Life insurance coverage gap calculator.
Add the financial needs your household may face, subtract the coverage and assets already available, and see a transparent starting estimate you can revise.
Build a transparent starting estimate.
Adjust every field. The result updates immediately and shows exactly how the estimate is calculated.
What is a life insurance coverage gap?
A life insurance coverage gap is the difference between the financial needs a household wants to plan for and the insurance or assets already available for those needs. It is not automatically the amount someone should buy.
This worksheet uses a needs-based formula: income support plus debts and family obligations, minus existing life insurance and assets dedicated to those same needs.
- 01
Enter the needs
Include only income support, debts, care costs, education goals, and final expenses relevant to your household.
- 02
Subtract available resources
Count existing group and individual life insurance plus assets realistically available for these goals.
- 03
Stress-test the result
Change the years, obligations, and resources to compare more than one reasonable planning scenario.
A planning estimate is the beginning of a conversation.
Affordability matters. A policy only provides protection while it remains in force.
Timelines differ. Income support, a mortgage, childcare, and lifelong needs may not last the same number of years.
Contracts control. Benefit amounts, premiums, guarantees, exclusions, and underwriting vary by policy and carrier.
Coverage calculator questions
What is a life insurance coverage gap?
A coverage gap is the difference between the financial needs entered and the life insurance or other resources entered. It is a planning estimate, not a recommendation or quote.
Should workplace life insurance count as existing coverage?
It can be entered as an existing resource, but also review whether the benefit can change, whether it depends on active employment, and what happens when employment ends.
Should savings be subtracted from the estimate?
Include only assets the household could realistically use for the needs entered. Savings reserved for retirement, emergencies, or other goals may not be fully available for this purpose.
Does the calculator provide an insurance quote?
No. It does not estimate premiums, eligibility, or policy availability. Final rates and coverage depend on an application, state availability, carrier underwriting, and policy terms.
Built as a transparent worksheet.
The calculator follows a needs-based planning approach and shows every input used. For general consumer information about evaluating life insurance needs and comparing policies, review the National Association of Insurance Commissioners life insurance guide ↗.