Estimate of your life insurance coverage needs

Life insurance provides peace of mind and protects your family's future.

For a rough estimate of your coverage needs, consider the following to determine the life insurance:

Outstanding Debt

The total dollar amount required to pay off your credit cards, lines of credit, auto loans and personal loans.

Mortgage Balance

The balance remaining on your mortgage and/or home equity loans.

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Pay less for your auto and home insurance:

http://www.autoandhomeinsurance.org/

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Other Debt

The total dollar amount required to pay off your credit cards, lines of credit, auto loans and personal loans.

Emergency Fund

An emergency fund can help fill the gap between a short-term loss of income and a redirected long-term solution. It is generally invested in a liquid account (CD or money market) so that it is easily accessible, and generally provides for up to 3 to 6 months of living expenses. In the event of death, proceeds from the life insurance policy can be used to establish this fund.

Replacement Income/Family Expenses

The amount of your current after-tax monthly income you will need to continue to provide for you family's expenses. This amount typically includes the cost of food, clothing, transportation, utilities, home repair, insurance and childcare.

Annual Income

Consider all of your income from all sources for replacement income. Salary and bonuses -- as well as any investment income.

Years of Income

The number of years your survivors will need replacement income. Generally, this period lasts until retirement. However, children moving out of the home, an expected inheritance, etc. may affect the length of time.

Mortgage Payment

The monthly amount of your mortgage and/or home equity loans.

Rental Payment

The monthly amount you pay for rent.

Current Annual College Cost

The annual college expenses for each of your children you expect to attend college. This amount will depend on the type of college they attend as well as whether they live at home.

Number of Years Until College

The number of years until each child is expected to enter college.

Number of Years In College

The number of years each child is expected to attend college.

Liquid Assets

Liquid assets are assets that can be quickly turned into cash, such as bank accounts, mutual funds, stocks, bonds, etc. Enter the total value of all your liquid assets. Do not include real estate or assets specifically intended for retirement, such as IRAs or 401(k) funds, in this amount.

Life Insurance

Consider any life insurance amounts provided by your employer in case of death. However, keep in mind that if you leave your current job, this coverage will no longer be available to you.

Percentage of Income

Select the percentage of your current income you would like your life insurance policy to provide. A standard percentage is 80%, but your family's needs may differ.

Savings

Consider current savings amounts..

Final Expenses

Final expenses occur as the result of the death of an individual.
Final expenses may typically range from $10,000 to $30,000 per individual and do not include State and/or Federal estate taxes. Your needs may differ from this amount.