Sources & methodology
Short answer: Lumence's coverage estimate comes from a fixed, published formula applied to the broad ranges you choose. It is an educational estimate, not an insurance quote or recommendation. Below is exactly how it works, what it leaves out, and where our background information comes from.
How the coverage estimate is calculated
Each answer is a range, so Lumence uses the midpoint of each range. It then adds up the following and subtracts what your family could already use:
| Component | How it is calculated |
|---|---|
| Income replacement | Your share of household income × 75% × the number of years others would rely on it. The 75% reflects that the insured person's own spending and taxes stop. |
| Years of income replacement | Youngest child under 5: 20 years · aged 5–12: 13 years · aged 13–17: 7 years (roughly until age 22). Dependents but no minor children: 8 years. Nobody depends on the income: 0 years. |
| Childcare & household support | If you earn 30% or less of household income and have children: $30,000 per year for the same number of years, for the unpaid care you provide. |
| Mortgage payoff | Midpoint of the remaining-balance range you chose. |
| Other debts | Midpoint of the range you chose. |
| Education allowance | $50,000 per child under 18 (a contribution toward public college, not the full cost). |
| Final expenses | $15,000 for funeral and estate costs. |
| Existing life insurance | Subtracted (midpoint of the range). "Not sure" counts as zero. |
| Accessible savings | Subtracted (midpoint of the range). |
The result is shown as a range from 85% to 115% of the point estimate, rounded to the nearest $50,000 (or $100,000 above $1 million), so it never implies false precision. If the total is below $50,000, Lumence says you may not need additional coverage.
How the suggested term is chosen
The term aims to last as long as the income-replacement years. If you have a mortgage, the term is at least 20 years. The minimum is 10 years, and terms are rounded up to 10, 15, 20, 25 or 30 years. Terms are capped by age band to reflect what is commonly available: 30 years up to age 49, 20 years for ages 50–59, and 15 years at 60 and over.
What this estimate does not model
This estimate assumes you may want to replace part of the insured person's income for a defined period and separately eliminate selected debts. Because those goals can overlap (for example, income would ordinarily be used to make mortgage payments), the estimate may be higher than a cash-flow-only calculation. It also does not currently model investment returns, inflation, taxes or Social Security survivor benefits.
It also does not consider your health, your state, a specific insurer's underwriting rules, or details we deliberately don't ask for. A licensed professional looking at your full situation could reach a different number.
How illustrative pricing is built
Illustrative pricing is a simplified table, not a quote. It starts from an approximate annual cost per $1,000 of coverage for a healthy non-smoker buying a 20-year term, by age band: $0.42 (18–29), $0.55 (30–39), $1.05 (40–49), $2.60 (50–59) and $7.20 (60+). It then adjusts for term length (10 years ×0.7, 15 ×0.82, 20 ×1.0, 25 ×1.3, 30 ×1.6) and tobacco use (×3.2), and shows a band from 75% to 135% of that figure.
These figures approximate publicly reported 2025–26 U.S. market ranges. They have not been checked against any specific insurer's current rates, and they do not reflect health classes, state differences or carrier discounts. Actual prices are set by insurers after underwriting.
Versioning
Lumence is a research prototype. Every visit records which version of the questions, calculator and page copy was shown, so results from different versions are never mixed without notice. This page describes calculator version c1.0.
Sources
Our guides draw on public consumer and regulatory materials. Each guide lists the references relevant to it. Sources last checked Oct. 2026.
- NAIC — Life Insurance Buyer's Guide
- NAIC — Consumer information on life insurance
- NAIC — Directory of state insurance departments (regulators)
- Social Security Administration — Survivor benefits
- Social Security Administration — Survivors Benefits (Publication 05-10084)
- MIB — Consumer guide to MIB's underwriting services
- MIB — Request your MIB consumer file
- CFPB — List of consumer reporting companies (includes insurance and prescription-history reports)
- IRS — Group-term life insurance
- IRS — Publication 525, Taxable and Nontaxable Income (life insurance proceeds)
- U.S. Bureau of Labor Statistics — Employee Benefits in the United States, March 2025
State insurance departments regulate insurance where you live. You can find yours through the NAIC directory above.