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How Much Life Insurance Do You Need?

Here's a quick worksheet to help you get at least a ballpark idea of how much life insurance you might be needing:

A "How Much Life Insurance Do You Need?" Worksheet

1. Estimated Annual Living Expense Of Survivors (Spouse, children, etc.)
Estimate 75% of current family living expenses:	$_________(1)

2. Less Expected Annual Benefits
A. Social Security benefits:	$_________
B. Survivor's pension benefits:	$_________
C. Survivor's earned income:	$_________
D. Other income:	$_________
Total Expected Annual Benefits:	$_________ (2)

3. Net Living Expense Shortage (or Surplus)
(1) minus (2) =	$_________(3)

4. Amount of capital required to cover living expense shortage:
Inflation adjusted rate of return (example: 8% interest less 3% inflation = 5%)	__________%
$___________ (3) divided by ________% =	$_________

5. Plus Other Lump Sum Expenses
A. Final expenses/estate costs	$_________
B. Mortgage cancellation	$_________
C. Education fund or other	$_________
D. Emergency fund	$_________
Total Lump Sum Expenses	$_________ (5)

6. Total Capital Required
(4) plus (5) =	$_________ (6)

7. Less Present Capital
A. Income producing assets	$__________
B. Present life insurance	$_________
Total Present Capital	_________ (7)

8. additional life insurance needed
(6) minus (7) =	$__________

How much life insurance do you need?

Financial Calculators

Use this emergency savings fund calculator to determine how much you should set aside to cover periods during which you have reduced or no income

Use this life insurance needs calculator to determine what your needs are. Input your assets, income and expense and the calculator will provide a recommendation. Click the report button for complete year-by-year details.

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