child-related costs you enter — minus existing savings and assets that could offset the need.
The lower end (10×) suits families closer to retirement with fewer dependents; the higher end (15×) suits younger families with more years of income replacement and childcare ahead.
No. This tool produces an informational coverage estimate only. It does not recommend, rate, or endorse any specific policy or insurer.
Enter your existing assets and any current life insurance coverage in the "existing assets" field — the calculator subtracts this from the total need.