Calculators - Lynch Financial Group

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Life Insurance Needs Calculator

Income Needs

Monthly living expenses of survivors

Do not include mortgage expenses.

Number of years income will be needed

Lump-sum expenses

Education fund for all children

Funding a cash reserve account

Outstanding mortgage balance

Other debts

Cost of final illness and funeral

Estate settlement costs

Although these costs can vary greatly, a rough estimate might be 3 to 5 percent of the total estate.

Current Resources

Cash and liquid savings

Other liquid assets available to pay off debt

Monthly replacement income from other sources

Current life insurance

Estimated inflation rate

Estimated after-tax rate of return on insurance proceeds

This worksheet is designed to quickly estimate the amount of life insurance protection you should have in place to meet survivor needs. It generates a graph that compares total cash need with current liquid assets and life insurance coverage available. It also generates a pie chart itemizing total cash need. Simply enter an amount for each category listed, then click the Calculate button to obtain the results.

To arrive at an estimate of additional insurance coverage needed, this calculator determines the present value lump-sum amount needed to support your survivors over the number of years indicated at the estimated inflation rate and rate of return. This calculation is based on the estimated monthly living expenses of survivors, less monthly replacement income from other sources. If monthly replacement income from other sources exceeds the estimated monthly living expenses of survivors, the estimated monthly expenses of survivors is not factored into the calculation.

The calculator adds the amount needed to provide ongoing income to survivors to the amount of cash needed for one-time expenses to determine total cash need. Cash and liquid savings, other liquid assets available to pay off debt, and current life insurance proceeds available are subtracted from total cash need to determine additional life insurance need.

This calculator cannot account for all financial considerations , and should be used only as a general guide. Discuss your life insurance needs with a qualified financial professional.

Life Insurance Needs Calculator Chart

Your total cash need, based on the inputs above, is $1,020,933.
Subtracting out your current liquid assets and current life insurance coverage leaves an additional life insurance need of $520,933.

This chart shows an itemizing of your total cash need.
This life insurance needs analyzer does not include every financial consideration that may affect you, and should be used only as a guide.

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Assumptions

To arrive at an estimate of additional insurance coverage needed, this calculator determines the present value lump-sum amount needed to support your survivors over the number of years indicated at the estimated inflation rate and rate of return. This calculation is based on the estimated monthly living expenses of survivors, less monthly replacement income from other sources. If monthly replacement income from other sources exceeds the estimated monthly living expenses of survivors, the estimated monthly expenses of survivors is not factored into the calculation.
The calculator adds the amount needed to provide ongoing income to survivors to the amount of cash needed for one-time expenses to determine total cash need. Cash and liquid savings, other liquid assets available to pay off debt, and current life insurance proceeds available are subtracted from total cash need to determine additional life insurance need.
This calculator cannot account for all financial considerations , and should be used only as a general guide. Discuss your life insurance needs with a qualified financial professional.