Free Life Insurance Coverage calculator with clear step-by-step results.
Uses the needs-based approach: clear the debts, fund the household's spending for a defined number of years, provide for education and final expenses, then subtract what already exists. It is more defensible than a salary multiple because every component can be checked and challenged.
Total need
Need = mortgage + other debts + annual spending x years + education fund + final expenses
Cover required
Cover = total need - existing cover and liquid savings
Not insurance or financial advice. Appropriate cover depends on personal circumstances, tax treatment, trust arrangements and state benefits, all of which vary by jurisdiction. Consult a licensed adviser.
Commonly until the youngest child is financially independent, or until the surviving partner reaches pension age. Fifteen to twenty years is a frequent answer for a young family.
No - count it once. Enter existing mortgage protection in the existing cover field rather than removing the mortgage from the need.