How Much Life Insurance Do I Need?

Your financial situation is unique, and the decision to buy life insurance is guided by your specific situation and the things that matter to you. Before deciding which life insurance product you want, whether it’s permanent life insurance, term life insurance or even a combination of both, you need to figure out how much life insurance you need. Using our Life Insurance calculator, you can get an estimate to determine how much life insurance coverage might be right for you. We’ll walk you through the steps and how to use our life insurance calculator below.

How to Use the WoodmenLife Life Insurance Calculator

Once you’ve decided to buy life insurance, follow these steps with our life insurance calculator to predict how much coverage you might need.

Step 1: Getting Started

Enter your age

According to the life insurance research organization, LIMRA, nearly 4 in 10 insured consumers wish they had purchased their policies at a younger age.* The younger and healthier you are, the less you could pay in premiums.

Enter your gender

In 2021, LIMRA reported that women were less likely than men to own life insurance. Just 47% of women own life insurance, compared with 58% of men.*

Enter your marital status

Your marital status doesn’t typically affect your premium rate when it comes to life insurance since it is based on factors like age, gender and medical history. The life insurance calculator asks about marital status to help us understand who you are looking to protect.

Enter the number of children

LIMRA reports that more than one-third (35 percent) of married couples with dependent children want to speak with a financial professional about their life insurance needs. Life insurance for parents can offer peace of mind knowing your children can be protected for decades to come.

Enter Home Ownership Status

Depending on whether you rent or own your home, the life insurance calculator can help determine how much coverage you may need to take care of your family.

Enter your State

Where you live can determine which policies are available to you based on what products are approved in your state.

Step 2: Final Expenses

How much would your family need to pay for your funeral? According to the 2021 National Funerals Director Association (NFDA) Study, the national median cost of a funeral is $7,848, and the median cost of a funeral with cremation is $6,970. Enter an estimation of what you think your final expenses will cost.

Steps 3-4: Mortgage and Debt

What is your current total amount of debt? This can include any financial debt including mortgages, credit card debt, car loans, or any kind of debt your family would need to pay after you are gone.

Step 5: Education Expenses

How much would you need to cover education expenses for your children? According to the College Board’s Trends in College Pricing 2021, the estimated average tuition for full-time in-state students at public four-year-in-state colleges and universities is $10,740 per year. The estimated average tuition for full-time students at four-year out-of-state colleges and universities is $27,560 per year.

Step 6: Living Expenses

In the event of your death, how long would your loved ones (spouse, children or others) need funds to replace your income to cover ongoing monthly living expenses such as groceries, utilities, vehicle or transportation costs, clothing, and entertainment?

Step 7: Current Assets

About how much do you have in savings and investments? These assets can include checking/savings accounts, mutual funds, bonds, individual retirement accounts (IRAs), or 401(k) accounts. Enter a total amount for your current assets.

Request a Quote for Life Insurance

Our life insurance calculator takes less than five minutes to complete. Based on your answers, you’ll receive a personalized estimate on the screen and a local Representative will call to help you find the right life insurance policy for your situation. For additional information, click here to find your local Representative.

About the Life Insurance Calculator:

This is an estimate only and not an offer of insurance coverage. Please consult with your insurance professional to determine the amount of life insurance protection that may be appropriate for you. Information and interactive calculators are hypothetical and for illustrative use only. This analysis is based solely on the information you provide. This content is for general educational purposes only. It is not intended to provide fiduciary, tax, or legal advice. All products may not be available in all states.

*2021 Insurance Barometer Study Reveals Common Misconceptions That Prevent Americans from Getting Life Insurance They Know They Need.” LIMRA.com, https://www.limra.com/en/newsroom/news-releases/2021/2021-insurance-barometer-study-reveals-common-misconceptions-that-prevent-americans-from-getting-life-insurance-they-know-they-need/. 18 October 2021.

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