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WealthChem

How much life insurance would your family actually need?

Rules of thumb like “10× your income” skip the parts that matter. This adds up what your family would owe and need — then subtracts what you already have.

Nothing you enter is saved or sent anywhere — the math runs entirely in your browser.

Obligations

Mortgage, car loans, cards, student loans…

Funeral and related costs — $15,000 is a common planning figure.

College or training you'd want funded, in today's dollars.

Quick cash your estate might need (taxes, upkeep). Many families enter $0.

Income

What your family would lose each year without your paycheck.

Until the kids are grown is a common anchor. Future income is discounted at a fixed 3% — see assumptions below.

What you already have

Savings and investments your family could actually spend — not the home they live in.

Total current death benefit, including any group coverage at work.

Suggested coverage range

$0 to $0

A starting range for conversation, not a recommendation.

What builds the number — and what offsets it

Debts, final expenses, education goals, income replacement, and estate liquidity add up; existing assets and existing insurance offset them. The suggested starting range is $701,812 to $771,993.
  • Debts$150K
  • Final expenses$15K
  • Education goals$50K
  • Income replacement (PV)$512K
  • Estate liquidity$0
  • Existing assets-$25K
  • Existing insurance$0

Your next moves (educational, not advice)

  1. Before any quote conversation, learn the difference between term and permanent coverage — how a policy is built matters more than whose name is on it.
  2. Check whether your job offers group life insurance. It's commonly 1–2× salary, and it rarely moves with you when you change jobs — so treat it as a supplement, not the plan.
  3. Bring this worksheet to any conversation with a licensed insurance professional — when you know your own numbers, you lead the discussion.
Want to talk through your result? No pitch, no obligationRead: Term vs. whole vs. IUL

WealthChem life insurance needs worksheet — educational estimate only

Debts $150,000 + final expenses $15,000 + education goals $50,000 + 10 years of $60,000 income (present value at 3%) + estate liquidity $0 − existing assets $25,000 − existing insurance $0 → a starting range of $701,812 to $771,993.

A starting range for conversation, not a recommendation. Generated by wealthchem.com/tools/life-insurance-needs. Not financial advice.

The formula, in the open

Coverage = Debts + Final Expenses + Education Goals + PV(Annual Income × Years to Replace) + Estate Liquidity − Existing Assets − Existing Insurance Example: $150,000 + $15,000 + $50,000 + ~$511,800 (PV of $60,000 × 10 yrs @ 3%) + $0 − $25,000 − $0 ≈ $701,800
PV (present value): a stream of future paychecks costs less than its sticker price today, because a lump sum can keep earning a modest return while it pays out. We discount at a fixed, conservative 3% — that's why replacing $60,000 a year for 10 years takes about $512,000 up front, not $600,000.

Assumptions

  • Income replacement is discounted at a fixed 3% per year — a conservative rate for money kept safe while it pays out
  • Debts, education goals, and final expenses are entered in today's dollars
  • Existing assets means money your family could actually spend — not the home they live in
  • The result is shown as a range from the computed figure to 10% above it, to reflect estimation uncertainty

Limitations

  • A starting range for conversation, not a recommendation — coverage decisions deserve a full review with a licensed insurance professional
  • Doesn't model inflation, future raises, Social Security survivor benefits, or a surviving partner's income
  • Says nothing about product type — term vs. permanent is a separate question worth learning before any quote conversation

Want the concept behind the math? How much life insurance does your family actually need? →