How To Calculate Life Insurance Needs
Life Insurance—Steps To Calculate Limits
If you are in the market for affordable life insurance, one of the first things you should think about before calling GEICO is how much life insurance you need. Here is a quick way to estimate your life insurance requirements.
What will your final expenses be??Include funeral expenses, medical bills, and taxes.Do you have existing loans or debts (excluding mortgages)??Add up your existing debts, loans, and other balances that would need to be paid.How much do you owe on your mortgage??Estimate the amount of any mortgages that would need to be paid.
How much money do you pay toward the household's yearly income that would need to be replaced??What is your annual income or family contribution that would need to be replaced?How many years would this amount need to be replaced??The number of years this amount need to be replaced in your absence.
The above is meant as general information based on information you provided. This amount does not make any adjustments for inflation, taxes or return on any investments. The calculator is for illustrative purposes and is not a recommendation, as other factors may influence how much coverage is appropriate for your situation. Nothing on this page refers to any specific contract of insurance, nor does it modify any definitions, exclusions or any other provision expressly stated in any contracts of insurance. We encourage you to speak to your insurance representative and to read your policy contract to fully understand your coverages and insurance needs.