Genworth Financial Companies Calculator

How much life insurance do you need?

How much life insurance do you need? Enter your current assets, expenses, income and let us determine how much life insurance you need. You can also adjust the inflation rate and your expected rate of return to see how these variables can impact your insurance needs. Press the "View Report" button to see a year by year breakdown of your family's possible future income and expenses.

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*Both the future expenses and future income totals are expressed as the amount of cash required today, invested at your expected rate of return, to equal the total future cash flow. For example, if you are expecting to receive $1,000 in exactly one year, that $1,000 has the same value as $909 today invested at 10%. Our totals show these current amounts to estimate the life insurance you may need today to cover your family's future expenses after their future income is taken into account.

Definitions

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

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

Expected inflation rate
What you expect for the average long-term inflation rate. Your family's total expenses are increased by this rate for each year they need income. The income they receive from life insurance proceeds is used to cover any shortfalls between expected income from all sources and their expenses.

Expected rate of return on investments
This is the annually compounded rate of return you expect from your investments before taxes. The actual rate of return is largely dependent on the type of investments you select. The assumed rates of return do not predict the results of any particular investments. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are 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.

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

Home equity
Total equity in your home that may be available to use for living expenses. This might include, for example, equity the family may be able to realize by selling your home and moving into a smaller one.

Investments
Total value of all investments you believe may be available for your family's living expenses.

Other
Any other assets your family may be willing to sell.

Estate or inheritance taxes on assets
Federal and state taxes that must be paid because of assets you own.

Probate costs
Probate costs cover the costs of distributing your assets after you die. Your family may incur significant probate costs, even if you have a will.

Funeral costs
All costs required to cover the cost of the funeral.

Uninsured medical costs
Any medical costs not covered by medical insurance. Make sure to include any deductibles.

Debt repayment
Credit card debt, auto loans, home equity loans, mortgages or other debt that you want to repay. Providing the ability to repay these debts can significantly help your family meet its monthly living expenses.

Other expenses
Any other items that your family may need to pay from the life insurance proceeds.

College fund for children
Amounts you want to provide to cover future college expenses.

Spouse's income from work
Income you expect your spouse will earn after you die. If your spouse needs more education or additional training, make sure that the starting year for this income provides adequate time to complete that education.

Social security survivor benefits
Depending on your work history, your family may qualify for Social Security benefits. Typically Social Security benefits for your spouse ends when your youngest child turns 16. Thereafter, Social Security benefits are generally not available until your spouse turns age 60. The child's benefit generally continues to age 18.

Living expenses with children at home
Total monthly expenses while your children are living at home. This should include all expenses except child care (which is entered by pressing the button labeled 'Living Expenses Calculator' and entering an amount for 'Child care expenses').

Living expenses with children gone
Total monthly expenses after your children have left home.

Children's education expenses
Monthly expenses for your children's education. 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 for children' section by pressing the button labeled 'Expenses at Death Calculator'.

Retraining and education for spouse
Monthly expenses to cover any education or additional training for your spouse to re-enter the workforce.

Other expenses
Any other monthly expenses not included above.

Savings balance
Other funds available to your family after expenses at death have been covered. This includes any current life insurance.

DISCLAIMER:

This calculator includes content that Genworth Financial did not write or compile. Any assumptions or opinions expressed or embodied in this item are solely those of the creator of the calculator. We do not guarantee how accurate or complete it is. The author did not create this calculator to provide investment, legal, or tax advice and we are not furnishing it to you for any such purpose; you may not use it to avoid any IRS penalty. You should ask your independent tax and legal advisors for advice based on your particular circumstances.

If this material states or implies that it was prepared or distributed to promote, market or recommend an investment plan or arrangement within the meaning of IRS guidance, or such use may be reasonably expected, then, as required by the IRS, the following also applies:

The tax information in this material was written to support the promotion or marketing of the transaction(s) or matter(s) addressed in this material.

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