Current life insurance coverage

Total amount of life insurance coverage you currently have for yourself.

Years insurance must last

Number of years your spouse will need to use your insurance proceeds to provide for living expenses and income.

Inflation rate

This is what you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI). From 1925 through 2022 the CPI has a long-term average of 3.0% annually. Over the last 40 years the highest CPI recorded was 13.5% in 1980. For the 12 months ending October 31^st 2022 the CPI for All Urban Consumers (CPI-U) was 7.7% as reported by the U.S. Bureau of Labor Statistics. Your total expenses are increased by this rate for each year you require income. The income you would receive from your life insurance policy is used to cover any shortfalls between your expected income from all sources and your expenses.

Return on investments

The annual rate of return for your investments. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31^st 2022, had an annual compounded rate of return of 12.6%, including reinvestment of dividends. From January 1, 1970 to December 31^st 2022, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.7% (source: www.spglobal.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.

It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that investment funds and/or investment companies may charge.

Insurance products may additionally include mortality, expense risk charges, cost of insurance, administrative, and surrender charges that will have a significant impact on the total rate of return for the investment.

Income tax

This is your income tax rate. Changing this rate only affects your interest income from your investments. All other income and expenses should be entered on an after-tax basis.

Cash and savings

Total you have in cash, checking accounts, savings accounts or other accounts that can be used to help cover expenses.

Home equity

Total amount of equity in your home that you are willing to use toward your living expenses. Only include the home equity that you consider available to use toward your living expenses. For example, the equity you would make available by selling your home and moving into a smaller one.

Investments

Total value of all investments that you are willing to use toward your living expenses.

Other

Any other assets that you may be willing to sell or liquidate.

Estate or inheritance taxes on assets

Taxes that are required to be paid on your assets at death.

Probate costs

Probate costs cover a state's legal fees for disbursing the assets of the deceased. You may incur significant probate costs, depending on your state of residence, even if you have a will.

Funeral costs

All costs required to cover the cost of the funeral.

Uninsured medical costs

Any medical costs that are not covered by your medical insurance. Make sure to include any deductibles.

Debt repayment

Credit card debt, auto loans, home equity loans, mortgages or other debt that you wish to repay. Providing the ability to repay these loans if you were to die can significantly help your family meet their monthly living expenses.

College fund for children

Amounts you wish to provide your surviving children to cover future college expenses.

Other expenses

Any other items that you need to pay with your insurance proceeds.

Spouse income from work

Income expected from your spouse after your death. If your spouse needs education or retraining, make sure that the starting year for this income provides adequate time to complete.

Social Security child benefits

Depending on your work history, your children may qualify for Social Security benefits. A surviving child's Social Security benefit generally continues to age 18. Once the children are gone, Social Security benefits are generally not available until the widow/widower turns age 60.

Social Security survivor benefits

Depending on your work history, your family may qualify for Social Security benefits. Typically, Social Security benefits for the widow/widower cease when the youngest child turns 16. Although the child's benefit generally continues to age 18. Once the children are gone, Social Security benefits are generally not available again until the widow/widower turns age 60.

Other income

Any other monthly income that your family may receive after your death.

Child care expenses

Total monthly expenses for childcare.

Living expenses with children at home

Total monthly expenses while your children are living at home. This should include all monthly expenses except child care.

Living expenses with children gone

Total monthly expenses after your children have left home. This should include all monthly expenses.

Children's education expenses

Monthly expenses for your children's education expenses. If your children have not yet entered college, and have no other educational expenses, leave this amount at zero and enter an amount in the college fund entry fields in the total expenses at death section.

Retraining and education for spouse

Monthly expenses expected to cover any cost of education or retraining for your spouse to re-enter the workforce.

Other expenses

Any other monthly expenses not included above.