Fidamen

Life Insurance Calculator

This calculator provides multiple commonly used approaches to estimate how much life insurance coverage you may need. It supports needs-based, income-replacement, human-life-value, and debts-and-final-expenses methods so you can compare results and choose a prudent target.

Results depend on user inputs and assumptions about investment returns, inflation, and survivor resources. Use the estimates as planning guidance only; consult a licensed financial professional or actuarial advisor for a comprehensive, personalized recommendation.

Updated Nov 23, 2025QA PASS — golden 25 / edge 120Run golden-edge-2026-01-23

Governance

Record ebc37936b862 • Reviewed by Fidamen Standards Committee

Estimates one-time needs (debts, final expenses) plus the present value of income replacement and education funding, then subtracts available survivor resources.

Inputs

Results

Updates as you type

Recommended coverage — Needs-based

$604,210.16

OutputValueUnit
Recommended coverage — Needs-based$604,210.16USD
Primary result$604,210.16

Visualization

Methodology

The tool applies standard actuarial and financial math: present-value calculations for income replacement and discounted future earnings for human-life-value. For immediate needs it sums debts and final expenses then subtracts readily available survivor resources.

Model and operational practices align with recognized guidance for financial calculation rigor and information security. For example, use of tested numerical methods and validation is consistent with NIST recommendations for numerical software testing and ISO guidelines for financial services quality management. This tool is not a substitute for professional advice.

Key takeaways

Compare multiple methods to create a coverage range rather than relying on a single number.

Adjust economic assumptions to reflect conservative planning; small changes in expected returns and years of replacement can materially affect recommended coverage.

Consult licensed financial and insurance professionals for policy selection and underwriting considerations.

F.A.Q.

How accurate are these estimates?

Estimates are approximate and depend on input accuracy and assumptions (returns, inflation, years of income replacement). They do not account for taxes, changing future earnings, or complex household needs. Use them for planning, not as a binding financial guarantee.

Which method should I use?

Needs-based is comprehensive for most households because it combines immediate obligations and future income needs. Income-replacement and HLV provide complementary viewpoints. Consider multiple methods to create a range and consult a licensed advisor for a final insurance decision.

Are these calculations compliant with standards?

The calculation logic follows widely accepted financial math. For process controls, testing, and data handling, this tool references best-practice frameworks and standards listed in citations. It is not a regulatory filing or actuarial certification.

What if expected investment return is zero?

If the expected investment return is zero, present-value annuity formulas degenerate to simple multiplication (annual replacement × years). The tool's formulas assume a nonzero rate for discounting; for a zero or near-zero rate results should be interpreted cautiously.

Can I rely solely on this calculator to buy a policy?

No. Use this calculator to inform discussions. Final policy selection should consider underwriting, premium affordability, policy type, riders, and the advice of a licensed insurance agent or financial planner.

Sources & citations

Further resources

External guidance

Versioning & Change Control

Audit record (versions, QA runs, reviewer sign-off, and evidence).

Record ID: ebc37936b862

What changed (latest)

v1.0.0 • 2025-11-23 • MINOR

Initial publication and governance baseline.

Why: Published with reviewed formulas, unit definitions, and UX controls.

Public QA status

PASS — golden 25 + edge 120

Last run: 2026-01-23 • Run: golden-edge-2026-01-23

Engine

v1.0.0

Data

Baseline (no external datasets)

Content

v1.0.0

UI

v1.0.0

Governance

Last updated: Nov 23, 2025

Reviewed by: Fidamen Standards Committee (Review board)

Credentials: Internal QA

Risk level: low

Reviewer profile (entity)

Fidamen Standards Committee

Review board

Internal QA

Entity ID: https://fidamen.com/reviewers/fidamen-standards-committee#person

Semantic versioning

  • MAJOR: Calculation outputs can change for the same inputs (formula, rounding policy, assumptions).
  • MINOR: New features or fields that do not change existing outputs for the same inputs.
  • PATCH: Bug fixes, copy edits, or accessibility changes that do not change intended outputs except for previously incorrect cases.

Review protocol

  • Verify formulas and unit definitions against primary standards or datasets.
  • Run golden-case regression suite and edge-case suite.
  • Record reviewer sign-off with credentials and scope.
  • Document assumptions, limitations, and jurisdiction applicability.

Assumptions & limitations

  • Uses exact unit definitions from the Fidamen conversion library.
  • Internal calculations use double precision; display rounding follows the unit's configured decimal places.
  • Not a substitute for calibrated instruments in regulated contexts.
  • Jurisdiction-specific rules may require official guidance.

Change log

v1.0.0 • 2025-11-23 • MINOR

Initial publication and governance baseline.

Why: Published with reviewed formulas, unit definitions, and UX controls.

Areas: engine, content, ui • Reviewer: Fidamen Standards Committee • Entry ID: 25ed134582fd