If you're purchasing a term life insurance policy for a few years, inflation may not be a big concern. However, if you're looking for a long term policy for 20 or more years, or getting whole life insurance quotes, it should be a part of your calculations. Something to keep in mind is that inflation increases faster in some areas. This is true for things like healthcare and education. You should calculate these separate from your other living costs when planning for inflation. Example: Your current bills require a minimum household income of $75,000. You can calculate inflation of 3% to 5% annually for regular living expenses and 8% to 10% annually for medical and education costs.