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Life Insurance

Life Insurance

5 Star Life Insurance Company

5Star Life Insurance Company

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AFBA Life Insurance Calculator
Final Expenses (Funeral costs)

Enter the your estimated final expenses in this field.
It should include funeral cost and any additional related costs. 		$
Emergency Fund (Taxes, Travel, Moving, etc.)

Enter your family's emergency expenses upon your death. This may include emergency room expenses, moving fees, taxes, family travel, etc.		 $
Personal Expenses (Auto, Boat Loans, Credit Card Balances)

Enter personal outstanding expenses that will need to be paid upon your death.		 $
Mortgage Principal (Mortgage(s) Amount to Pay Off)

If you have one or more mortgages to pay off upon your death, enter the total amount of the mortgage principal.		 $
Future Education (College fund for your children)

(Estimate $10,000 in State, $25,000 Private per year)
If you are supporting someone in college or planning to attend and you are saving for that expense, enter the estimated amount left to pay.		 $
Annual Income Loss

(Estimated amount of income lost annually: 1/2 of current income)
Use this field to enter the amount of income that will be lost upon your death. This may not be equal to your current salary because some of your expenses will be eliminated as a result of your death. Also, the death benefit from a life insurance policy will cover some of the expenses.		 $
Number of Years of Income Loss

Enter the number of years that you believe your benefactors will be impacted by the lost of your income.		     years
Income Replacement
(Annual Military Benefits, Social Security, etc.)

Enter the average annual amount of replacement income that will be generated based on your death.  This should include the continuation of military benefits, start of social security benefits, pension plans, and existing life insurance.   Esitmate the average annual income from all sources.		 $
Estimated number of years survivor will receive benefits

Enter the number of years the average income will be received by your survivor.  Since amounts and years differ, total all the benefits and divide by the benefit which will last the longest. 

Example: Insurance death benefit $200,000 (lump sum) one year + social security ($20,000 per year for 15 years = $300,000.  $500,000 divided by 15 years = $33,333 per year.		     years
Current Insurance Benefits (Value of Current Policies)

Enter the current death benefit value of your existing insurance policy(ies).		 $
 

Your Results

  

Total Coverage Required

Amount Uninsured

Amount Over Insured

$

$

$

The following total would cover all expense items you entered.

This field will display the amount you are under insured.  The total expenses will be subtracted from the current insurance death benefit and the Income Replacement value.  If the result is a negative number, it will be shown here.

This field will show the amount over insured. Again, the total expenses will be subtracted from the current death benefit of existing policies and and the Income Replacement. If the result is a positive number, the result will be shown here.



This illustration can show an amount in the Amount Over Insured even if the Total Coverage Required is greater than the Current Insurance Benefit. This is because the Income Replacement over the estimated years is greater than the anticipated expenses.

AFBA does not guarantee future investment performance. In addition, AFBA does not recommend any specific investment allocations. Prior to any investment, you may want to consult with your professional advisers such as your accountant, attorney, or broker.

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