Debts:
Based on your inputs we assume that this life insurance coverage should pay off the debts that you have outlined.
Funeral costs:
The average funeral cost in the US is $8,000 and we assume this amount in your coverage total.
College costs:
We assume the cost of
college at today's cost is $X per year, per child. An inflation rate of 2.25% has been applied in order to project the cost by the time your child is ready for college.
Other future needs:
We assume life insurance could help cover other future expenses (in addition to covering debts, college expenses and funeral costs) and so we calculated other needs at an inflation rate of 2.25% based on your age, income and family status in order to complete your coverage amount.
Life insurance and Savings:
If you answered that you have any savings or existing life insurance, this amount was subtracted from the amount of life insurance coverage you would need to buy.