Life Insurance Worksheet

How Much Life Insurance Do You Need?

Life insurance protects the people

If you were gone tomorrow, could your family afford the expenses for your funeral?

you care about and who depend

Is someone counting on your income today? Is your salary needed to save for future

on you financially.

goals maybe to put a kid through college or to be able to afford retirement?

Name: ________________________________________________________
The following questions will help you determine your current need for life insurance. Keep in mind, your insurance
coverage can be adjusted up or down to satisfy your personal needs and budget.

CASH NEEDS

INCOME NEEDS

Final expenses:
(cost of funeral is
approximately
$8,508*) $_________________

Annual income
$_________________________

Mortgage $________________

Percent of current
income needed
for survivors ______________ %

Car Loan(s) $_______________

(75% is a good starting point for

most people)

Debts:

Credit Card(s) $_____________

Student Loan(s) $____________

Number of years ____________

(Years until retirement, or
number of years to replace
income if different)

Other debt $________________

resources available
Existing
Life Insurance $_____________

Savings $ __________________
Retirement Assets
(401k, IRA, etc.) $ ____________
Investments $ ______________
Other $____________________

Total Cash Needs

(add all debts to final expenses)

Total INCOME Needs

(Income x percent to
replace x number of years)

Total Resources
available
(add all resources available)

$_______________________(A)

$_______________________(B)

$_______________________(C)

Life Insurance Gap (A + B C) = $______________

For an online version of this worksheet (that does the math

for you and provides some basic recommendations), use our
online calculator at www.principal.com/lifeneeds.

* The national median cost of a funeral for calendar year 2014 was $7,181. If a vault is included, something that is typically required by a
cemetery, the median cost is $8,508. The cost does not take into account cemetery, monument or marker costs or miscellaneous cashadvance charges, such as for flowers or an obituary. Source: National Funeral Directors Association, www.nfda.org or http://nfda.
org/about-funeral-service-/trends-and-statistics.html

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