This is meant to be only a STARTING POINT for estimating your insurance needs.
If you are serious about buying insurance, it is best to consult a trusted insurance
broker. For more information, check out the insurance links at the bottom of this page.

         
Insurance Needs Analysis
 
  Step 1: Calculate Personal Earnings Replacment  
 
  Present gross annual family earnings    
         
  Gross annual earnings to be continued   
         
  Existing sources of continuing income:      
         
    Spouse's salary    
    Estimated Social Security benefits*    
    Investment Income    
    Pension survivorship benefits    
    Other income    
    Total  
         
  Deficit in annual income desired    
         
  Capital needed (using capitalization of income      
    approach) net yield after inflation  
         
 
  Step 2:  Estimate Cash Needs  
 
  Emergency fund    
         
  Child care fund    
         
  Mortgage and other debt liquidation    
         
  Education fund     
         
  Other immediate cash needs      
    (such as unmet medical expenses, funeral      
    expenses, probate costs, and any federal      
    and state death taxes)    
         
  Total    
         
 
  Step 3:  Calculate Additional Life Insurance Needs  
 
  Personal earnings replacement need    
         
  Immediate cash needs    
         
  Total needs    
         
  Less present resources:      
         
    Cash and investments    
    IRAs    
    401(k), profit-sharing,      
      and other retirement       
      plan account balances    
    Other assets    
    Employer-provided life insurance:      
      Group-term life insurance    
      Other    
    Personally owned life insurance    
    Total    
         
  New life insurance needed    
         
 
AllFinancialMatters.com
 

*For more on Social Security visit Social Security Online.

For more information, check out these websites I found
listed in The Bogleheads' Guide to Investing:


AnswerFinancial.com
Insure.com
Insurance.com
InsWeb.com
Pivot.com
QuickQuote.com
QuoteSmith.com
Reliaquote.com

AllFinancialMatters.com

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