Income
Amount
Spouse's Income - Enter your spouse's annual income after taxes.
You may want for your spouse to be able to stop working in the event of your
death, and if that is the case enter zero here.
Social Security Income - Enter the amount of money your spouse will
receive from Social Security. Social Security will pay your spouse a monthly amount
for each child until they are out of school. A rough but fairly accurate number
to use is $20,000. If you do not have children enter 0.
Other Income - Enter the total annual income your spouse will
receive from any other sources.
Expenses
Living expenses - Estimate how much money your family will need per
month to live life as it does now. Remember your estate (insurance) will
pay off mortgages and large loans. Estimate at 60% of your current
monthly income (less mortgage payments).
Funeral expenses - Funeral and other expenses run an average of $6,000.
Estate administration expenses - Your spouse will be charged
perhaps 5% of your family's asset value to handle the estate. Assuming you had
an estate worth $100,000 your estate admin expense would be about $5,000.
Taxes - If your net assets total more tha $600,000, your spouse
will have to pay perhaps 40% in taxes on it. Most estates end up lower than
this amount. Remember life insurance proceeds is NOT part of this amount.
Mortgages and other large loans. Your family has been counting
on you paying the mortgage, your life insurance should remove this burden.
College expenses - If you plan to send your children to college,
enter $10,000 for each child for state college or $25,000 per child for private
college. Be sure to multiply by the number of children times number of years.
Other large items you would like to cover. This can be anything - car,
boat, vacation house.
Other Information
Years of social security - Enter the number of years until your
youngest child reaches age 18. If you have no children enter 0 here.
Spouse's age - Enter your spouse's age.
Existing Life Insurance - Enter the value of any existing life
insurance policies you have.
Additional Life Insurance Needed
Total Life Insurance - This is the additional amount of life insurance
you need.
Click the button to the left to calculate the total amount of life insurance
you need
