What is the purpose of an insurance rate calculator? It helps you answer the question of how much life insurance you need. Before finding a life insurance quote from an agent, a consumer would do well to calculate how much they need to insure. The figure given by the calculator will be based on how much money the insured makes, what the cost of living of their dependents will be, and other pertinent information. Simply put, an insurance rate calculator helps the consumer to obtain quotes and estimate costs. The prospective buyer of insurance enters in the information requested and the calculator makes a general estimate. Ideally it simplifies what is normally a very tedious process. With the information given, consumers can have an idea of what type of insurance policy would be right for them. It would also give them an idea of how much they should be paying on insurance premiums.