Get a general sense of how much life insurance you need to protect your family. Before buying life insurance, it makes sense to consult with an insurance professional for a more thorough analysis of your needs. This worksheet assumes you died today.

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Total annual income your family would need if you died today

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What your family needs, before taxes, to maintain its current standard of living

(Typically between 60% - 75% of total income)

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Annual income your gamily would receive from other sources. For example, spouse’s earnings or a fixed pension.

(Do not include income earned on your assets, as it is addressed later in the calculation)

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Income to be replaced

Subtract line 2 from line 1

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Capital needed for income

Multiple line 3 by appropriate factor in Table A.

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Expenses

Funeral And other final expenses

Typically the greater of $15,000 or 4% of your estate

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Mortgage and other outstanding debts

Include mortgage balance, credit card balance, car loans, etc.

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Capital needed for college

(2013 - 2014 average 4-year cost: Private $163,668; Public $73,564)

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Total capital required

Add items 4, 5, 6 and 7

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Income

Savings and investments: Bank Accounts, money market accounts, CSs, stocks, bonds, mutual funds, annuitites. etc.

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Retirement savings: IRAs, 401(k)s, SEP plans, SIMPLE IRA plans, Keoghs, pension and profit sharing plans

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Present amount of life insurance

Including group insurance as well as insurance purchased on your own

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Total income producing assets

Add lines 9, 10 and 11

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Life insurance needed

Subtract line 12 from line 8

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