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The Gap

Find out if your current coverage matches what your family would actually need. Most people are surprised by what they find.

Takes about 2 minutes

Needs Analysis

Step 1 of 2

If something happened to you tomorrow, what expenses would your family face?

$

Your pre-tax household income that would need to be replaced

10 years
5 years 30 years

How many years should your coverage replace your income?

$

Outstanding mortgage that would need to be paid off

$

Car loans, student loans, credit cards, etc.

$

College fund or other education expenses

$

Funeral costs, medical bills, estate settlement

Advanced Assumptions (optional)
6%
1% 12%

Assumed annual return on a lump-sum payout invested conservatively

3%
0% 6%

How fast costs rise each year — 3% is the historical U.S. average

$

Income your household would still have — reduces the replacement need

$ /mo

Estimated monthly benefit — check ssa.gov/myaccount for your estimate

This calculator provides estimates for educational purposes only. It uses a present-value model that accounts for assumed investment returns and inflation, but results depend on the assumptions you provide. Actual insurance needs vary based on individual circumstances, tax situations, and market conditions. Consult with a licensed insurance professional for personalized recommendations.

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Frequently Asked Questions

Common questions about coverage gaps and life insurance needs.

The calculator determines the present value of your income replacement need — how much a lump sum today would need to be, invested at your assumed rate of return, to replace your income over the chosen number of years after adjusting for inflation. It adds your mortgage balance, other debts, education funding, and final expenses (these are current-dollar obligations). It then subtracts your existing life insurance and accessible savings. The difference is your coverage gap.
A common starting point is 10 years, but it depends on your family's situation. Families with young children sometimes use 15-20 years. If your spouse earns a comparable income, fewer years may be sufficient. There's no single right answer.
Yes, include it in the 'Existing Life Insurance' field. Keep in mind that employer coverage typically ends when you leave the job, so some people choose to carry personal coverage as well.
Include liquid assets your family could access relatively quickly: savings accounts, investment accounts, CDs, and similar holdings. Retirement accounts (401k, IRA) can be included but keep in mind early withdrawal penalties and taxes would reduce their value.
That means your existing coverage and savings meet or exceed your calculated needs. You may still want to review your coverage periodically, especially after major life events like a new home, new child, or career change.
This calculator uses a present-value approach that accounts for investment returns and inflation over your chosen time horizon — the same method financial professionals use. For a more detailed analysis, consider consulting with a licensed advisor who can factor in tax implications, specific debt payoff timelines, and your complete financial picture.
The Advanced Assumptions let you customize four factors that affect your result. Rate of Return is the annual return you'd expect from investing a lump-sum payout (default 6%). Inflation Rate is how fast costs rise each year (default 3%). Spouse/Partner Income reduces your income replacement need since your household would still have that income. Social Security Survivor Benefit is the monthly benefit your family may qualify for — check your estimate at ssa.gov/myaccount.
If you have a meaningful gap, these results can be a useful starting point for conversations about life insurance coverage. Many people use term life insurance to address coverage gaps. A licensed professional can help you evaluate your specific situation.