for charandry

Unit 6

[AB104: Personal Financial Management]

Unit 6 Assignment: Life Insurance Analysis

Hopefully you will never need life insurance, but life’s challenges are much easier to bear when you

have life insurance to protect yourself. In this Assignment you will determine the amount of life

insurance you will need to cover your final expenses.

Complete the following in the AB104 Financial Plan W orkbook. Detailed directions are provided in the

AB104 Financial Plan W orkbook Excel file.

 6.1 Life Insurance Needs Analysis

 7.1 Stock Tracker

Review the Final Project Timeline, and the Rubric and Privacy Statement below before starting

this Assignment.

Directions for Submitting Your Assignment:

When you are ready to submit the Assignment, after you have saved the master file, save an

additional copy as Username-AB104 Financial Plan W orkbook-Unit#.xlsx (Example: TAllen- AB104

Financial Plan W orkbook Unit 6.xlsx). Submit the file to the Unit 6: Assignment Dropbox by the end of

Unit 6.

AB104 Unit 6 Assignment: Life Insurance Needs Analysis Worksheet 6.1

Content (45 points)

Points

Possible

Points

Earned

Determined costs at death for self and spouse by entering costs for:

 Uninsured medical expenses (deductible and co-pay)

 Funeral expense

 Settlement of Estate (estimate 4% of assets)

 State inheritance taxes (if applicable)

 Cost for counseling

10

Determined total lump sum needs by entering information about outstanding debts and lump sum needs as follows: Entered outstanding debts:

 Mortgage

 Car loans

 Credit Cards

 Other

Entered other lump sum needs:

 Education costs for surviving family members

 Spouse retirement fund

 Household emergency fund (3 x monthly expenses)

14

Unit 6

[AB104: Personal Financial Management]

Entered cost of household maintenance to determine net income shortfall:

 Annual after-tax income of deceased

 Support care expenses (child care, elder care, housekeeping)

 Estimated reduced expenses (no longer needed due to d e a t h )

 Annual social security survivor benefits

8

Entered number of years maintenance needed (line 27). 7

Determined total life insurance needed by entering resource amounts available

to meet needs:

 Entered total current savings and investments

 Entered amount of group life insurance

 Entered Social Security Lump Sum benefit

6

Total 45

AB104: Privacy Statement

One purpose of this course is to enable you to create your own personal financial plan. Any and all information

you submit will be kept in the strictest confidence. The information will not be used for anything but grading

purposes and no files with your personal information will be kept. If you are not comfortable using your current

personal financial information, you can use projections of how you want your finances to look after graduation or

use a multiplier to adjust the numbers.