Life Insurance Calculator

life insurance calculator

Life Insurance Calculator

When purchasing life insurance, the question really isn’t how much you need, but how much capital your family will need at the time of your death, which depends on two variables:

  • Expenses. How much will be needed at death to meet immediate obligations? This amount takes into account all final expenses: uncovered medical bills, funeral and estate-settling costs, outstanding debts, mortgage balance, and college costs to name a few.
  • Income. How much future income is needed to sustain the household? This is the number you’ll arrive at after calculating the “present value” of cash-flow streams your family will need after your death.

Click Here: To Try MassQuotes’ online life insurance calculator!

Sample Questions and results:

Estimate your family’s expenses that could be funded or paid off by life insurance in the case of your death:

Funeral & Estate Costs

Outstanding Mortgage

Outstanding Debts (other than mortgage)

How many children require college funding?
Total projected college costs (tuition plus all other costs such as room and board, books, etc.), less current funds in the child’s name. The default tuition amounts being used are the averages for a 4-year education at a public or private school as provided by The College Board and can be viewed and modified in the calculator Settings.

Estimate your family’s expenses that could be funded or paid off by life insurance in the case of your death:

Funeral & Estate Costs

Outstanding Mortgage

Outstanding Debts (other than mortgage)

How many children require college funding
Child 1
Child 2
Child 3

Estimate your family’s recurring income needs if you died today:

Monthly Income Need

How Many Years Should Income Be Provided
12

Estimate your family’s sources of income:

Your Current Amount of Life Insurance

Family’s Current Savings & Investments

Your Current Retirement Savings

Monthly After-Tax Income From Spouse

Years Spouse’s Income Will Continue

Review and adjust the typical settings before calculating your results:

Inflation Rate

College Inflation

Assumed Rate of Return (on savings)

4-Year Public College Expense

4-Year Private College Expense

Your need for life insurance:

$1,362,216

Should you die, the financial impact on your dependents is the loss of your income as well as the immediate expenses associated with your death. The death benefit offered through life insurance serves as replacement income for a period of time to help your family build a more financially secure future.

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