Life Insurance Calculator

Immediate expenses may include the total or partial payoff of installment loans, school loans, credit cards and other outstanding debts. You can also ease your worries by planning ahead for unexpected life events and financial expenses such as: medical/hospital expenses not covered by insurance, attorney's fees, probate costs, taxes and burial expenses. A quick "rule of thumb" is to estimate an amount needed for immediate expenses by multiplying your monthly income by five or six months.

1. Immediate Expenses

Begin by listing your after-tax (net) monthly income.

After-tax monthly income $ x months =

2. Mortgage Cancellation

Are you a homeowner? Chances are, you'll want to make sure that your family can keep their home. You may already have a policy for mortgage cancellation, but you should include the mortgage balance here because you will deduct existing life insurance in step 5.

Are you renting your home? You may want to think about providing a rent payment fund for several years. You might also want this amount to be sufficient for your surviving spouse to buy a home in the event of your death.

Remaining mortgage balance or amount needed to purchase home
$ or
Annual Rent $ x years =

3. Survivors' Income

Think about providing a reasonable standard of living for your surviving spouse and family in the event of your death. We suggest you use your annual income multiplied by 5 to 10 years. If you have not taken care of all outstanding debts under the previous two categories, allow for repayment of any that remain in this calculation.

If you are married and both spouses are working, don't overlook the money that may be needed for child care!

Annual income $ x years =

4. Education Fund

Do you plan to help pay for your children's college education? Use any reasonable cost to calculate this expense. Annual costs often range from $7,000 to $25,000.

Annual college cost $ x children x years =

SUBTOTAL

5. The Bottom Line . . .

Next, subtract your present life insurance and other cash assets from the subtotal above. You can also subtract any assets that could be used to either pay off an existing obligation (e.g., sale of an auto to pay off the loan) or provide income (e.g., investments such as stocks, bonds, and any proceeds available from qualified retirement plans).

Present life insurance and other liquid assets $

(No Information Will Be Transmitted During Calculation)

TOTAL LIFE INSURANCE NEEDED

What's Next?

The best thing to do is talk with an ERIE Agent. Your agent can recommend the coverage best suited to your needs and budget.

If you have a printer connected to your computer, you can print this form with your information on it. Just click on the "File" menu in the top-left corner of your browser, and then choose "Print..." Click the "OK" button in the bottom-right of the window. Having this form printed will help you when talking with your agent.

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"Life Calculator" provided by The ERIE