Online life insurance calculator
Ready to start shopping for life insurance? Knowing just how much life insurance you need and comparing rates from different insurers will get you the best policy. Use our free life insurance calculator to calculate your policy’s cost and get just the right amount of coverage you need.
- updated last on March 3, 2023
Get the best life insurance rates with a simple life insurance calculator
When thinking about life insurance and how much you will need, the first thought is going to a website and using an online life insurance calculator. If you’ve ever asked yourself the question, “how much life insurance should I have? I really need to safeguard my family’s future, but at what cost will this be to me right now?” then our how-to guide about calculators is the place for you.
The calculator will target a series of questions or evaluate the financial information that you are going to provide to it. Information like your current personal income.
You are supported by your personal information, like name and age. Once you have put some details in the calculator the information is crunched to provide a needed insurance amount, for a more detailed summary of how much it will cost, contact a Coach B. insurance agent, or use our online quote engine. We’ve put together a selection of different kinds of commonly asked questions that you will see on most life online calculator. We’ll explain the reasoning on why you’re being asked these questions and the way it relates to your life insurance needs. Try using a single premium life insurance calculator in this situation.
What is your spouse’s current age?
So at Coach B. life insurance, our calculator will need to ask the age of your spouse. Statistics suggest people in the age range of 25 to 50 will be looking to buy some life insurance coverage. Data shows that it begins to decline after age 50 in some regards.
Ideally, you’ll want your life insurance coverage to last to a minimum of retirement age. Currently, to receive full Social Security benefits, the age is 66 if you were born between 1943-1957. If you were born in 1960 or later, the age is 67 to gain full Social security benefits and is projected to rise over time.
What’s your spouse’s annual income?
So in this selection of the calculator, it will be the annual income of your spouse, Including any side businesses, work-related income, or income from private properties.
Funeral cost & estate taxes
Different types of life online insurance calculators will have sections for other miscellaneous expenses, such as giving to a charity cause. Ours will give you an option for specifically funeral costs, or other small final expenses. It will take the weight off your family’s shoulders, allow them to grieve, also look at considering potential medical bills that might not have been picked up by a health insurance plan.
Compare the market, right here.
Coach B. saves you up to 60% by comparing the top-rated companies on our quote and apply platform.
Pay off non-mortgage debts
So when it comes to life insurance, remember when you sadly pass that all the debts and mortgages will go to the spouse. So, if for instance, the loss of income due to your spouse’s passing, it’s best to have enough life insurance to cover your non-mortgage debts. Try using a 30-year term life insurance calculator for a 30 year mortgage.
Amount of cash in emergencies
They say you will need six months’ expenses in emergencies, with our calculator, you can add this to your life insurance needs analysis. It’s recommended to add a few hundred dollars if you’re starting and add more as you go along.
Expected average annual living expenses
What are your annual living expenses? Some experts will suggest that 50% of your income should go towards this, but in this day and age that’s easier said and done, so I suggest writing down all your expenses. I feel it would be a good idea to add $30 on top of electric bills, and prices fluctuate monthly.
Your average annual income after taxes
Annual income after tax is the amount of income you can earn in one financial tax year. Your annual income will include and not limited to, bonuses, commissions, overtime, and tips earned.
Annual social security benefits
To add up your social security benefits, it’s pretty simple to do. You get up to four social credits a year, one thousand dollars a year will give you one credit, to get the full four credits you will need to make four thousand dollars per year over the next ten years of working, you can get at least some Social Security back.
Spouse is the most important part of deciding on an insurance plan
Any couple will need to decide between them, nothing is smooth sailing, and having a plan b isn’t going to hurt anyone, especially with a small amount put away each month for that rainy day.
So it’s essential to keep your spouse or partner in the loop when deciding to purchase a life insurance policy.
Value of current liquid assets ($ total of savings, investments, etc.)
Assets are cash on hand or an asset that can be easily converted into cash. An asset that can be converted quickly into cash is similar to cash itself. These types of assets can be sold with little impact on their value—gold, Stocks, and so forth.
Expected survivor’s investment strategy:
So when that time comes and you or yours is now alone, what is your escape plan?
Someone will be left with all the debt. The cars, credit cards, mortgages? It is sad to think when one passes a huge chunk of income if not all of the yearly income has also gone.
How does a life insurance payout calculator work?
If you have just finished completing your life insurance needs analysis. Then you have your ideal amount of coverage that you need, a life insurance quote calculator will be the next step to getting a personalized life insurance quote.
Using a life insurance monthly cost calculator is a fairly straightforward process and does not require as many questions and answers as the needs calculator. The entire process can take less than 1-2 minutes, depending on the quote calculator.
Most life insurance quote calculators work quickly by computing user-submitted data against rate tables that have been set by each life insurance company and their products.
The data includes variables such as age, gender, tobacco use, height and weight, state of residence, type of life insurance, and an amount of death benefit coverage being requested. The result provides an estimated life insurance cost from every participating life insurance company within the quote calculator.
Do online life insurance calculators cost a fee to use?
No! You will find that the vast majority are 100% free, Be warned if you do come across a website or agency asking for a fee it will probably be a scam to harvest your financial information.
The best online term Life insurance calculator free will also never ask you for information such as your social security number, address, credit card information, or bank account details. It is only ever asked when the deal is going to be put through. Please find a certified Life Insurance agent to process your life insurance application.
Life insurance needs calculator
Frequently Asked Questions
How to calculate life insurance costs?
Several factors, including age, health status, and type of coverage, determine the cost of life insurance. Premiums are calculated based on the insured's potential risk - the likelihood that they will die and require a life insurance policy payout. Other factors, such as tobacco use, life expectancy, and earnings potential, can also influence costs.
What is the formula for calculating life insurance?
The formula for calculating life insurance is based on various factors, such as the policyholder's age, health, financial responsibility, and dependents. Other factors that are considered include debt levels and desired coverage amounts. To calculate an individual's life insurance needs, online calculators provide estimates of how much coverage is appropriate.
What's a good rule of thumb for manually calculating how much life insurance I need?
A good rule of thumb for manually calculating how much life insurance you need is multiplying your current annual income by 10-20 and adding any outstanding costs or debts. This will give you a rough estimate of how much coverage you should have to meet your family's needs in the event of your death.
About Coach B.
After starting his financial career with Phoenix Home Life Insurance Company back in 1992, Scott decided he wanted to provide people with an easier and more enjoyable way to buy life insurance. That was the start of Coach B. Life Insurance, whose mission is to be transparent, honest, and helpful to customers — without ever bugging or pushing them.
In the years since then, he has worked tirelessly to improve the process of shopping for insurance. His goal is to make sure that everyone who comes to Coach B. — whether they end up buying a policy or not — has the best possible experience.
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