life insurance needs

If the death benefit from life insurance policies are tax free, why the heck does it have you divide by 1 minus the tax rate to get the total amount of life insurance needed. This makes no sense to me. Thoughts?

Are you talking about human life value or needs based? Usually you adjust the salaries to pretax amounts because you need to cover the before tax gross income. But I’m not sure if this is what you’re referring to. Context?