Life Cover Gap Calc

Life insurance U.S. insurance

How much additional life coverage could your family need?

Estimate the amount needed for income replacement, debt, and one-time expenses. Subtract the savings and life coverage already available to your family.

Term Life Insurance Coverage Gap Calculator

Enter figures from your policy, quote, or benefits summary.

Enter the annual amount your household would need.

Use a horizon that fits the family's ongoing needs.

Include only debts you intend to repay with these funds.

For example, final expenses or an education fund.

Exclude savings set aside for other needs.

Use the death benefit you expect will be available.

Worked example

See what the numbers mean

$65,000 per year for 15 years plus $275,000 in debt and one-time needs totals $1.25 million. Subtracting $300,000 in savings and existing coverage leaves $950,000.

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Behind the estimate

Method & sources

Where to find your figures

Start with the income your household would need to replace each year, then list debts and one-time expenses. Count only savings earmarked for this purpose and existing benefits you expect to be available.

How the math works

Multiply annual income replacement by the number of years. Add debt and one-time expenses. Subtract earmarked savings and existing coverage, with a minimum gap of zero.

Worked example

$65,000 per year for 15 years plus $275,000 in debt and one-time needs totals $1.25 million. Subtracting $300,000 in savings and existing coverage leaves $950,000.

What this estimate covers

This uses flat dollars without investment returns or inflation. Avoid counting the same expense in both annual income replacement and one-time needs. Check when current coverage expires or ends with employment.

Source notes

Consumer guidance reviewed .

Before you decide

Common questions

How many years of income should I enter?

Think about when the household would need less income replacement, such as when dependents become financially independent. Test different horizons to see how the estimate changes.

Should I count employer-provided life insurance?

Include the benefit you expect your family could actually receive for the scenario. Check what happens to the coverage if you leave the job and when the benefit expires.

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