How much life insurance do I need? A calculator with three methods
This life insurance calculator answers “how much life insurance do I need?” three ways: the human life value (HLV) of your future income, the needs-based DIME method (debt, income, mortgage, education) and the simple 10× income rule. It takes off the cover you already have and the savings your family could use, and suggests how much extra term insurance to buy and for how long.
There is no form to fill in for a call-back: nothing is sent anywhere and no phone number is asked. It works in dollars, rupees or pounds. Every number is an assumption you can change, and the result is a starting point, not insurance or financial advice.
How to use the Life Insurance Calculator (Human Life Value & DIME)
- Choose your currency, enter your age and the age you expect to stop working.
- Enter your yearly income after tax, how fast it might grow, the share you spend on yourself and the return a lump sum could earn.
- Fill in debts, the mortgage, education costs and final expenses, and how many years of income your family would need.
- Enter the life cover you already have and the savings your family could draw on.
- Pick the method for the suggestion, then read the extra cover, the method table and the cover-by-age table.
Life Insurance Calculator (Human Life Value & DIME) features
Human life value
Present value of your future income, less what you spend on yourself, until retirement.
DIME needs method
Debts, years of income, mortgage, education and final expenses, minus savings and cover.
Cover by age
How the human life value changes every five years — useful when you buy later or top up.
Term length
A suggested policy term that runs to your retirement age.
Private and free
Runs in your browser in $, ₹ or £, with no sign-up or phone number.
The methods, with a worked example
Human life value = the sum, for each working year left, of income × (1 − self-spend share) × (1 + growth)year − 1 ÷ (1 + return)year. A 35-year-old earning $80,000 after tax who spends 25% on themselves and retires at 65 contributes $60,000 a year; with no growth and a 5% return that is worth $922,346 today.
DIME adds up what the family would face: $15,000 of debts + $80,000 × 10 years of income + a $250,000 mortgage + $100,000 for education + $15,000 final expenses = $1,180,000. Less $100,000 of existing cover and $50,000 of savings leaves $1,030,000, so the tool suggests about $1,050,000 of new cover.
| Method | Best for | Watch out for |
|---|---|---|
| Human life value | Replacing your earning power in full | Very sensitive to the return and growth you assume |
| Needs-based (DIME) | Covering specific bills and goals | Easy to forget inflation on education and living costs |
| 10× income | A quick first check | Ignores debts, savings and how many years are left |
Choosing a term insurance cover amount
- Term insurance is the cheapest way to buy a large sum assured; match the term to the years your income is needed — usually to retirement.
- Count only liquid savings your family could really use; leave out your home and retirement accounts you want to keep.
- Review the cover after big events: a new child, a bigger home loan, a pay rise. The cover-by-age table shows how the need falls over time.
- In India, 10–15 times yearly income is a widely quoted rule of thumb; insurers also cap the cover they offer by your age and income.
- See how your other money is building with the net worth calculator and plan later years with the retirement calculator.
Life Insurance Calculator (Human Life Value & DIME) FAQ
How much life insurance do I need?
Enough to pay off what your family would owe and to replace the income they rely on for as long as they need it. The DIME and human life value results above give two independent answers; many people buy a figure between them.
What is a human life value calculator?
It estimates the economic value of your future earnings to your family: the income you would bring home until retirement, minus your own spending, discounted to today.
Is this a term insurance calculator?
It calculates the cover amount (sum assured) and the term, not the premium. Premiums depend on your age, health and the insurer; use the result to compare quotes.
Does the cover I need change with age?
Yes. With fewer working years left the human life value falls, and debts usually shrink, so the need is highest when you are young with dependants and loans.
Why do I not need to give a phone number?
Because nothing is sent anywhere. The calculator runs entirely in your browser.
Should I include my employer’s group cover?
Include it as existing cover, but remember it usually ends when you change jobs; many people do not rely on it fully.