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Cash Needs
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| 1. Immediate money fund: To pay bills presented after death such as medical and hospital expenses, funeral expenses, attorney and executor fees, federal estate taxes and probate court costs. |
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| 2. Debt Liquidation: Amount needed to pay installment credit, school and auto liens and bills. |
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| 3. Emergency fund: For unexpected bills not payable from current income; auto or home repairs, medical bills. |
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| 4. Mortgage/Rent Payment Fund: Some families plan to pay off the mortgage if the insured person dies so the survivors have a debt-free home. |
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| 5. Child/Home Care Fund: To pay for new expenses created as a result of the death of a spouse formerly performing these duties without any cash outlay. |
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| 6. Education Fund: The costs of a four-year undergraduate degree vary but $20,000 per child is usually the minimum that should be provided. |
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| 7. Subtotal: Add lines 1 through 6. |
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| 8. Available Assets: Such as savings and existing life insurance, including amount provided by employer. |
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| 9. Cash needs requirement: Subtract line 8 from line 7. |
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Income Needs
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| 1. Income Replacement: Designed to provide the dependent spouse with a fixed income until retirement. Fifty-Seventy percent of annual take-home pay times the number of years until retirement. |
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| 2. Cash Requirements: Amount from line 9 "Cash Needs" Section. Note if negative amount. |
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| 3. Total Cash Needed: Add lines 1 and 2. |
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| 4. Other Assets: Cash, savings, checking retirement funds, existing life insurance, investments, value of your home, business, real estate and other property not included in line 8 of "Cash Needs" section. |
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| 5. Total cash needed minus assets: Line 3 minus line 4. |
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| Your potential life Insurance Needs: From line 5. |
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