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Life Insurance Needs Calculator
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Back to section 3, step 3 of the workbook Life Insurance Needs Calculator

Get Term Insurance Quote

Information

If anyone depends on your income, life insurance is a must in case you die prematurely. One rule of thumb is that you need coverage equal to five to seven times your annual take-home pay, but your needs may be more or less. So use this Life Insurance Needs Calculator to make an estimate.

Please note: We are providing this abbreviated life insurance calculator as an easy way for you to start estimating your survivors' needs. The calculator is an educational tool that provides only a rough estimate of your life insurance needs, and the results are not intended to be an accurate analysis of your specific needs. The results are hypothetical, and are not intended to offer tax, legal, financial planning, or estate planning advice.


 Age of Partner:
leave blank if no partner
   years
 Age of Children:
enter ages separated by spaces and/or commas
   years

Survivors Income

 Partner's Current Annual Net Income1:
(after taxes)
 $
 Other Annual Income Available
to Your Survivors:
 $
 Annual Rate of Increase in Income2:    %

Expenses

 Estimated Annual Expenses:
of all your survivors,3 not including payroll taxes
 $
 Estimated Annual Expenses:
of your partner only,4 not including payroll taxes
 $
 How Long You Want to Provide
for These Expenses:
   years
 Mortgage Balance:
If you have mortgage life insurance that will
pay off your outstanding mortgage, enter zero.
 $
 Balance of Other Debts to Pay Off:
(vehicle loans, credit card, education loans, etc. Don't include
those debts already covered by credit life insurance.)
 $
 Medical and Funeral Expenses:
Funeral expenses average $4000, according to
the Federated Funeral Directors of America.
 $
 Estate Expenses:
Including probate costs, which average from 3% to 8% of your
estate, and estate taxes for taxable estates currently over $1.5 million.
 $
 Cover cost of children's college?:   No Yes
 Projected Annual College Costs:
According to the College Board, it now costs
an annual average of $20,339 for an in-state public
university, and $40,476 for a private college.5
 $
 College Cost Projected Inflation Rate:
According to the College Board, increases in college costs
last year averaged between about 5% and 6%.
   %

1This income is assumed to stop when your partner reaches age 65.

2Enter the amount you expect your survivorsí income to increase annually. To be conservative, you may want to use the historical average annual rate of inflation since 1926 of 3%, or a lower figure.

3One rule of thumb is to estimate your survivors' living expenses at about 60% to 70% of your current household gross income, or more accurately, your current household living expenses. This estimate doesn't include your mortgage and other outstanding debt payments or college expenses, because the calculator assumes these expenses will be paid off with the proceeds from your life insurance coverage.

Taxes on distributions from investments and savings are not calculated separately but are assumed to be part of the estimated expenses that you specify.

4If you have children, this value will be used for your partner's living expenses after all the children have reached 18.

5This includes tuition and fees, room and board, books and supplies, transportation, and other personal expenses.


Data is currently saved for 1 hour(s).

Representatives are registered, securities are sold, and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, 2000 Heritage Way, Waverly, Iowa 50677, toll-free (800) 369-2862. Nondeposit investment and insurance products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by CEFCU, or any affiliated entity. The representative may also be a financial institution employee that accepts deposits on behalf of the financial institution. CBSI is under contract with CEFCU, to make securities available to members. CBSI is a registered broker/dealer in all fifty states of the United States of America.


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