Life Insurance Needs Calculator Intro
VA’s Life Insurance Needs Calculator can provide you with the estimated amount of life insurance you would need to support your survivors should you die today.
The calculator asks for information to determine your current assets, the income your survivors will need, and your financial obligations. By subtracting your total assets from your total financial obligations and income needed, the calculator arrives at the amount of life insurance you need. In other words:
Financial
Obligations + Net Income Needed
to Support Survivors − Assets = Insurance Needs
Financial Obligations
Financial obligations are monies that are currently owed to others on existing debts or income that your survivors will need for planned future expenses. These include:
- Car Loans
- Credit Card Debt
- Funeral/Burial Expenses
- Children’s Educational Expenses
- Mortgages
- Other Personal Loans
- Estate Taxes and Expenses
- and more
Net Income Needed to Support Survivors
This is the annual income you believe will provide the standard of living you desire for your survivors less the annual income available to your survivors. This includes:
Annual Income Available Income Needed
- VA Dependency and Indemnity Compensation (DIC) or Death Pension Income
- Social Security Survivor Benefit
- Survivor Benefit Plan Income
- Pension Plan Amount
- Survivor's Earnings from Work
- Income from Dividends and Interest
- Future Income for Your Family
Assets
Assets are the amount of property your survivors would need to pay off your debts should you die. These include:
- Investments
- Certificates of Deposit
- Existing Life Insurance Plans
- Real Estate
- Social Security Benefits
- Bank Accounts
- Savings Bonds
- Annuities with Survivor Rights
- Retirement Funds
- Employer Survivor Benefit Plans
- and more
Now you're ready to calculate your life insurance needs. Follow this link to use VA's Life Insurance Needs Calculator.