Page 60 - Book5E

Estimate your life insurance need:
1. List your family’s anticipated monthly expenses (your monthly budget) (A)
2. Estimate your family’s monthly
after-tax income (from sources below) (B)
2a . Spouse’s current income
2b. Your family’s Social Security benefit (Estimate $0 if you are married with no children and your spouse is younger than 60; estimate $2,600 if you are married with one child; estimate $3,000 if you are married with more than one child.)
2c. Other income (such as from interest-bearing assets or retirement plan benefits)
3. Subtract (B) from (A) and enter it here to estimate your family’s unmet monthly income need (C)
x12
4. Multiply (C) by 12 and enter it here
to estimate your family’s unmet yearly income need (D)
5. Estimate the number of years your
family would have this unmet need (E)
(For example, if your death occurred tomorrow, approximately how many years would the need exist? Approximately how many years until your children would be self-supporting?)
6. Multiply (D) by (E) and enter it here to estimate your family’s total unmet income need (F)
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(Keep in mind this tool does not account
for inflation or interest on life insurance benefits.)