Life Insurance Calculator
As your lifelong wealth management advocates
As your lifelong wealth management advocates
A life insurance calculator is a tool designed to help individuals estimate the amount of life insurance coverage they need to secure the financial future of their dependents in case of unforeseen circumstances. This calculator considers factors such as current income, expenses, liabilities, savings, and long-term financial goals to determine an adequate coverage amount.
To provide an accurate estimate, the calculator typically asks for the following details:
Using a life insurance calculator is straightforward. Here's a step-by-step guide:
Step 1: Provide Personal Information
Enter basic details such as your age, gender, and marital status. This helps the calculator determine factors like policy term and dependents.
Step 2: Enter Income and Expenses
Fill in your annual income and household expenses. This gives the calculator an idea of the income your dependents need if you’re no longer around.
Step 3: List Liabilities and Financial Goals
Provide details about outstanding loans (e.g., home loan, car loan) and future financial goals (e.g., children’s education or marriage).
Step 4: Include Current Savings
Enter the value of your current savings and investments, which can offset the coverage needed.
Step 5: Select Policy Term
Choose the duration for which you want the life insurance coverage (e.g., until your children are independent or until you retire).
Step 6: Get Results
The calculator will analyze the data and provide:
Clarity: Simplifies complex financial calculations.
Efficiency: Saves time by providing instant results.
Accessibility: Available online, often free of charge.
Customizable: Allows you to adjust inputs and recalculate based on changes in financial circumstances.
Confidence: Helps you make informed decisions about your financial protection.