Term Life Insurance Calculator
- Before you buy life insurance, you need to know how much you need so you don’t end up overpaying for coverage! Everyday Life’s term life insurance calculator is needs-based, objective, anonymous, and helps you save money!
- You can use the results from our Needs Assessment Tool to purchase a plan with Predictive Protection™, which is predictive technology that automatically updates your coverage over the life of your policy.
Shopping for a life insurance policy isn’t as fun as shopping for a new couch or a new car, but it is a lot more confusing – and potentially, a lot more consequential for your spouse, kids, and loved ones.
Most people understand why they need life insurance (to protect their beneficiaries from the cost of their death and lost income in case they pass away prematurely), but most people also don’t understand life insurance in general. They don’t know how much coverage is too much or too little…they don’t really know what’s a good price to be paying for it…they don’t know what kind of life insurance to buy…and the list goes on.
It’s okay if you’re in the same boat, because you’re not alone! The problem is if you’re shopping for a plan, most companies will assume that you already know all of these things. And if you just guess when you answer how much coverage you need, you will probably end up either underinsured or overpaying for more than you actually need.
There are a few ways to figure out what amount of coverage is correct for your unique situation.
You could use the DIME method – stands for “debt, income, mortgage, and education”. You add up how much debt you would have if you passed away, multiply your income by the number of years your family would be reliant on it, add the mortgage, and add the amount you would want to contribute to your child’s education. That total is how much coverage you need. Another popularly prescribed method is to multiply your income by 10, and that amount is how much coverage you should get.
Neither of these methods is much better than guessing, though. The multiplication method is pretty vague and doesn’t work for stay-at-home parents (whose family would definitely be hurt financially by their death if they had to replace the support and childcare they provided). The DIME method is more specific, but doesn’t take into account your family’s savings and other existing resources. You need a more specific, easier way of figuring out how much you need, which is where Everyday Life’s term life insurance calculator comes in!
Meet Our Needs Assessment Tool!
In order to take the guesswork out of the process, we created a term life insurance calculator that is “needs-based”. That means that it takes into account exactly what your unique life needs are, and only recommends the amount that a qualified financial planner would also recommend. If you don’t need life insurance, the calculator will tell you that too – it’s objective!
Everyday Life’s Needs Assessment Tool is the only term life insurance calculator of its kind in the entire industry. It takes only 2-3 minutes to complete, and you can use it 100% for free and 100% online – you don’t have to provide any contact information or be bothered by pushy salespeople. Most customers who use it end up with a term plan that costs them less than 1% of their income!
Here’s how our term life insurance calculator works: you answer a few questions about your family and your financial situation (how many people depend on you, how much you make, what your savings look like, etc.). Based on the information you enter – and remember, no email address or phone number required – you get a personalized plan recommendation for an amount of coverage that will always reflect your unique needs at any point in your plan, so you never overpay and always have peace of mind that your family is protected!
Try our Needs Assessment Tool now at https://insurance.everydaylifeinsurance.com/quote/dependents?.
The perfect policy is just 3 steps away.
Let our technology assess your unique needs - Takes 2 minutes and no contact info required.
Review & Refine
Read your personalized recommendation, explore options and confirm your plan - quick and easy!
Finish your application online with our underwriting partner.
Takes 10 minutes and may get instant approval!
How To Interpret Your Personalized Recommendation Given By Our Term Life Insurance Calculator
When you finish your Needs Assessment, you will receive a result that looks something like this:
Those are not the numbers you would receive, but let’s just say this was your result (specifically, this was from a Needs Assessment for someone supporting two young children and an aging parent, making $60K a year with 10K left in student loans to pay off – suppose for the purposes of the illustration that this is your situation).
This means that according to our technology, based on the information you provided, your recommendation is for $950,000 worth of peak coverage in a 20 year plan. That’s how much your family would need to replace your support and not suffer financially if you passed away in the next 20 years.
However, you won’t need the same amount of coverage at every point in your plan – your kids will grow up, you’ll pay off more on the mortgage, and your savings will grow. So our term life calculator has your coverage stepping down to $200,000 after 10 years and then down to $100,000 after 15 years in order to help you avoid overpaying! The premium you would pay monthly for that coverage if you purchased a plan through Everyday Life would also decrease, saving you $12, 513 over the life of the plan compared to “flat” coverage.
Thanks to predictive technology known as Predictive Protection™, your plan’s coverage would automatically decrease over the years based on important life events like kids graduating and retirement (you won’t have to remember to update it!)
Your life isn’t “one-size-fits-all”, and your life insurance policy shouldn’t be either. Contact us today to learn more about what we do or take our Needs Assessment Tool and get your personalized plan recommendation!