Life Insurance Needs Analysis
Needs-Based Method — Erdman Financial Group
How much life insurance do you really need? Enter your current assets, anticipated expenses, and projected income after death. Adjust the inflation rate and expected investment return to see how these variables affect your coverage need.
Current life insurance coverageTotal existing coverage you already carry
$
Years insurance must lastHow long your family will need the proceeds
yrs
Inflation rateLong-term CPI average is approx. 3.0%
%
Return on investmentsExpected annual after-fee return on proceeds
%
Income tax rateApplies only to investment interest income
%
Cash and savingsChecking, savings, money market accounts
$
Home equity availableOnly equity you'd realistically liquidate
$
InvestmentsBrokerage, retirement accounts, etc.
$
Other assetsAny other assets you'd liquidate for family
$
Estate / inheritance taxesTaxes due on assets at death
$
Probate costsLegal fees for asset disbursement
$
Funeral costs
$
Uninsured medical costsInclude any deductibles or gaps
$
Debt repaymentMortgage, auto loans, credit cards, HELOCs
$
College fund for childrenLump sum set aside for education
$
Other one-time expenses
$
Spouse income from workExpected monthly take-home pay
$
Social Security — child benefitsGenerally continues to age 18 per child
$
Social Security — survivor benefitsTypically ceases when youngest child turns 16
$
Other monthly incomePension, rental, disability, etc.
$
Child care expensesDaycare, after-school, babysitting
$
Living expenses — children at homeAll monthly expenses except child care
$
Years until children leave home
yrs
Living expenses — after children leave
$
Children's education expensesMonthly during school years (if not lump-summed above)
$
Retraining / education for spouse
$
Other monthly expenses
$
🔒 Insurance Needs Analysis — Results
Total Insurance Needed
—
Additional Coverage Gap
—
Income Shortfall (PV)
—
One-Time Expenses
—
How we got there
Present value of income shortfall ( years)
One-time expenses at death
Less: available assets
Gross insurance need
Less: existing coverage
Net additional coverage needed
For illustrative purposes only. Results are estimates and not a guarantee of insurance coverage, investment performance, or financial advice.
All examples are hypothetical. Please consult with a licensed financial professional before making insurance or investment decisions.
Erdman Financial Group — 155 S Poplar Street, Elizabethtown, PA | Series 65 Licensed | ken@erdmanfinancial.com
Erdman Financial Group — 155 S Poplar Street, Elizabethtown, PA | Series 65 Licensed | ken@erdmanfinancial.com