Life Insurance Needs Analysis

A simple review of your financial status and future requirements can help determine how much life insurance you and your spouse may need to protect your family properly. Use the following guidelines to complete the Life Insurance Needs Analysis Worksheet.

Current Cash Requitements

Final Expenses

This estimated cost includes medical expenses not covered by your healthcare policy (deductible plus any coinsurance), funeral expenses (estimate $5,000 to $10,000) and probate costs.

Enter estimated final expenses:

Emergency Fund

Financial experts recommend that you save up to six months salary for any household or personal emergency that may arise. The emergency fund might be larger or smaller, depending onyour family's circumstances.

Enter estimated emergency funds:

Mortgage Balance

It's often desirable to select a life insurance benefit large enough to pay off the mortgage balance.

Enter estimated mortgage balance:

Outstanding Loans

Determine total outstanding debts (principal), such as auto loans, personal loans, credit card balances and so forth.

Enter estimated outstanding loans:

Education Costs

Every October, the College Board releases its Trends in College Pricing report that highlights college cost increases and trends. While costs can vary significantly by region and individual college, the College Board publishes average cost figures, which are based on its survey of 3,500 colleges across the country.

Here are some recent report highlights:

  • At four-year public colleges for in-state students, tuition and fees increased an average of 7.9% from last year to $7,605, and room and board costs increased an average of 4.6% to $8,535. Total average cost for 2010/2011 is $16,140.

  • At four-year public colleges for out-of-state students, tuition and fees increased an average of 6.0% from last year to $19,595, and room and board costs increased an average 4.6% to $8,535. Total average cost for 2010/2011 is $28,130.

  • At four-year private colleges, tuition and fees increased an average of 4.5% from last year to $27,293, and room and board costs increased an average of 3.9% to $9,700. Total average cost for the 2010/2011 year is $36,993.

"Total average cost" includes tuition and fees, room and board, books and supplies, transportation, and a small amount for miscellaneous expenses.It is significant to note that over the past decade, college tuition and fees have increased nearly 140% more than the overall inflation rate. To read updated Trends in College Pricing report, visit

Enter your estimated education costs:

Total Current Cash Required


Long-Term Cash Requirements

Monthly Income Requirement

Take the annual gross income your family will need to supplement income receivable from existing sources. Generally, it is estimated that a family will require 60-80 percent of prior total income following the death of one spouse. Existing sources of income could include the surviving spouse's earnings, Social Security survivor benefits, rental income and employer-provided benefits. Determine only the additional amount needed after considering all available sources of income, then divide by 12 months. For example: $40,000 x .70 ÷ 12 = $2,333 (monthly income replacement amount).

Enter estimated monthly income requirement:

Cash Reserve Factor

Select the number of years your family will require montly income. This will determine your cash reserve factor.This factor is based on a time value analysis for determining future cash needs, assuming a 3 percent annual increase in inflation and a 4 percent return on the lump-sum death benefit.

10 years
15 years
20 years
25 years
30 years


Total Long-Term Cash Required



Enter amounts for the following assets:

Cash and Savings:
IRA, KEOGH, 401(k) and Pension:
Life Insurance in Force:
Other Assests:

Total Life Insurance Needed

Request A Quote

Now that you've completed your needs analysis, click here to request a quote for your life insurance policy.