How Much Life Insurance Do I Need?

The amount of life insurance needed is based on how much of your monthly income you wish to provide to your family and how long you want to provide it, if you aren’t there to earn it.

There are many ways to determine how much life insurance may be appropriate to provide your family. One way is to focus on how much money would be necessary to replace your monthly income in the case of an unfortunate event. This allows you to determine how much your life insurance provides for those most important to you, by focusing on the total amount of coverage needed to provide income that your family could use monthly to supplement lost household income.

By providing your family with a monthly income in your absence, they may still be able to keep the lifestyle they have grown accustomed to and cover any other obligations your monthly income may now cover.

Simple Steps:

What is your monthly income?

How much of your income do you want to provide for your family in the event something happens to you?

How long would your family need this income in the event something happens to you?

Instructions for Life's Choices Income Simplifier.

Determine your monthly income, the amount you wish to protect and how many years you wish to protect it. For protected monthly income levels and a duration of years protected other than what's shown - we can develop a customized report.

Step 1	What is your monthly income?
Step 2	How much of this income do you want to provide for your family in the event something happens to you?
Step 3	How long would your family need this income in the event something happens to you?
Step 4	Use Life's Choices Income Simplifier Chart to determine how much life insurance you would want to provide to your family in the event that something happens to you.
Step 5	Determine the amount of additional life insurance you may need today.
		Do not enter commas or "$" in fields below.
	Life Insurance Needed (Step 5 figure)
	Current Life Insurance Coverage
	Additional Life Insurance Needed Today	$ 0

Amount of Protected Monthly Income	Years Protected
Amount of Protected Monthly Income	10 years	15 years	20 years	25 years	30 years	35 years	40 years
$2,000	$197,540	$270,384	$330,044	$378,905	$418,922	$451,697	$478,539
$3,000	$296,311	$405,576	$495,066	$568,357	$628,384	$677,545	$717,809
$4,000	$395,081	$540,769	$660,087	$757,810	$837,845	$903,394	$957,079
$5,000	$493,851	$675,961	$825,109	$947,262	$1,047,306	$1,129,242	$1,196,348
$6,000	$592,621	$811,153	$990,131	$1,136,715	$1,256,767	$1,355,091	$1,435,618
$7,000	$691,391	$946,345	$1,155,153	$1,326,167	$1,466,229	$1,580,939	$1,674,888
$8,000	$790,161	$1,081,537	$1,320,175	$1,515,620	$1,675,690	$1,806,788	$1,914,157
$9,000	$888,932	$1,216,729	$1,485,197	$1,705,072	$1,885,151	$2,032,636	$2,153,427
$10,000	$987,702	$1,351,921	$1,650,219	$1,894,525	$2,094,612	$2,258,485	$2,392,697
$15,000	$1,481,553	$2,027,882	$2,475,328	$2,841,787	$3,141,919	$3,387,727	$3,589,045
$20,000	$1,975,403	$2,703,843	$3,300,437	$3,789,050	$4,189,225	$4,516,969	$4,785,393
$25,000	$2,469,254	$3,379,804	$4,125,546	$4,736,312	$5,236,531	$5,646,212	$5,981,742
$35,000	$3,456,956	$4,731,725	$5,775,765	$6,630,837	$7,331,143	$7,904,697	$8,374,438
$40,000	$3,950,807	$5,407,686	$6,600,874	$7,578,099	$8,378,450	$9,033,393	$9,570,787
$45,000	$4,444,658	$6,083,647	$7,425,984	$8,525,362	$9,425,756	$10,163,181	$10,767,135
$50,000	$4,938,509	$6,759,607	$8,251,093	$9,472,624	$10,473,062	$11,292,424	$11,963,484

Values in this table represent the present value of a future income stream and are based on a hypothetical rate of return of 4%. If the rate of return were higher or lower, a different value would result.