Choosing the right life insurance for all present and future needs is crucial. With so many options available, choosing the right policy may be overwhelming. How do you choose the right one? In this blog post, we'll discuss the importance of using a life insurance calculator, dos-and-don'ts and tips to ensure you get the most accurate policy at the best price.
The Wysh Blog
In this article
- Do I need to calculate life insurance needs?
- How to use a life insurance calculator
- Do’s and Don’ts of using a life insurance calculator
- More than just another life insurance calculator—the Wysh Builder!
Do I need to calculate life insurance needs?
You may be asking “why do I need a calculator?” Calculators help give us an idea of what a potential policy could look like. We can't be 100% certain about all our expenses initially. Life isn't that straightforward, is it? This is where it becomes essential that before you apply, you have an idea of what coverage is right for you and your family.
How to use a life insurance calculator
Using a life insurance calculator can be simple and straightforward. Here are the steps to follow:
Step 1: Gather your financial information
Before you start using a life insurance calculator, gather your financial information, including your income, debts, and assets. This will help you get an accurate estimate of how much coverage you need.
Step 2: Choose a calculator
There are many life insurance calculators available online, so choose one that suits your needs. Look for a calculator that asks for detailed information about your financial situation and provides personalized recommendations.
Step 3: Enter your information
Once you have chosen a calculator, enter your information as accurately as possible. Be sure to include your age, income, debts, and assets, as well as any other factors that may affect your coverage needs or premium costs.
Step 4: Review your results
After you enter your information, the calculator will provide an estimate of your coverage needs and premium costs. Review the results carefully and make sure they are in line with your expectations and budget.
Step 5: Adjust your coverage and premium
If the calculator's results suggest that you need more coverage than you anticipated or that the premium is higher than you can afford, you may need to adjust your coverage amount or premium. Use the calculator to experiment with different coverage amounts and premium levels until you find a policy that meets your needs and budget.
Do’s and Don'ts of using a life insurance calculator
- Be accurate with your information: When using a life insurance needs calculator or a term life insurance calculator, always provide accurate information about your income, debts, and expenses. This will help the calculator provide you with more precise results.
- Consider future expenses: When using a life insurance payout calculator, think about future expenses such as college tuition for children or mortgage payments. This will ensure that you choose a policy that covers your family's needs in the long run.
- Compare multiple quotes: Once you have your life insurance quotes for family, compare them to find the best policy at the best price. Don't just settle for the first quote you get.
- Underestimate your coverage needs: It's better to have a little more coverage than not enough. When calculating life insurance needs, make sure you consider all possible expenses and debts.
- Ignore riders and additional benefits: Some life insurance policies offer riders and additional benefits like critical illness coverage. Don't forget to factor these in when comparing quotes.
- Rely solely on an online calculator: While life insurance calculators can be helpful, they may not take into account every unique factor of your situation. It's always a good idea to consult with a financial advisor to ensure you're choosing the right policy.
More than just another term life insurance calculator—the Wysh Builder!
The Wysh Builder, our life insurance calculator, can help assign amounts to each expense. Plus it can do more than just calculate life insurance premiums. The Wysh Builder helps you center the costs that are most essential to your family.
While calculators may ask you to figure out 7-10x your salary, the Wysh Builder lets you see your needs exactly. These needs aka “wyshes” also provide a handy guideline for what you and your loved ones would want covered. Wyshes can be tied to your debts and our white-glove customer service team, the Wysh Granters, can work with your loved ones to make sure everything goes smoothly.
Best part about the Wysh Builder? It’s 100% free. So you can explore other calculators to compare policy prices. Once you’ve got a good idea of how life insurance calculators work, come back and check out the Wysh Builder. In no time you’ll see how easy it is to build your ideal policy.
What is a life insurance calculator?
A life insurance calculator is an online tool that helps you estimate how much coverage you need and how much your policy will cost.
What information do I need to input?
You enter information about your age, income, debts, and other factors, and the calculator provides an estimate of your coverage needs and premium costs.
Do I have to pay to use a life insurance calculator?
Most calculators are free to use. Our own Wysh Builder tool is 100% free and you don’t need to apply for an account to use it.