Life Insurance Calculator

SAMPLE

Your
Information

Monthly
Income Needed

Enter
the estimated amount your family would need every month to maintain
their standard of living.

Example
:  $10,000

Combined
Federal & State Tax Rate

Enter
combined federal & state tax rate expressed as a decimal ( e.g. 40 %
=0.40

Example:
0.40

Capital
NeededMonthly

(monthly
income/ 1-  tax rate)

Example:
$ 16,666

Capital
NeededAnnually

(monthly
capital x12 )

Example:
$200,000

Rate
of Investment Return

Enter
estimated rate of return expressed as a decimal rate (e.g. 8% =0.08)

Example:
0.08

Capital
Needed to Provide Annual Income

(
Annual needed Capital/ rate of investment return)

Example:
$2,500,000

Other
Expenses

Enter
combined total of all your other debts and future expenses( e.g., car
loan, student loan, credit card debt, child’s college tuition, final
expense or wedding)

Example:
$     50,000

How
much Capital do you Have?

(Add
all your assets)

Example:
$    500,000

Life
Insurance Coverage Estimate

Add
Annual Income + other Expenses – assets

Example:
$ 2,050,000