How much insurance do you need?
Financial professionals estimate your life insurance needs from two perspectives:
Use the tool below to estimate your total insurance needs. Then compare the results to your current coverage. Have your needs changed?
Life Insurance Estimator
Income replacement need is calculated as: 65% of your annual income with a 4% real return on invested benefit payment (assumption: 8% nominal return – 4% inflation rate; actual returns and inflation will vary and may be negative) X number of years replaced. The calculation uses 65% of your pre-tax income because life insurance benefits are generally paid income tax-free to recipients.
PLEASE NOTE: This calculator is intended to assist you in approximating an amount of life insurance coverage if death occurred today and is not a recommendation for specific coverage amounts. The actual amount of life insurance to meet the financial needs of your estate or family may be significantly different. Millhiser Smith does not guarantee that this figure will meet the financial needs of your estate or family. You are responsible for selecting the appropriate amount of coverage. Higher coverage amounts may be selected and may result in higher premiums.