Insurance Needs Calculator

Based on the data you entered, you need an additional in coverage.

If you already have Servicemembers’ Group Life Insurance or Veterans Group Life Insurance (VGLI) coverage at the maximum level allowed, you may need to find coverage elsewhere.

• If you have not taken SGLI at the maximum level allowed, consider increasing your coverage by accessing the SGLI Online Enrollment System (SOES) if your branch of service is using SOES, or by completing SGLI Form 8286.
• If you have not taken VGLI at the maximum level allowed, consider increasing your coverage by contacting the Office of Servicemembers’ Group Life Insurance (OSGLI) at 1-800-419-1473.

Please note:   The maximum amount of VGLI a veteran can obtain is the amount of SGLI he/she had upon leaving service.   If you chose not to convert the entire amount of SGLI to VGLI after service, you can obtain the additional amount at a later date, subject to a health review.   For example, if you had $400,000 of SGLI upon leaving the service, but only chose to take $200,000 of VGLI, you can obtain an additional $200,000 of VGLI at a later date but will need to prove you are in good health.

Follow this link to view a summary of your entries.

Based on the data you entered, you have sufficient insurance to meet the needs of your beneficiary should you die today.

Follow this link to view a summary of your entries.

Most insurance companies recommend using the following figure to estimate your death expenses: the greater of $10,000 or 4% of the deceased's estate - this includes burial, funeral and estate expenses.  

Please note the following:

Estates which exceed the federal estate tax exemption amount may incur greater expenses due to possible estate taxes. The federal estate tax exemption for 2025 is 13.9 million for an individual or 28.0 million for a married couple.

The National Funeral Directors Association states that currently the average funeral in the United States costs approximately $8,500.

According to The College Board,* (including tuition, fees, books, and supplies) for the academic year 2024 - 2025 are:

• $43,350 for a four-year private institution; $58,600 with room and board included.
• $11,610 for a four-year public institution (in-state); $24,920 with room and board included.
• $30,780 for a four-year public institution (out of state); $44,090 with room and board included.
• $4,050 for a two-year public institution (in-state)

We will also factor in a 5% annual inflation rate in college costs and a 3.5% rate of return on investments.

If you expect your child to attend another type of institution of higher learning, simply insert the estimated annual cost of that type of schooling into the Current Annual Cost?

*College Boards Trends in College Pricing report (external, non VA link).

This is the amount you still owe on your current car loan.   If you have more than one car loan, put the total of both balances in the box.  

If you took out a loan on the equity you have on your house (the amount you have paid off), for college costs, to go on vacation, put on an addition, etc., put the amount you still owe on this loan in the box.

This amount should include the total in balances you are carrying on your credit cards.   If you are carrying a balance on more than one credit card, use the total amount.

In addition, if you have other loan balances from a bank, a friend or another lender for items such as, home improvements and vacations, etc., please add these loan balances to your credit card balances to complete this box.

Note: Do not include the balance on your home equity loan or car loans in this box as you have already entered them separately.

An emergency fund provides money for you and your family in the event of a tragedy.   This could be the death of a family member who provided income for the family, a medical condition, or a natural disaster.

Experts recommend you set aside three to six months of total living expenses or approximately $15,000.   This means money for all the bills you have to pay each month (mortgage, car loan, telephone, gas and electric, etc.)

Please click on the following link to be connected to the Dependents and Survivors Section of the Federal Benefits for Veterans and Dependents Manual.  The Manual explains eligibility criteria for both DIC and Death Pension as well as monthly benefit rates.

Note:   For DIC, don't forget to multiply the monthly benefit figure by twelve for an annual figure.

Click on the following link to be connected to the Social Security Administration Benefit Calculator Site.   You can estimate the amount of monthly benefits your survivors will receive in the event of your death.   The site provides retirement estimates first and below this disability/survivor benefits.  Be sure to use the disability/survivor benefits for the Insurance Needs Calculator.

Note:   Don't forget to multiply the monthly benefit figure by twelve for an annual figure.

The Department of Defense offers a Survivor Benefit Plan for survivors of active duty servicemembers, reservists, and retirees. This is a program you must enroll in to provide benefits to your family if you should die.

If you are enrolled or plan to enroll, click on Survivor Benefit Plan to be connected to the Department of Defense's plan site.   It provides estimated monthly benefit levels that you can use to enter into the Insurance Needs Calculator.   You will need to read the Overview first and then go to Costs and Benefits for the benefit estimates.

Note:   Don't forget to multiply the monthly benefit figure by twelve for an annual figure.

If you are in a private pension plan, you will need to contact the plan administrator to determine the amount, if any, that will be paid annually to your survivors.

If your survivors will not be working or you are unsure about whether they will be, enter "0" for this item.

If you have joint accounts that your survivors will inherit or your survivors have their own accounts that earn interest and dividends, provide the total they earn in one year.

Examples include:   interest on savings and checking accounts, dividends on mutual funds and stock.

If your beneficiary will receive income from rental properties, private loan payments or survivor annuities, provide the total they earn in one year from these sources.

This is the annual income you believe will provide the standard of living you desire for your survivors.  This is generally between 60-70% of your total family income.   We will also factor in a 3% inflation rate into this figure.

Please note that the amount calculated for this item will be reduced by the amount entered under the “Annual Income Available to Your Survivors.”   This is because these monies reduce your need for additional income to support your survivor’s current standard of living.

This is the number of years income will be needed for your survivors.

During your military career you may have been eligible to participate in the TSP.   The TSP Program allows you to designate a beneficiary for the balance of your account should you die.   You should enter:

• the current balance of your TSP Account in this box if you intend your beneficiary to use the money to deal with expenses should you die.  
• "0" if this is money you would like your beneficiary to use for other purposes, including retirement.

Note: if you enter "0" this figure will not be included in our calculations.

This is the current value of investments and bank accounts.   This includes mutual funds, stocks, money market and savings accounts, certificates of deposit, and savings bonds.

This is the total coverage you may already have under the SGLI/VGLI Program. It will range anywhere from $50,000 to $400,000 depending how much you elected.  

This is the total coverage you may already have from private life insurance companies, other than your VGLI coverage.

Please click on the following link to be connected to the Federal Benefits for Veterans and Dependents Manual and click on "Survivor Benefits" and located the information on Dependents Education Assistance.    The Manual explains eligibility criteria for spouses and children as well as monthly benefit rates.

Note:   Don't forget to multiply the monthly benefit figure by twelve for an annual figure.

These are other assets that your beneficiary may sell to provide money for living expenses.   This includes items such as real property, art work, or antiques.