This worksheet provides a quick and simple method to estimate the amount of life insurance you will need.    1.   Annual income your family would need if you die today Enter a number that's typically between 60%-80% of total income. Include all salaries, dividends, interest, and any other sources of income.      2.   Annual income available to your family from other sources Enter a number that includes dividends, interest, spouce earnings, and social security.      3.   Annual income to be replaced      4.   Funds needed to provide income for how many years? --Select One-- 10 Years 15 Years 20 Years 25 Years 30 Years 35 Years 40 Years 45 Years 50 Years 55 Years 60 Years      5.   Burial final expenses, emergency fund The average cost of an adult funeral is about $10,000      6.   Mortgage and other debts Include mortgage balance, credit card debt, car loans, home equity loans, etc.      7.   College costs 2005-2006 average annual cost of a four-year education: public college-$ 15,566; private college-$ 31,916.2     Annual Amount No. of Yrs in College Child 1 multiplied by Child 2 multiplied by Child 3 multiplied by Child 4 multiplied by Child 5 multiplied by      8.   Total Capital Required   9.   Savings and investments Bank accounts, CDs, stocks, bonds, mutual funds, real estate/rental property, etc.   10.   Retirement savings IRAs, 401(k) plans, SEPs, pension and profit sharing plans   11.   Present amount of life insurance Include group insurance and personal insurance purchased on your own   12.   Total of all assets   13.   Estimated amount of additional life insurance needed

Contact Modern-Wealth to answer your questions and help you with the right insurance for your family's future.

 

1 Inflation is assumed to be 3%. College costs indexed at 6%. The rate of return on investments is assumed to be 6% after tax. 2 Source: The College Board, Trends in College Pricing 2005. Costs include tuition, room, board, books and supplies, transportation, and other expenses. 3 Source: Prudential Insurance Company of America, "How Much Life Insurance?" 2007. Online implementation Copyright 2008 CyberVillage Networkers, Inc.