Annual income your family would need if something were to suddenly happen to you
Enter a number that's between 60 - 80% of total income depending on how much you think you'll need. Include all salaries, dividends, interest, and any other sources of income.
Annual income available to your family from other sources
Enter a number that includes dividends, interest, spouse's earnings, and Social Security.
Annual income to be replaced
This value represents the difference between Line 1 (Annual income your family would need if something were to suddenly happen to you) and Line 2 (Annual income available to your family from other sources).
Number of years for which funds would be needed to provide income
This value represents the number of years for which funds would be needed. Inflation is assumed to be %. College costs are indexed at %. The rate of return on investments is assumed to be % after tax. The return is purely hypothetical and is used for illustrative purposes only. Performance results are not indicative of any particular investment. Actual results and investment risks will vary.
Funeral expenses, emergency fund
Nationally, many funerals cost well over $10,000 - Federal Trade Commission - Retrieved on October 4, 2010 from http://www.ftc.gov/bcp/edu/pubs/consumer/products/pro19.shtm
Mortgage and other debt
Include mortgage balance, credit card debt, car loans, home equity loans, etc.
College costs
2010-2011 average annual "total" cost of a four-year education: public in-state college: $16,140; public out-of-state college: $28,130; private college: $36,993. Source: The College Board, Trends in College Pricing 2010. Costs include tuition, room, board, books and supplies, transportation, and other expenses for a resident. The College Costs numbers are the 2010-2011 national average for a four year college or university. College costs are indexed at %.
The Value of All You Do
Calculate the estimated value of daily activities you perform to support your household. For assistance in determining the estimated value of these often overlooked activities, visit our other calculator, The Value of All You Do.
Total capital required
This value represents the sum of factored replacement income, funeral expenses, mortgage and other debt, college costs, and The Value of All You Do.
Savings and investments
Bank accounts, CDs, stocks, bonds, mutual funds, real estate, and rental property, etc. The rate of return on investments is assumed to be % after tax. The return is purely hypothetical and is used for illustrative purposes only. Performance results are not indicative of any particular investment. Actual results and investment risks will vary.
Retirement savings
IRAs, 401(k) plans, SEPs, pension and profit-sharing plans. The rate of return on investments is assumed to be % after tax. The return is purely hypothetical and is used for illustrative purposes only. Performance results are not indicative of any particular investment. Actual results and investment risks will vary.
Present amount of life insurance
Include group insurance and personal insurance purchased on your own.
Total of all assets
This value represents the sum of savings and investments, retirement savings, and the present amount of life insurance.
Estimated amount of additional life insurance needed
This value represents total capital required less the total of all assets.