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Life Insurance Needs Calculator

Two very different conversations live under the words “life insurance.” A 38-year-old with two kids asking how much term they need is doing income-replacement math. A 68-year-old with a closely-held business and a $40 million estate is doing estate-liquidity math. The numbers, the products, and the structures involved barely overlap. This tool handles both.

The income-replacement case

The standard framework is “DIME”: Debt + Income replacement (typically 10-20 years) + Mortgage + Education. The output is the face value of term insurance that keeps the household whole if the breadwinner dies during the working years. Term policies are cheap, predictable, and structured to expire roughly when the income-replacement need does — kids grown, mortgage paid, retirement assets in place.

If you are in this category, the calculator below will hand you a defensible number in about 30 seconds. The right policy is almost always level-premium term from a highly-rated carrier; permanent insurance is rarely the right fit at this life stage.

The estate-liquidity case

The HNW conversation is structurally different. The federal estate exemption is at a historic high — $15 million per individual / $30 million per married couple in 2026 — but the households at and above that line typically hold their wealth in forms that do not convert smoothly into a tax check. A family business. Appreciated real estate. A concentrated equity position that became 60% of the portfolio. Art. Carried interest. The IRS wants the estate-tax payment within nine months. The wrong assets get sold under duress.

Properly-structured life insurance — usually permanent, usually held inside an irrevocable life insurance trust (ILIT) so the death benefit sits outside the taxable estate — is the cleanest way we know to pre-fund that tax bill. Heirs inherit the business, the building, the position. The policy pays the IRS. We at T&T Capital Management coordinate this piece tightly with the client’s estate attorney and CPA; the ILIT structure and Crummey-letter funding cadence are not DIY work.

What this calculator does

Pick a mode. Fill in the inputs. The tool returns a recommended face value, a coverage gap (net of existing in-force coverage), and a product-type framing — what shape of policy actually fits the need.

Run yours.

Math runs in ~1 second. We don’t store your inputs.

How this works: Income-replacement mode uses the DIME framework (Debt + Income × years + Mortgage + Education) minus existing in-force coverage. Estate-liquidity mode projects federal estate tax using the 2026 $15M individual / $30M MFJ exemption (OBBBA 2025) at the 40% top rate, plus state estate tax in the 13 states + DC that levy one (top-marginal-rate approximation on amounts above each state’s 2026 exemption). The recommended face value is the projected total tax bill minus existing in-force coverage. Urgency score blends tax-bill size against the liquid portion of the estate.

Compliance note: T&T Capital Management is an SEC-registered investment adviser. We are not insurance agents and this is not insurance advice. Product-type recommendations are illustrative; actual underwriting, carrier selection, and policy design must run through a licensed insurance professional. For estate-liquidity applications, the ILIT structure and funding cadence must be designed in coordination with your estate attorney and CPA. This calculator does not constitute legal, tax, or insurance advice.

T&T Capital Management is an SEC-registered investment adviser. To talk with us about your specific situation, schedule a free consultation.