Life Insurance Proceeds Calculator
See how long a life insurance lump-sum payout could support your family. Adjust the payout amount, monthly need, and assumptions to visualize the years your loved ones would be covered.
Step 1 · Replacing your income
If you weren't here to bring home a paycheck, how much income would your family need — and for how long?
Your annual income
$
Years to replace
yrs
A common rule of thumb is 10 years — enough time for kids to grow and a spouse to adjust.
Step 2 · Paying off debts
What would you want paid off so your family isn't carrying the balance?
Mortgage balance
$
Other debts
$
Cars, student loans, credit cards, medical — anything you'd want cleared off the family books.
Step 3 · Children's education
If you want to set aside funds for college, how many kids and roughly how much per kid?
Number of children
Cost per child
$
$100,000 is a reasonable national average for 4 years of in-state public college. Adjust if you're aiming higher or lower.
Suggested Coverage
$0
Income replacement ongoing$0
Debts & mortgage one-time$0
Education fund one-time$0
Total$0
Based on the DIME method (Debts, Income, Mortgage, Education). Income replacement factors in the return rate and inflation set in the calculator below. A Compass advisor can refine this for your situation.
Modeled below ongoing
$0
Income replacement — this is what the calculator simulates over time
Plus one-time payouts lump sum
$0
Debts & mortgage + education — paid out immediately, not modeled
Suggested death benefit
$0
The full life insurance coverage you should consider
Your Numbers
Life Insurance Payout
$1,000,000
$
Monthly Income Needed
$6,000
$
What survivors will withdraw each month to cover living expenses.
Annual Return on Balance
5.0%
%
Estimated growth on the unspent balance (e.g., a conservative investment account).
Annual Inflation
3.0%
%
Withdrawals increase each year to keep pace with rising costs.
Funds Last For
—
Years of monthly support
Total Withdrawn
—
Across the full timeline
Final Balance
—
At the end of year 30
Balance Over Time
Remaining Balance
Cumulative Withdrawals
Important: This calculator is an illustrative tool. It assumes a steady annual return and inflation rate, monthly withdrawals at the beginning of each month, and does not account for taxes, fees, market volatility, or changes in family needs. Actual results will vary. For personalized guidance, talk with a Compass advisor.
