Life Insurance Need Calculator

This calculator will help you to decide how much life insurance you need if your survivors invest the life insurance benefits they receive.

Funeral cost, estate taxes, etc. ($):
Amount needed to pay off non-mortgage debt ($):
Amount needed in emergency fund ($):
Amount needed in college fund ($):
Expected average annual living expenses ($):
Expected spouse's average annual income after taxes ($):
Annual Social Security Benefits ($):
Spouse's current age (#):
Value of current liquid assets ($ total of savings, investments, etc.):
Expected survivor's investment strategy:
Life insurance needs:

Life Insurance May Answer Family Needs

Planning for your financial future, and the financial future of your family, takes careful consideration. A sound life insurance policy is one way to ensure that your family is financially protected in the event of your death. But how much life insurance is enough, and how do you know which policy will provide the financial security that you want for your family? After all, a life insurance policy needs to do more than simply cover funeral expenses. It needs to compensate for the inevitable loss of income, and it must also provide a sound financial platform for your family. The Life Insurance Need Calculator will help you to determine how much life insurance will be necessary to secure your family's financial future after you have gone.

Covering Your Family's Immediate Obligations

Following the death of a primary wage earner, a family is beset by a number of immediate financial obligations. Beyond the cost of the funeral itself, the family is also faced with the inevitable medical bills, legal expenses, and estate settlement costs that need to be discharged in a timely manner. There are also other immediate financial concerns, including resolving any outstanding debts, paying off the mortgage, and ensuring that college funds are in place for the decedent's children. These variables are the easiest to gauge when estimating how much life insurance an individual might need, and typically form the heart of the policy itself.

Estimating Your Family's Future Financial Needs

Under ideal circumstances, a life insurance policy should do more than simply cover the family's immediate financial needs. It should also lay the groundwork for a sound and secure financial future. This includes not only compensating for the loss of future income, but also providing investment funds that will serve to keep the family solvent and prosperous in the years ahead. These variables are more difficult to gauge and will depend on a number of factors, including the age and projected income of the widowed spouse, the value of the family's current assets, and the survivor's investment strategies. It will also be necessary to take into account the probability of the decedent's spouse or children being eligible for social security benefits, the sum total of those benefits, and their payout over time .

Using the Life Insurance Need Calculator

The Life Insurance Need Calculator is designed to help you estimate your life insurance needs, so you can choose a policy that will satisfactorily provide for your family's future. Keep in mind that any data you enter will likely only be an approximation, and your family's current financial situation is always subject to change. Using the information you provide, the calculator will estimate the level of life insurance that best suits your family's needs, with an emphasis on providing investment capital as a way to secure their future. The results of your calculations will depend on whether your survivors choose to invest their capital aggressively or conservatively. A sound life insurance policy is one of the best ways to secure your family's financial future, and to ensure that in the event of your death their financial needs have been provided for.