…your spouse and family may be A-Okay owed to the extensive planning you have done with your Life Planner. But what about your grown children? How would their spouses and children hold up financially? Do you know?

The first and foremost reason any of us buy life insurance is because we love our families and want to provide for them. Yet everyone’s needs are different. Obviously, the ideal way to calculate life insurance needs and which type of life insurance best suits your needs is to have your Life Planner complete a thorough analysis with you. Many families purchase coverage without going through this process and end up with inadequate coverage or with life insurance products not entirely appropriate to their needs.

Believe me; I understand how reluctant adult children are to accept any advice we have to offer, particularly when it comes to planning their future. So we have a composed a worksheet you can leave with them that may help put them in the right ballpark regarding how much coverage to anticipate. Keep in mind this will only provide them an estimate – and that it will probably raise more questions for them. Be sure to encourage them to consult with a Life Planner for a more precise number and to help determine what type of insurance vehicle to use.

Immediate & Intermediate Expenses

1. Final Expenses                                                                               ______________
The average cost of a funeral today is $6,000 to $10,000.

2.      Debt                                                                                           ______________
Mortgage, credit cards, car loans, etc.

3.      Education                                                                                   ______________
Expected cost to send your children to school. Not sure? Visit www.collegeboard.com. Keep in mind public college expenses have risen by an average rate of 6.9% annually.

4.      Total Expenses
Add lines 1,2 and 3 ______________

Income Needs

5.      Total Annual Income Needed by Your Family                                ______________
This number usually ranges between 60-100% of your gross annual household income.

6.      Available Income                                                                            ______________
Spouse’s income, rental income, Social Security, etc.

7.      Annual Income Needed                                                                 ______________
Subtract line 6 from line 5.

8.      Capital Need for Income
Income needed for _____ years; Factor_____
Multiply line 7 by factor in Chart 1 below. ______________

Total Capital Need

9.      Add lines 4 and 8. ______________

Capital Available

10.  Savings and Investments                                                                   ______________

11.  Retirement Savings                                                                             ______________
Will these be accessible without penalty? If not, write 0.

12.  Current Life Insurance                                                                       ______________

13.  Total Capital Available
Add lines 10, 11, and 12. ______________

14.  Additional Life Insurance Needed
Subtract line 12 from line 9. ______________

Securities & Advisory Services offered through VSR Financial Services, Inc., a Registered Investment Adviser and Member FINRA/SIPC. Kennedy Financial Services is independent of VSR Financial Services, Inc. VSR does not provide tax or legal advice.