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How Much Life Insurance Do I Need?

The amount of life insurance an individual insured may require can vary tremendously. Generally, the more people who depend on your income while you are alive, the more life insurance you should own. This holds true for individuals, families and business people. In general, many financial planners estimate that you should be insured for 5-7 times your annual income.

Our consultants have created the first interactive programs on the World Wide Web for calculating the amount of life insurance an individual should purchase. This program is designed with heads of households in mind, but it can be adjusted to fit almost any situation.

 

Step 1. Evaluate Your Income and Assets

What is your current income?

$

How many years will your spouse need your annual income?

 

Current investment income(Rental Properties, Dividends, Annuities, etc.)

$

Existing liquid assets - All assets that can be turned into cash within 3 months (We recommend you not liquidate retirement accounts due to tax penalties)

$

The amount of your existing life insurance coverage:

$

Step 2. Evaluate Your Debts and Expenses

Outstanding mortgage balance:

$

Outstanding loans:

$

Final expenses:(Medical, Funeral, Taxes)

$

Step 3. Evaluate Your Child Support and College Expenses
*We suggest an average annual tuition cost of $15,000 - $20,000 per year

Child:

Monthly child cost:

Years child will require support:

College expenses:
1 $ years
2 $ years
3 $ years
4 $ years
5 $ years

Additional Recommended Life Insurance: $

 



[Life insurance & Estate Planning] [Life Insurance Quotes]

[Who Needs Life Insurance?] [How Much Life Insurance Do I Need?]
[What are the Different Types of Life Insurance?]
[Additional Uses of Cash Value Life Insurance]
[Comparing Cash Value Life Insurance Policies] [Replacement] [Definitions]

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