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```					                LIFE INSURANCE NEEDS ASSESSMENT OPTIONS

Option 1: The Expense Needs Formula

The Expense Needs formula itemizes your family needs to determine how much insurance is necessary.

First, consider the following items, enter a value for your situation and calculate the total:

Expense Category
Funeral Expenses                                               Usually \$5-15k
Legal Fees                                                     Set by court
Estate & Gift Taxes                                            A % on estates over \$600,000
Probate Fees                                                   Authorized by probate courts
Medical Deductible                                             Consider your deductible ceilings
Emergency Fund                                                 6-9 months expenses
Mortgage Expense                                               Mortgage balance
Rent                                                           Rent for 10 years
Debts & Loans                                                  Enough to pay all debts
College                                                        Total projected college costs
Child Care                                                     Total from infant until school
Private Schooling                                              Costs until college
Maintenance                                                    Cleaning and repairs for 10 years
Total: \$                                  -

Asset Category                                                                                                    Value
Bank and Savings Accounts
Surviving Spouse Projected Income
Social Security Survivorship Benefit
Current Life Insurance
Other Assets
Total: \$                                  -

Then calculate your approximate coverage needs:

Total Expenses minus Total Assets (from above)                                                   Coverage Need:   \$                             -

Option 2 - The Income Replacement Formula
The Income Replacement Formula is based on your annual income and is used if you’re still working. There are a couple of different versions of this
method.

First, if you’re already retired, include your pension if it ends at your death. Simply multiply your annual income by how many years you want your
family supported (usually until you retire). It would look like this:

Amount
Annual Income
Number of years until retirement                                                                      X
Approximate Additional Life Insurance Required: \$                                          -

Option 2a - Income Replacement Formula
Another income replacement method is to multiply your annual income times 10. It would look like this:

Amount
Annual Income
Number of years until retirement                                                                      X                                             10
Approximate Additional Life Insurance Required: \$                                          -

Option 2b - Income Replacement & Mortgage Payoff Formula
One last income replacement method is to multiply your annual income times 5, and also add in the balance of your mortgage. It would look like
this:

Amount
Annual Income
Number of years until retirement                                                                              X
Balance owed on your mortgage                                                                                 +
Approximate Additional Life Insurance Required: \$                                          -