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Life Insurance Calculator

How much should your Life Insurance policy be worth? This is one of the most important questions you can ask when choosing a Life Insurance policy. Consider that the amount of income you will be earning during the course of your working life, usually millions of dollars, is essentially the asset you are securing with your Life Insurance policy. Just as your auto and homeowner’s policy insures the total value of your car and house, Life Insurance policies should cover the value of your future earnings. Superhero Insurance website provides a Comprehensive Life Insurance Calculator to help guide you through this process.

Welcome to the Superhero life insurance calculator

In order to assess what kind of coverage you need, you need to calculate the many factors that come from your personal circumstances. Answer these questions by moving the toggle of the Life Insurance Calculator to the outcome you desire.

Are you confused and in need of rescuing? Fear not! A handy list of definitions listed below will guide you through the processes of our Life Insurance Calculator


Existing life insurance coverage

The total value of the Life Insurance policies you already have in place for yourself.

Years for insurance income to last

The amount of years your spouse, or dependents, will need to use the benefits from your life insurance policy after your passing, or other qualifying event.

Expected inflation rate

This is the rate that your expenses and income are expected to rise. The rate of increases grows every year that you will need income.

After-tax return on investments

For the purposed of this Life Insurance Calculator, this is the compounded annual rate of growth you expect on your savings, including any insurance proceeds and educational savings. Your expected rate of return hinges on the kinds of investments you’ve chosen.

For example, the Standard & Poor’s 500 (S&P 500) have a total compounded annual growth rate of 7.3% for ten years ending Dec. 31, 2013, whereas a savings account at a financial institution may have a rate of return of .25% or less. However, investing in shares carries a certain amount of innate risk and fees, whereas a savings account may have little or no risk involved.

When inputting your information into the Life Insurance Calculator, fees associated with your investments are not a factor, and you should use your after-tax rate of return. Expense risk charges, mortality, cost of Insurance, surrender, and administrative charges that have an impact on your total rate of return should be included.

Required estate preservation

The amount that is remains at the time of our death, such as a life savings or other inheritances for your spouse or a charity of your choosing.

Retirement accounts

This is the balance of your account savings for retirement, such as 401(k) annuities and your IRAs, or other retirement savings.


Value of municipal, commercial, and treasure bonds should be entered on this section of the life insurance calculator.


Individual stocks not included in any of your registered retirement accounts should be listed here.

Mutual funds

Any mutual funds accounts that are not included in your registered retirement accounts should be listed here.

Savings bonds

The value of your savings bonds, if any, should be listed in this portion of the life insurance calculator.

Checking and savings

The current value of all of your checking and savings account.

Other investment assets

The value of all other investment assets should be entered here.


The value of your home today. You should try to list the value of your home to be as close to the actual market value as possible, keeping in mind that your home may be of significantly greater value than originally purchased if you have owned it for a long time.

Other real-estate

Just as with your home value, try to list other real estate assets as close to market value as possible. Other Real-Estate assets may include rental property, a second home, undeveloped land, or commercial buildings should be listed in this section of the life insurance calculator.


The market value of any automobiles you own, not including leased automobiles.

Other vehicles

Do you own an RV, camper, or collectible vehicle? List them in this section of the life insurance calculator.


Jewelry, including precious metals, such as gold or gems, should be listed here. Keep in mind, that some of your jewelry may have appreciated in value over time.

Other personal property

Other assets, such as furniture, home electronics, silverware, and other assets of value should be listed here.

Home mortgage

The amount remaining on your home that you would have to pay to be completely own your home.

Other mortgage

Mortgage on rental property, commercial property, undeveloped land; the total principal balance other real estate property mortgages not listed elsewhere on the life insurance calculator.

Auto loans

The balance remaining on any automobiles in your possession.

Student loans

The total outstanding balance on student loans you may possess, even if in deferment.

Credit card debt

Place total current credit card debt in this portion of the life insurance calculator.

Other loans

Any outstanding loans you currently have, not listed elsewhere.

Taxes on assets

Enter into the life insurance calculator all assets with taxes that are required to be paid upon your death, including Estate Taxes.

Probate costs

These are the costs that pay legal fees for asset disbursements upon your death. Even with a will, sometimes probate costs can be significant.

Funeral costs

All costs associated with your funeral arrangements will be listed here in the life insurance calculator.

Other expenses

Any other expenses that may be incurred upon the death of you or your spouse.

Current age of children

If you have children, list the current age of your children. This calculator assumes your children will begin college at the age of 18, and uses the difference between their current age and 18 as the designated savings period.

Annual tuition and books

The estimated price of one year’s tuition and books for college. The estimated cost should be specific for the school the child attends, for each child, due at the end of the year.

Room and board

One year’s current costs of room and board in college; as with tuition and book, the costs associated with this section should be for each child and for each college they are interested in attending, due at the end of the year.

Surviving spouse’s income

This is the net monthly income your spouse earns from each source of income he or she has. The start year is when the income begins, and the end year is when the income source ends.

Monthly living expenses

All of your monthly expenses should be combined in this part of the life insurance calculator, including expenses for your house, insurance, loan payments, utilities, and other miscellaneous items.