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Quick answer
What does the Life insurance needs calculate?
What coverage gap remains after assets and debts? This calculator uses annual income to replace, years of support, mortgage and other debts, education, care & final costs, savings and existing coverage, and income replacement share to estimate coverage gap estimate immediately in your browser.
With the values currently entered, the result is $874,000.00 — estimated coverage gap. It also shows income support, debts & future costs, and assets & existing coverage.
How to use the Life insurance needs
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Annual income to replace
- Years of support — entered in years
- Mortgage and other debts
- Education, care & final costs
- Savings and existing coverage
- Income replacement share — entered in %
Life insurance needs formula
Income support + debts + future costs − available assets and coverage
Assumptions
- Income support is not discounted for investment returns.
- Needs change over time and by household.
Verify the inputs
Authoritative sources
These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.
Regulator-backed explanations of policy types, claims, terms, and state insurance contacts.
Insurance consumer protectionEuropean Insurance and Occupational Pensions AuthorityScope: European UnionEU consumer information and supervisory guidance for insurance products and protections.
Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.
Practical guide
Life insurance needs example and edge cases
What coverage gap remains after assets and debts? Let's use a concrete example, then look at the assumptions that can move the answer.
Example: A practical life insurance needs scenario
For this example, use annual income to replace of 85,000, years of support of 12 years, mortgage and other debts of 280,000, education, care & final costs of 120,000, savings and existing coverage of 240,000, and income replacement share of 70 %. These are starting values, so replace them with numbers that match your situation.
- Annual income to replace
- 85,000
- Years of support
- 12 years
- Mortgage and other debts
- 280,000
- Education, care & final costs
- 120,000
- Savings and existing coverage
- 240,000
- Income replacement share
- 70 %
Calculated result$874,000.00estimated coverage gap
Start with estimated coverage gap. Then check income support, debts & future costs, and assets & existing coverage to understand what sits behind the main result.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Read the main result first. The supporting figures for income support, debts & future costs, and assets & existing coverage explain how the estimate is built.
- The method is Income support + debts + future costs − available assets and coverage. Keep the units consistent and use values from the same time period.
Edge cases worth checking
When annual income to replace is unusual
Income support is not discounted for investment returns. Double-check this input before relying on the result.
When income replacement share is uncertain
Needs change over time and by household. Run a lower and higher value to see a useful range.
What changes the result most
Annual income to replace
Use a current amount for annual income to replace. Include fees or recurring costs that belong in the same figure.
Years of support
Keep years of support on the same time basis as the other inputs. Monthly and annual values are easy to mix up.
Mortgage and other debts
Use a current amount for mortgage and other debts. Include fees or recurring costs that belong in the same figure.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Annual income to replace: 10% lower
76,500$802,600.00estimated coverage gap
Annual income to replace: 10% higher
93,500$945,400.00estimated coverage gap
Years of support: 10% higher
13 years$933,500.00estimated coverage gap
Common mistakes
Check annual income to replace
Income support is not discounted for investment returns. Make sure this matches the number you enter.
Keep income replacement share consistent
Needs change over time and by household. Use the same units and time period throughout the calculation.
Do not rely on one life insurance needs scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
What coverage gap remains after assets and debts?
Use it to set a starting budget, then confirm real quotes and each person’s needs.