| Determining My Life Insurance Needs (page 353) |
| NOTE: Results here may differ slightly than when using Appendix A in text due to rounding. |
| Factors Affecting Need | Sample Only | Insert Your Own Figures |
| 1. Income-replacement needs* | $823,219 |
| 2. Final-expense needs | $ 12,000 |
| 3. Readjustment-period needs | $ 19,000 |
| 4. Debt-repayment needs | $ 10,000 |
| 5. College-expense needs | $ 75,000 |
| 6. Other special needs | $ - 0 |
| 7. Subtotal (combined effects of items 1–6) | $ 939,219 |
| 8. Government benefits** | $390,370 |
| 9. Investment Assets Available | $0 |
| 10. Current Life Insurance In Place | $ 98,000 |
| 11. Life insurance needed | $ 450,848 |
| *Income Replacement Needs Calculator |
| Current Annual Income | $56,000 |
| Percent of Annual Income To Be Replaced | 75% |
| Annuity Amount (% desired of annual income) | $42,000 |
| i (assumed interest rate | 3.00% |
| n (number of annuity payments) | 30 |
| PV (present value) of Income Replacement Needs | $823,219 |
| **Present Value of Social Security Benefits Calculator |
| Estmated Monthly Benefit (See Appendix B in Text) | $2,725.00 |
| Estimated Annual Benefit | $32,700 |
| i (assumed interest rate | 3.00% |
| n (number of annuity payments) | 15 |
| PV (present value) of Government Benefits | $390,370 |
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FIN420_r6_Worksheet_48.xls
