Life Insurance Calculator — How Much Term Life Insurance Do I Need?

월 소득 (원)

원

부양 필요 기간 (년)

년

부양 가족 수

명

현재 부채 총액 (원)

원

주택담보대출, 신용대출 등 합산

현재 보유 자산 (원)

원

현금·예금·투자자산 (부동산 제외)

자녀 교육비 예상 (원)

원

대학까지 1인당 약 5천~1억 예상

Share with friends

How to use

1 Enter your total debts (credit cards, student loans, auto loans — but exclude mortgage which goes separately).
2 Enter your annual income and the years your family would need income replacement (typically until youngest child is 22).
3 Enter remaining mortgage balance.
4 Enter expected college education cost per child × number of children. Average US 4-year public in-state $108K, private $215K.
5 Click Calculate to see total recommended coverage. Buy 20 or 30-year level term to lock in the lowest rate. Healthy applicants under 50 should compare quotes from 5+ insurers via Term4Sale, PolicyGenius, or NerdWallet.

DIME Method Breakdown

Component	Calculation	Example: $80K income, 2 kids
D — Debts	Credit cards + student loans + auto + other (not mortgage)	$30,000
I — Income	Annual salary × years until kids independent	$80K × 20 = $1,600,000
M — Mortgage	Current mortgage balance	$300,000
E — Education	College cost × number of children	$130K × 2 = $260,000
Total		$2,190,000

Term Life Premium by Age and Coverage (Healthy Non-Smoker, 20-year level term)

Age	$500K coverage	$1M coverage
25	$15-25/mo	$25-40/mo
35	$20-35/mo	$30-55/mo
45	$45-75/mo	$70-130/mo
55	$120-200/mo	$220-400/mo
65	$400-700/mo	Not always available

Term vs. Whole Life

	Term Life	Whole Life
Premium	Cheap ($25-100/mo)	Expensive ($500-1,500/mo)
Coverage period	10/15/20/30 years	Lifetime
Cash value	None	Yes — but grows slowly
Best for	Most people, most situations	Estate planning, special needs trusts, business buy-sell

Major fiduciary recommendations (NerdWallet, Bogleheads, Dave Ramsey, fee-only advisors) consistently recommend "buy term and invest the difference" for nearly all consumers. Whole life is appropriate for 5-10% of buyers in specific estate or business situations.

Key Coverage Decisions

(1) Term length: Match to youngest child reaching 22 + a few years buffer. 20-year term is most popular. (2) Face amount: 10-12× income for primary earner; 5-7× for secondary earner. (3) Insurer: Choose A-rated or higher (A.M. Best). Major insurers: Banner, Protective, AIG, Pacific Life, Mutual of Omaha, Northwestern Mutual. (4) Riders: Living benefits / accelerated death benefit (often free), waiver of premium (modest cost), child rider (usually unnecessary).

FAQ

Q How much life insurance do I need?

Most fee-only advisors recommend 10-12× your annual income for primary breadwinners with dependents. The DIME method is more precise: Debt + (Income × years until kids independent) + Mortgage + Education. For an $80K earner with 2 kids and $300K mortgage: about $2 million in 20-year term life.

Q Should I buy term or whole life insurance?

Term life for nearly all consumers. A healthy 35-year-old can get $1M of 20-year term for $25-50/month; equivalent whole life is $700-1,200/month. The premium difference invested in low-cost index funds typically beats whole life's cash value by hundreds of thousands over 30 years. Whole life makes sense only for specific estate/business situations.

Q How much does term life cost for a 35-year-old?

Healthy non-smoker, 35 years old, 20-year level term: about $25-40/month for $500K coverage, $30-55/month for $1M. Tobacco use roughly doubles premium. Pre-existing conditions (high BP, cholesterol, type 2 diabetes) raise premiums 25-100%. Compare quotes from 5+ insurers via Term4Sale or PolicyGenius.

Q When should I buy life insurance?

When you have dependents who would suffer financially without your income — typically when starting a family, buying a home, or supporting aging parents. Lock in coverage while you're young and healthy; rates rise dramatically with age and any new health diagnosis. A healthy 25-year-old pays ~half the premium of a healthy 35-year-old.

Q Do stay-at-home parents need life insurance?

Often yes — childcare and household services would cost $40K-$100K/year to replace. A $250K-$500K policy on the stay-at-home parent provides funds for childcare, housekeeping, and other support. Premium is modest because risk is lower (no income loss), but the practical coverage need is real.

Q Is employer life insurance enough?

Usually not. Most employers provide only 1-2× annual salary, terminated when you leave the job. The 10-12× rule means you need 5-10× more on a personal policy. Use employer life as a supplement only; primary protection should be a personally-owned 20- or 30-year term policy.

Q Are life insurance death benefits taxed?

Federal: no — death benefits are received income-tax-free by beneficiaries, regardless of policy size. Federal estate tax may apply if total estate exceeds $13.99M (2026 threshold) and policy is included in estate. State: most states don't tax death benefits, but a few have estate or inheritance taxes that may apply.

Q How does the underwriting process work?

Apply with insurer, complete medical history form, take a free paramedical exam (height/weight, blood pressure, blood and urine sample), and wait 4-6 weeks for underwriting decision. Some insurers offer "no-exam" policies (Bestow, Ladder, Haven Life) using only data; faster but premiums slightly higher. Decline due to recent health events typical; reapply after 6-12 months once stabilized.