Life Insurance Calculator

Life Insurance Needs Calculator — Longitude Financial Planning

I'm calculating for:

For the most complete picture, run this calculator separately for each person in your household.

Human Life Value

Earning power replacement approach

Human Life Value estimates the present value of your future income contribution to loved ones.

Personal Details

Current Age

Enter a valid age (18–85).

Retirement Age

Must be greater than current age.

Income Details

Gross Annual Income

$

Enter a non-negative income amount.

Annual Taxes

$

Enter a non-negative amount.

Personal Living Expenses

$

Enter a non-negative amount.

Assumptions

Annual Income Growth Rate

%

Default: 3.0% (customize) Enter 0–20%.

Discount Rate / Expected Return

%

Default: 5.0% (customize) Enter 0–20%.

Existing Life Insurance Coverage

$

Enter a non-negative amount.

For each year from your current age to retirement, we project your income using the growth rate. We then subtract taxes and personal living expenses to estimate the net amount available to your dependents. Each year's net amount is discounted back to today's dollars using the discount rate, then all years are summed.

Net Contribution (Year t) = Income(t) − Taxes(t) − Personal Expenses(t) Income(t) = Gross Income × (1 + Growth Rate)^t PV of Year t = Net Contribution(t) ÷ (1 + Discount Rate)^t HLV = Σ PV(all years) − Existing Coverage (Floored at $0)

This method captures the economic value of your earning power to your household — not just what your family would spend, but what they would lose.

Needs Approach (D.I.M.E.)

Debt, Income, Mortgage, Education + other costs

The Needs Approach adds up specific financial obligations your survivors may need to cover.

D — Debt

Non-Mortgage Debts (credit cards, auto, student loans, etc.)

$

Enter a non-negative amount.

I — Income Replacement

Annual Income to Replace

$

Survivor income need (may differ from gross income) Enter a non-negative amount.

Years of Replacement

Suggested default: 10 years Enter 1–50 years.

M — Mortgage

Remaining Mortgage Balance

$

Enter a non-negative amount.

E — Education & Other Major Costs

Education Funding Need

$

Enter a non-negative amount.

Final Expenses

$

Default: $15,000 (customize) Enter a non-negative amount.

Emergency / Transition Fund (optional)

$

Enter a non-negative amount.

Offsets — Available to Survivors

Savings & Investments

$

Enter a non-negative amount.

Existing Life Insurance

$

Enter a non-negative amount.

The Needs Approach sums four specific categories of financial need:

D (Debt): Non-mortgage liabilities survivors would inherit or need to pay off.
I (Income): Annual income need × years of replacement (simple multiplication; no time-value discounting by default).
M (Mortgage): Remaining balance on the primary residence.
E (Education + other): College funding, final/burial expenses, emergency buffer.

Total Need = D + (Income × Years) + M + E DIME Coverage = Total Need − Savings/Investments − Existing Coverage (Floored at $0)

Because income replacement is not discounted in this simplified model, the D.I.M.E. estimate tends to be more conservative (higher) than a discounted method would produce.

Human Life Value projects income linearly using a constant growth rate and discounts each year's net household contribution back to present value. It does not account for inflation adjustments, variable spending patterns, or changing tax brackets.
Needs Approach (D.I.M.E.) uses simple (not discounted) income replacement, which means it does not account for interest that invested proceeds could earn over time. This tends to produce a higher (more conservative) estimate.
Neither method accounts for Social Security survivor benefits, pension survivor benefits, group life insurance through an employer, or survivor income from a working spouse or partner.
Final expenses default to $15,000 — adjust this to reflect your region and preferences.
Both estimates assume coverage is held as term insurance or equivalent. Actual premium costs and product design are not modeled here.

Your Coverage Estimates

Calculated for: Myself

Human Life Value Earning power replacement

$0

Estimated additional coverage needed

Needs Approach (D.I.M.E.) Specific obligations approach

$0

Estimated additional coverage needed

Conservative Planning Number

Higher of the two estimates

Defaults to the higher estimate as a starting point for discussion with your advisor.

$0

Why These Numbers May Differ

Human Life Value tends to be lower when…

Your income growth and discount rate assumptions are similar (net present value is high), you have a long working horizon, and your personal living expenses consume a smaller share of your income.

Needs Approach (D.I.M.E.) tends to be higher when…

You carry significant debts or a large mortgage, you have college-bound children, or you want many years of income replacement. Because it doesn't discount future dollars, it can be more conservative.

When to Use Each Estimate

Lean on HLV when…

You want to frame insurance as an asset — one that replaces the economic contribution you make to your household. Useful when income is the primary driver of family financial security, especially for high earners with modest debts.

Lean on D.I.M.E. when…

You prefer a goals-based, liability-by-liability approach. Works well when specific obligations (mortgage, education, debts) are large relative to income, or when survivors have independent income of their own.

Use both as a reasonableness check

A planner will typically review both methods together. If they're close, the estimate is likely reliable. A large gap signals that one or more inputs — income replacement years, growth rate, or debt load — deserve closer examination.

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