Life Insurance Optimizer
Figure out how much term life insurance your family actually needs, how long the policy should run, and whether a ladder of policies could save you money.
Where the number comes from
Your need shrinks every year
Each year you work, there's one less year of income to replace and kids get closer to independence. That's why term insurance, not permanent insurance, is the right tool for most families.
Consider a policy ladder
Instead of one big policy, stack two that expire at different times so your coverage steps down roughly in line with your need. You usually pay less in total premiums for the same protection.
How this calculator works
- Income need. We take the share of income your family needs and price it as a growing stream for the years you'd be covering. It grows with inflation and is discounted at the return survivors could earn on safe assets. Survivor Social Security is priced the same way and subtracted, but only until your youngest turns 18, since that's roughly when those family benefits stop.
- Lump sums. Mortgage, other debts, college and final expenses are added in today's dollars.
- Resources. Taxable savings count in full. Retirement accounts are reduced by the tax rate you enter because heirs owe income tax when they pull money out of pre-tax accounts. Existing coverage counts in full.
- Rounding. The gap is rounded up to the next $50,000 and the term is rounded up to a standard length (10, 15, 20, 25 or 30 years) since that's how policies are sold.
- Need over time. The timeline holds debts at today's balance, so later years are a bit conservative because your mortgage will actually shrink.
Protect the plan, not just the paycheck.
The right amount of insurance depends on everything else: your savings rate, your portfolio, your timeline and what you want your family's life to look like if you're not there. We don't sell insurance, so you'll get a straight answer. We'll build a plan around your actual liabilities. No pressure and no sales pitch.