Tool-20 // Insurance Gap Analyzer
Calculate how much life insurance coverage your family actually needs — and how big the gap might be.
Your household's total annual pre-tax income.
How many people rely on your income (spouse, children, etc).
Existing assets that could support your family.
Total death benefit from all current policies.
How many years your family would need support.
Income replacement: 20 years × 2 dependents = ~10× income multiplier.
Educational estimates only — not personalized financial advice. Calculator inputs stay on your device. Disclaimer · Privacy
// How to use this instrument
Plain-English guide for Insurance Gap Analyzer. Read alongside your results — then re-run scenarios.
Rough life (or coverage) need vs existing coverage → gap.
This Insurance Gap Analyzer runs entirely in your browser. Calculator inputs stay on your device and are not stored on TopMoneyTools servers as account data.
Outputs are educational planning estimates. They do not replace lender quotes, tax software, insurance underwriting, or licensed advice.
Reach for this tool when: New parent, mortgage, income replacement thinking.
Use more than one scenario. Changing rate, timeline, or spending often moves the answer more than people expect.
If you are close to a major decision (home purchase, retirement date, large debt payoff), treat this as a pre-conversation tool — then verify with primary documents and a professional who knows your full situation.
How to use it: Annual income × years + debts + final expenses − existing cover − liquid assets (rule-of-thumb method—label it).
Label units carefully (monthly vs annual income, APR vs monthly rate).
After the first run, stress-test: higher rate, lower return, shorter timeline, or higher expenses. The range matters more than one precise output.
How to read results: Conversation starter with licensed agent—not a policy quote.
If a result looks surprising, re-check units, whether taxes/fees are included, and whether you modeled best-case assumptions only.
Use related guides and tools below to cross-check the story from another angle.
Educational estimates only — not personalized financial advice. Results depend on your inputs. Disclaimer · Privacy · Terms.
Most advisors use the DIME formula: Debt (pay off all debts) + Income (replace income for X years) + Mortgage (pay off the house) + Education (fund college for kids). This gives a more complete picture than just income replacement alone.
Many people have 1-2× their salary through work and think they're covered. The typical recommendation is 10-12× your annual income — especially if you have young children. Employer coverage is a start, not a complete plan.
For most families, term life insurance (20-30 year terms) provides the best value. It's affordable when you're young and covers the years when your family depends on your income — typically until kids are through college and the mortgage is paid.
Want to understand the concepts behind these numbers?
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