Calculate and Graph Your Life Insurance Needs
This worksheet is designed to quickly estimate the amount of life insurance protection you should have in place to meet survivor needs. It generates a graph that compares total cash need with current liquid assets and life insurance coverage available. It also generates a pie chart itemizing total cash need. Simply enter an amount for each category listed, then click the Calculate button to obtain the results. *In the section at the top marked “Optional Subtitle,” you may personalize the graph for printing purposes. To begin your session, click on the link below:
To arrive at an estimate of additional insurance coverage needed, this calculator determines the present value lump-sum amount needed to support your survivors over the number of years indicated at the estimated inflation rate and rate of return. This calculation is based on the estimated monthly living expenses of survivors, less monthly replacement income from other sources. If monthly replacement income from other sources exceeds the estimated monthly living expenses of survivors, the estimated monthly expenses of survivors is not factored into the calculation.
The calculator adds the amount needed to provide ongoing income to survivors to the amount of cash needed for one-time expenses to determine total cash need. Cash and liquid savings, other liquid assets available to pay off debt, and current life insurance proceeds available are subtracted from total cash need to determine additional life insurance need.
This calculator cannot account for all financial considerations, and should be used only as a general guide. Discuss your life insurance needs with a qualified financial professional.