| Consider These Needs |
Provides For |
Rule Of Thumb |
Your Coverage
Needs |
Final
Expenses |
Funeral costs, cemetery plot, legal, probate fees, etc. |
Final expenses range from $4,000 - $12,000 depending on your area.
|
$
|
Emergency
Fund |
"Rainy day" expenses incurred by survivors, such as home & auto repairs, tax obligations, etc.
|
An ample amount for family to meet unexpected expenses.
|
$
|
Personal
Debts |
Settlement of personal debts (auto, school, personal loans & credit cards).
|
Sum of all outstanding personal debt.
|
$
|
| Mortgage Protection |
Payment or paydown of mortgage balance to leave survivors in a more favorable financial position.
|
Balance of mortgage principal.
|
$
|
| Education Protection |
Funding for current or future education needs of dependents.
|
No. of children X (Avg cost X 4 yrs)
e.g. 2 children at public college:
2 X $10K X 4yrs=$80,000
|
$
|
| 1997 Public University Avg Costs | $9,968 |
| 1997 Private University Avg Costs | $22,922 |
(published by the College Board)
|
| Income Replacement |
Future household income to offset the financial loss of a wage earner.
|
5-7 times gross income. For two-income households, consider how much of decedent's income would need to be replaced & for how long.
|
$
|
|
| Current Protection Amount |
|
Sum of all current life insurance policies and savings already in place.
|
$
|
