How Much Life Insurance Do You Need??

 

Life Insurance Analysis For:  ______________________________________

 

As a provider for your family, your loved ones have a life that would not be the quality it is without
you.  It’s especially important to protect your family’s quality of life to guard against the time you
are no longer there to provide for them.  Take a few moments to determine what your life insurance
needs could be by completing this simple worksheet.

 

Determining Formula:

Estimated
Amount:

1. Income Replacement

50% - 70% of annual take home pay times
the number of years until you plan to retire

 

$ ________


2. Mortgage/Rent


Your remaining outstanding mortgage or
estimate of rental costs until you retire.



$ ________


3. Outstanding Debt


Outstanding loans, credit card debt, and other debt.


$ ________


4. College Education


Estimated cost of college per year, multiplied
by 4 years (or 2), then by the number of
children.  Examples of Total Ann Expenses:
Private – Bates College          $51,400
Public – U Maine In-State      $21,174
So ME Comm College           $11,997





$ ________


5. Emergency Fund


25%-50% of your annual income

 


$ ________

6. Funeral Cost

Approximately $10,000

 

$ ________

7. Probate & Admin Fees

This can be anywhere from:
-- ZERO (if your property is owned jointly,
    you will distribute assets through trusts,
    and you have life insurance);
-- Up to 10% of your assets solely owned
    by you;
-- Or somewhere in between – use $30,000

 

 

 

 

 

 

$ ________


8. Total Cash Needed


Add parts 1 thru 7

 


$ ________

9. Total Available Assets

Cash, savings, checking, investments, retirement funds, existing life insurance.


$ ________


10. Total Life Ins Needed


Line 8 minus Line 9.


$ ________

 

Mail to: Rosemary Reid

         

 P.O. Box 3082

 Portland, ME  04104

Or  Fax 207-934-3131