Coverage calculator
How much life insurance do I need?
Short answer: most families need 10 to 15 times the main earner's income. The number below is more accurate, because it uses your actual mortgage, debts, children and existing coverage. It takes about a minute and asks for nothing in return.
Your coverage number
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Private by design. This calculator runs entirely in your browser. No email, no account, nothing stored or sent — and the estimate updates as you type.
Your need equals about 14.3 years of your income — families typically aim for 10–15 years.
Coverage you already own and savings applied: $50,000
Estimated cost for that amount: $39 – $46 / month
Illustrative range for a healthy non-smoker, 20-year level term. Actual premiums depend on health and underwriting.
Get a real quote for this amount
Free, no obligation. A licensed New York Life agent reviews your details before quoting — the calculator does not collect them.
How this works: education is estimated at $30,000 per child, final expenses at $10,000 (the U.S. median funeral with burial is about $8,300 before cemetery costs). The result is a planning figure, not a quote or a recommendation.
The method
What the calculator is actually adding up
It uses the DIME method — Debt, Income, Mortgage, Education — the same framework many financial professionals use because it maps to real bills rather than a salary multiple.
| Letter | What it covers | How to estimate it |
|---|---|---|
| D — Debt | Credit cards, car loans, student loans, medical bills | Total the balances. Add 10–20% if you want interest covered too. |
| I — Income | The paycheck your household would lose | Annual income × years of support. Ten years is a common floor; 15 is common with young children. |
| M — Mortgage | Keeping the family in the home | Remaining principal balance, not the original loan amount. |
| E — Education | College or trade school for each child | Roughly $30,000 per child for in-state public tuition and fees, more for private. |
| + — Final expenses | Funeral, burial or cremation, outstanding bills | About $10,000–$15,000 in most U.S. markets. |
| − — Existing resources | Group life, individual policies, savings you would spend | Only count what your family could actually access. |
Three worked examples
New parents, one income
$75,000 income, $240,000 mortgage, $15,000 debt, 2 children, $50,000 group life.
Need = $750,000 + $240,000 + $15,000 + $60,000 + $10,000 = $1.075M. Minus existing $50,000 = $1.025M of new coverage. That sounds large, but it is the cost of replacing one income for a decade while keeping the house.
Dual income, no children
Two earners at $90,000 each, $320,000 mortgage, $20,000 debt, no children.
If each partner could cover the mortgage alone, the need is mainly debt plus a few years of income — often $400,000–$600,000 each rather than $1M. Two incomes change the math substantially.
Single parent
$60,000 income, renting, $8,000 debt, 1 child, $25,000 group life.
Need = $600,000 + $8,000 + $30,000 + $10,000 = $648,000, minus $25,000 = $623,000. A guardian's childcare costs matter as much as the mortgage here.
Get it right
What counts — and what people forget
Two households with identical incomes can need very different amounts. These are the items people most often leave out.
- Unpaid work has a price. Childcare, transport and household management can run $30,000–$60,000 a year to replace.
- Debt does not disappear. Credit cards and student loans survive you; co-signers can be pursued for them.
- Group life is not portable. Leaving a job usually ends the coverage, often exactly when a health issue makes new coverage expensive.
- Education inflates. A figure that looks generous today may not cover four years of tuition in 2040.
- Benefits are not instant. Claims typically take weeks, so a cash buffer of a few months of expenses matters.
- Business owners need a second number. Key-person coverage and buy-sell funding sit outside the household calculation.
The 80% rule. If the full DIME number feels unaffordable, do not buy nothing. Insure 70–80% of the need with a term policy you can actually keep, then add more when income rises. A policy that lapses protects no one.
The ladder strategy. Some families stack two or three term policies with different end dates — for example $500,000 for 30 years and $250,000 for 15 years. It usually costs less than one large 30-year policy and matches coverage to when each need expires.
Do not insure the mortgage twice. Mortgage protection insurance often costs more per dollar of coverage than term life and pays the lender, not your family. Compare before you sign anything at the closing table.
Avoid these
Five mistakes that leave families short
Buying only what work provides
A flat $20,000 or 1× salary covers a funeral and a few months of bills. It rarely replaces an income for a decade.
Choosing a round number instead of a real one
$250,000 is a common default, not a calculation. Two children and a mortgage can push a real need past $1M.
Insuring one parent and not the other
If the stay-at-home parent died, the surviving parent would likely need paid childcare or reduced hours. That is an insurable loss.
Forgetting to update beneficiaries
A divorce, a new child or a death in the family can leave the wrong person named. Review beneficiaries after every major life event.
Waiting for the perfect moment
Every birthday raises the price, and a new diagnosis can change your eligibility entirely. The cheapest policy is usually the one bought while healthy.
Know your number? Get the real price.
A licensed New York Life agent can turn this estimate into an actual premium for your age, state and health — usually in one conversation.
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Coverage math, answered
What is the DIME method?
DIME stands for Debt, Income, Mortgage and Education. Add those four numbers plus final expenses, then subtract the coverage and savings your family could already use. The result is the amount of new coverage to consider.
Is 10 times my salary enough?
Ten times income is a reasonable starting point, but it can be too low for a family with a large mortgage, several children and a single earner. It can be more than necessary for a single person with no dependents. Run the numbers rather than relying on the rule.
Should I count my 401(k) or savings?
Only assets your family could realistically spend, and only if you are comfortable using them for that purpose. Many people leave retirement accounts out entirely, because a surviving spouse still needs them later.
Does a stay-at-home parent need coverage?
Usually yes. Replacing childcare, transport and household work can cost $30,000 to $60,000 a year, so $250,000 to $500,000 of coverage is common even with no salary to replace.
How often should I recalculate?
After any of these: a birth or adoption, a marriage or divorce, a home purchase or refinance, a significant raise, a job change, or a new diagnosis. A quick annual review takes five minutes and prevents the two most common gaps — too little coverage and stale beneficiaries.
What if I cannot afford the full amount?
Buy a portion you can sustain. A $400,000 policy held for 20 years is worth far more than a $1M policy that lapses in year three. You can also ladder coverage: a large 30-year policy plus a smaller 15-year policy usually costs less than one big long policy.