life insurance calculator Archives

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

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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Life Insurance Calculator

FREE LIFE INSURANCE CALCULATOR.

A life insurance calculator is important to help you figure out how much life insurance you really need. When purchasing life insurance, a life insurance calculator is important. 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 these 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.

massquotes Free Life Insurance Calculator will compute:

Step 1- Expenses. Estimate your family’s expenses that could be funded or paid off by life insurance in the case of our death. Items should include: Funeral & Estate Costs, Outstanding Mortgage, Outstanding debts (other than mortgage), How many children require college funding?

Step 2- Income. Estimate your family’s recurring income needs if you died today, including: Monthly Income Need, How many years should income be provided?

Step 3- Savings. Estimate your family’s sources of income, including: Your current amount of life insurance, family’s current saving & investments, your current retirement savings, monthly after-tax income from spouse, years spouse’s income will continue?

Step 4- Settings. Review and adjust the typical settings before our life insurance calculator gets to work. Items include: Inflation rate, College inflation, Assumed rate of return on savings, 4 year public college expense, 4 year private college expense.

Step 5- Results. Within seconds our life insurance calculator will suggest an appropriate amount of life insurance you require. 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.

Try MassQuotes free, powerful online life insurance calculator tool.

https://www.insurenowdirect.com/massquotes/Calculator.aspx

There’s no obligation: only information!

How Much Life Insurance Do I Need?

“How much life insurance do I need?” Is a common question when signing up for life insurance. “How much money do you have?” is the common, wise-guy response.

Determining how much life insurance you need requires an examination of your current and future financial obligations, along with the resources your family could tap.

Your future obligations are a combination of what it would cost to help your surviving family members meet immediate and ongoing needs like funeral costs, taxes, food, clothing, utilities, mortgage payments, and your future obligations like college and retirement funding.

The resources that your surviving family members could draw on to meet those obligations include your spouse’s or partner’s income, savings and investments, other income producing assets, and any life insurance you might already own.

The difference between the two—your financial obligations minus the resources your family has to meet those obligations—is the approximate amount of additional life insurance you need. If this sounds confusing, you’re not alone. That’s why most people turn to a qualified, licensed insurance professional when they want to figure out how much insurance they may need.

If you don’t feel you’re ready to speak with an agent or if you want a preliminary sense of your insurance needs before meeting with an agent, visit our Life Insurance Needs Calculator. This tool will walk you through the various questions you need to ask yourself and provide you with a rough estimate of how much life insurance you may need to protect your family.