Using the Budget Calculator determine how much money your family will need per month to
maintain its current standard of living. Adjust this number up or down to account for things such as
in your absence, additional child care expenses in your absence, health care coverage
that will disappear should you die, etc.
Funeral and other expenses run between
$4,000 and $10,000.
Estate administration expenses
Your spouse will be
charged perhaps 5% of your family's asset value to handle the estate. Use the Net Worth Calculator to determine your asset
value (not the net worth - the asset value).
Multiply by 5% to determine administration expenses.
Your spouse may have to pay capital gains and other taxes. You will want to see an estate lawyer to
minimise this expense, but account for it here.
Mortgage and other loan payouts
It would make life much easier
for your family if all loans were paid out.
If you plan to send your children
to private schools or university enter an amount to cover these costs. Be sure to multiply by the number of children.
Enter any other expenses you may wish to cover,
such as emergencies, cars for the kids, etc., in today's dollars.
Enter your spouse's annual income after taxes. You may
want your spouse to be able to stop working in the event of your death, and
if that is the case enter zero here.
Social Security Income
Enter the amount of money your spouse
will receive from Social Security. If you have children
and want to enter a
rough but fairly accurate number use $20,000. If you do not have children enter
Enter the total annual income your spouse
will receive from any other sources.
Years of social security
Enter the number of years until
your youngest child reaches age 18. If you have no children enter 0 here.
Enter your spouse's age.
Existing Life Insurance
Enter the value of any existing life
insurance policies you have.
TOTAL LIFE INSURANCE NEEDED