How Much Life Insurance

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How Much Life Insurance Do I Need?

Monthly household expenses

excluding primary residence mortgage principal and interest

Deceased spouse's monthly expenses

Gross household income needed every month

Surviving spouse's after-tax month income

Net replacement income needed every month

Needed every year = x 12 months

Your effective income tax rate %

as a percentage (example: 4% would be 4)

Pretax amount needed per year

Estimated net reliable annual return percent

Example 5% gross less 1% for investment fees = 4

Gross life insurance coverage needed on your spouse's life

One year of replacement income

(to be used in first year)

College, camp, and after school care expenses all years needed

(if not already budgeted or saved)

Primary residence mortgage payoff

Final expenses for deceased

(funeral, burial, outstanding debt if not already included or saved)

Assets and personally owned life insurance on insured spouse's life

Net amount of life insurance needed