Do you know how much life insurance is the right amount for you? Take a few minutes walking through our Life Insurance Calculator for the answer.Â And even if you have life insurance today, is it enough? It may cover your familyâ€™s expenses so take time to make sure you have enough life insurance coverage. About 1 in 5 with life insurance admit they do not have enough.
No matter your situation, when it comes to figuring out how much life insurance is the right amount, our Life Insurance Calculator can help you get organized around your life insurance needs and recommend a coverage amount.
Understanding your needs goes a long way in helping one of our licensed SelectQuote agents assist you in finding the right policy and get you a quote for life insurance. We shop many highly ratedÂ life insurance companies to save you time and money.
Life Insurance Calculator: Steps to Life Insurance Coverage
Our Life Insurance Calculator walks you through a few simple steps to recommend a coverage amount and a term. If you know the answers to some basic questions, it will take less than a couple of minutes.
The first and most critical question to answer will be determining whether you have dependents who would require financial security if youâ€™re no longer around.
Remember, â€œlife insurance isnâ€™t for you, itâ€™s for your loved ones.â€
Hereâ€™s a quick breakdown of the calculator so you have the information ready.
Step 1. Do You Need Life Insurance Coverage?
As previously mentioned, does anyone depend on you financially? A simple yes/no question on this step. If the answer is yes, you definitely want to complete the calculator.
Step 2. Tell Us About Yourself
Here, youâ€™ll want to provide a general idea of your annual income. The information helps us determine the money that would have to be replaced in the event of your death.
Step 3. Tell Us About Your Family
When it comes to your family, weâ€™ll have a few questions:
- Do you currently have or are you planning on having any children?
- If you currently have children, how old is your youngest?
- Any other dependents?
Weâ€™ll ask these questions because many term life insurance policies will be set to expire close to achieving some major financial life events. Paying off your mortgage is one â€” more on that in a minute. And the date you become an empty nester, when your kids are no longer dependent on your income, will be the other.
Step 4. Tell Us About Your Assets
On this step of the Life Insurance Calculator, weâ€™re trying to quickly assess how much wealth youâ€™ve already accumulated that you can pass on to your survivors.
Questions in this section include:
- How much do you have in savings and liquid assets? (You wonâ€™t include retirement savings here.)
- How much do you have in retirement savings and college funds?
- Do you currently have any life insurance? How much?
Step 5. Tell Us About Your Debts
We canâ€™t just determine your assets, we also need to get a sense of your liabilities. Mortgage payoff date is included here to help recommend the length of a term life insurance policy.
- Do you currently have a mortgage?
- What are your monthly mortgage payments?
- How many more years do you have on your mortgage?
- Do you have any other debt? What is the total amount of debt?
Step 6. Tell Us About Your Preferences
Finally, weâ€™ll ask about your life insurance objective. In short, weâ€™ll ask how much financial security or cushion you are seeking for your family. Think in terms of:
- A lot
- Somewhere in the middle
- A little
Ta Dah â€¦ Your Life Insurance Recommendation
After you click the â€œCheck Out Your Resultsâ€ button, a recommendation screen appears with a proposed life insurance policy value and coverage duration or term. Weâ€™ll also show you the calculations or assumptions for how the policy value was determined.
With the information from our Life Insurance Calculator, youâ€™re ready to contact a licensed SelectQuote agent for a life insurance quote or more information on different life insurance options and policies.
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