Term Needs Analysis

Term Life Needs Analysis Calculator

Estimate the coverage needed to protect income, eliminate debts, and cover key goals—minus available assets and existing coverage.

Income replacement

Annual household income (before tax)

Used to estimate income replacement needed.

Percent of income to replace

70% (common range: 60–80%)

Years to replace income

15 years

Tip: Often align this to the time until kids are grown and/or major debts are paid off.

Include childcare / eldercare cost?

Optional: add ongoing care cost to the income need.

Quick summary

Estimated income replacement need

This is a planning estimate, not financial advice. If your household relies on two incomes, consider adjusting “percent to replace” to reflect what would actually be missing.

Helpful options

Round final recommendation to nearest $50,000

Keeps results practical for shopping term coverage.

Add a 10% safety buffer

Optional cushion for fees, timing, and uncertainty.

Debts to eliminate

Mortgage balance

Auto loans (total)

Credit cards (total)

Student loans (total)

Other debts

Enter balances you want fully eliminated.

Family goals

Final expenses (funeral, medical, legal)

Many families plan $10k–$25k depending on preferences.

Education fund (kids/other)

Other goals (emergency fund, legacy, business)

Debts & goals subtotal

This includes mortgage, other debts, final expenses, education, and other goals.

Assets available for survivors

Savings / emergency funds

Investments (taxable / brokerage)

Retirement accounts likely to be used

Optional: only include what you realistically want used.

Existing coverage

Current life insurance (total)

Employer-provided life insurance

If you may lose it when leaving a job, consider reducing this number.

Assets & coverage to subtract

This is subtracted from your total need.

Recommended coverage

Estimated term life coverage needed

Calculation: (Income Replacement + Debts & Goals) − (Assets + Existing Coverage).

Breakdown

Category	Amount
Income replacement	$0
Debts & goals	$0
Total need	$0
Assets & existing coverage (subtract)	$0
Estimated coverage needed	$0

Tip: If you want a tighter plan, lower “years to replace income” or the “percent to replace.” If you want a more conservative plan, add the 10% buffer.