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Insurance Needs Analysis

This tool can help you calculate how much life insurance you need. For a personalized calculation of your insurance needs, please contact your Farm Credit Services representative.

Steps:

  • Annual Living Expenses: protects the surviving spouse and maintains the family's current lifestyle. Recommended insurance amount is five times the family's annual living expenses.
  • Loan Protection: Reduces or pays off debt. This prevents debt from decreasing your life insurance that is intended to cover living expenses.
  • Dependent Coverage: Recommended insurance amount for each dependent's college education.  It can either be one times the annual household salary or for public tuition ($10,000 per year) or private tuition ($20,000 per year).
  Customer TOTAL
1. ANNUAL LIVING EXPENSES $    

Multiply by 5

 X 5 $ 
2. LOAN PROTECTION
List Outstanding Debt
Home $   
Auto(s) $   
Operating Loan(s) $   
Long Term Loan(s) $   
Credit Card Debt $   
Other $   
$ 
3. DEPENDENT COVERAGE/COLLEGE FUND
Cost of College Per Child Enter Estimated Annual Cost X Number of Years $    

Number of Children to Educate

 X   $ 
4. TOTAL INSURANCE IN FORCE

Current Life Insurance

   $ 

Note: This Current Life Insurance Amount will be subtracted to determine need...

    
5. TOTAL LIFE INSURANCE RECOMMENDED   $ 
6. Option: Consideration for Liquid Assets

Assets Not Intended for a Specific Purpose or Expendable NonLiquid Assets

   $ 
7. Optional Life Insurance Amount Considering Liquidated Assets

Total Life Insurance Recommended (Item 5) Less Liquid Assets (Item 6)

   $