Calculating How Much Life Insurance You May Need

Life Insurance Calculator It's important to find out how much life insurance coverage best fits your needs. Take into account the following key factors to help calculate your life insurance needs:
  1. 1


    Personal debts include credit cards, car payments, lines of credit, and any other personal debts. Adding up your debts is the first step to understanding your life insurance needs.

  2. 2


    Your family depends on your income to help cover living expenses. It’s important to consider and add up how much income they would need to continue on without you, and how long they would need it.

  3. 3


    Most likely, you’d want your family to be able to maintain the quality of life you've built for them if something were to happen. What would it take for your family to pay off your mortgage if you were gone?

  4. 4


    Do your children attend public or private school? What are those costs per year? Also, think about college. Do you expect your children to pay for part of it themselves or take out loans? Do you want to leave them enough to cover it all?

Other Factors

In addition to calculating your debts, income, mortgage, and education costs, you may also want to take into account your:

  • Age and income
  • Marital status; if married, your spouse’s age and income
  • Number and ages of your children, any special needs they may have, and projections for future educational expenses
  • Family’s cost of living, including your mortgage, the amount you have in savings, as well as other outstanding debts
  • Charitable giving goals (if applicable)
  • Aging parent or disabled relative who depends on you for support
  • Final and end-of-life expenses such as medical care and funeral costs


This may look simple, but calculating one's individual situation can be fairly complicated.

That’s why we offer the personal guidance and assistance of a local Farmers insurance agent. If you're serious about protecting your family's future, talk to a local Farmers agent in your community today!

This calculator is created and maintained by Life Happens at Life Access to this calculator is provided as a convenience to you. Farmers Group, Inc., its parents, subsidiaries, affiliates, including Farmers New World Life Insurance Company and Farmers Financial Solutions, LLC, and their respective officers, directors, employers, agents and representatives, shall not be responsible for your use, non-use or reliance upon these calculators, or the accuracy of your entries or records made by you. Entry and storage of any and all data is solely your responsibility. We encourage you to always maintain a duplicate copy of all your records.

As with other helpful tools, the information provided by this calculator is for illustrative purposes only and is not intended to offer any tax, legal, or financial advice. It is always a good idea to consult the appropriate professionals for advice specific to your situation.