Just complete the fields with the asterisk * and it will automatically figure how much life insurance you should purchase.
CURRENT CASH NEEDS | |
---|---|
Final Expenses * | |
Emergency Funds * | |
Mortgage Balance * | |
Other Loans | |
Education (Estimated Costs) * | |
Total Current Cash Needs |
CURRENT & LONG TERM CASH NEEDS | |
---|---|
Required Monthly Income * | |
Cash Reserve * | |
Total Cash Reserve Required | |
Total Cash Needs + Reserve Required |
LIFE INSURANCE NEEDS | |
---|---|
Cash & Savings * | |
Securities * | |
IRA, Keogh, 401(k) and Pension * | |
Life Insurance Inforce * | |
Total Assets | |
Total Life Insurance Needed |
Final Expenses
This incudes probate costs, funeral expenses (actual funeral expenses may be $7,500 - $15,000) and medical costs for any bills your health policy does not cover (deductible plus any co-insurance.)
Emergency Funds
It is recommended that you have up to six months salary for any household or personal emergencies that may arise. Your emergency fund can be larger or smaller, depending on your family's circumstances.
Mortgage Balance
It is a good idea to select a life insurance benefit large enough to pay off the existing mortgage balance.
Other Loans
Total of all outstanding debts (principal), auto loans, personal loans, credit card balances, etc.
Education - Estimated Current College Costs for Your Children
On average, the current cost is $38,261 per year per child for a four year private school, and $17,860 per year per child for a four year in state public school. This incudes tuition, fees and room & board.
Required Monthly Income
To determine how much monthly income you need, take 70% of your annual net (take-home) pay and divide it by 12 months. Example: $100,000 annual income x .70 / 12 = $5,833 of monthly income.
Cash Reserve Factor
This is a time-value analysis to determine future cash needs assuming annual increase in inflation and a return on the lump sum death benefit.