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Using a life insurance calculator


How do you calculate the amount of life insurance coverage you may need?

If you buy more coverage than you need, you could potentially pay premiums that are higher than you anticipated. If you buy too little coverage you may not be able to sufficiently help cover your debts and other expenses your dependents may incur in the event of your death.

A life insurance calculator can help you assess your personal life insurance needs. By carefully considering your finances, you can use a life insurance calculator to help you arrive at a coverage amount that can fit your unique financial situation.

Using our life insurance calculator

At AIG Life Insurers, our easy-to-use life insurance calculator can help you figure out how much life insurance coverage you may need.

Simply enter the appropriate numbers within the input fields for consideration such as your home equity, income and college fund amounts. The calculator accounts for a number of factors, including your current life insurance coverage, assets and your expected expenses and debts at death.

The calculator doesn’t just provide you with an amount of life insurance coverage you might want to consider, it also provides detailed clarity into your finances, how you arrived at such a coverage amount and how your life insurance policy would be used to help protect your beneficiaries. Under the calculator, you’ll find a thorough explanation of each number you’re asked to enter.

Reason to use a life insurance calculator

When determining how much life insurance to buy, you’ll sometimes hear general rules of thumb such as using 10 times your income, or the DIME (Debt, Income, Mortgage, Education) formula.

But the financial future of your loved ones is too important to leave in the hands of a general rule of thumb. Using a life insurance calculator can help give you an opportunity to acquire a more accurate coverage amount that might better serve the needs of your beneficiaries.

Tips for calculating your life insurance coverage amount

A calculator can be useful for determining how much life insurance coverage you may need, and a few tips can also help you perform additional calculations.

  1. You could consider making a life insurance policy part of an overall future plan as opposed to an isolated asset. You may want to take into account your future expenses and growth (or loss) of future income and assets in order to better see the big picture of your possible coverage needs.
  3. While you of course want to avoid facing premiums that are higher than necessary, you could consider overestimating your needs as a way of erring on the side of caution. You may want to round numbers up and estimate liberally to give yourself more of a potential cushion to work with.
  5. You might consider buying multiple smaller policies instead of one large policy. One strategy is to buy permanent life insurance and then overlap it with term policies of varying coverage lengths and amounts in an effort to cover each stage of life sufficiently.
  7. You may also want to include your spouse and other potential beneficiaries in your planning to make sure your estimates are consistent with their needs.

Get help determining your life insurance needs today by using our life insurance calculator, and don’t hesitate to call 1-888-428-8870 to speak to an AIG-appointed life insurance agent who can help you select the policy and coverage amount that fit your needs.



Policies issued by American General Life Insurance Company (AGL) except in New York, where issued by The United States Life Insurance Company in the City of New York (US Life). Issuing companies AGL and US Life are responsible for financial obligations of insurance products and are members of American International Group, Inc. (AIG). Products may not be available in all states and product features may vary by state. Guarantees are backed by the claims-paying ability of the issuing insurance company. ©2018 AIG. All Rights Reserved. 

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