Calculate your life insurance needs

Estimate your family's expenses in case of your death

Final expenses

Close

Typically the greater of $15,000 or 4% of your estate. This would include uncovered medical costs, funeral expenses, and final estate settlement costs. Note: If your estate is over $1,500,000 your final expenses may be much higher due to federal and state estate or inheritance taxes.

?

Outstanding mortgage

Close

Mortgage payment fund: Whether or not your survivors would use life insurance proceeds to pay off the mortgage right away, creating a fund to cover mortgage payments makes sense.
?

How many children require college funding?

Close

College funding: Total projected college costs (tuition plus all other costs such as room and board, books, etc.), less current funds in the child’s name. The tuition amount being used is for the average 4-year education and is provided by The College Board, which is $158,072 for private institutions and $71,440 for public institutions.
down ?

Total annual income your family would need if you died today

Total annual income?

Close

Total amount your family needs, before taxes, to maintain their current standard of living, typically 60%-75% of total income. Families with higher incomes typically fall into the lower end of that range.
?

What is your current savings and investments (not including retirement funds)?

Close

Includes bank accounts, money market accounts, mutual funds, CDs, bonds, stocks and other assets.
?

What are your current retirement savings?

Close

Includes 401(k), Keoghs, pension and profit sharing plans.
?

What is the value of the life insurance in force on your life?

Close

Includes individual policies, group term coverage available through work, and any other life insurance on your life payable to your family or for the benefit of your family. Do not include accidental death insurance or “double indemnity” insurance.
?
Back

Assuming your spouse would work following your death

Your spouse’s marginal tax rate?

Close

Marginal tax rate: This is the rate of tax you are paying on your highest dollars of income. For instance, in 2013 a married taxpayer earning $50,000 has a Marginal Tax Rate of 15%. That’s because earned income between $72,500 and $146,400 gets taxed at 25%. The lowest Marginal Tax Rate is 10% and applies to couples who earn less than $17,850. The highest Marginal Tax Rate is 39.6% for dollars earned in excess of $450,000.
?
Back

Extras

Back

Analysis

Your need for life insurance:

Should you die, the financial impact on your dependents is the loss of your income as well as the immediate expenses associated with your death. The death benefit offered through life insurance serves as replacement income for a period of time to help your family build a more financially secure future.

See Calculations
Back

Calculations

Lump Sum Needs at Death:
Final expenses: $
Outstanding debts: + $
Mortgage: + $
College funding: + $
Total lump sum needs: = $

Income Needs:
Annual income to be provided: $
Number of years to provide income:
Estimated inflation rate: %
After-tax net investment yield: %

Calculation & Results:
Present value of income needs*: $
Lump sum needs: + $
  = $
Less current investment capital: - $
Less existing life insurance: - $
Less present value of spouse’s income*: - $
Your need for additional life insurance: = $
Back