Professional Analysis for Creating Your Family's Financial Shelter
Professional Disclaimer: These calculations provide general guidance only. Consult with a licensed insurance professional and financial advisor for personalized recommendations. View Full Legal Disclaimer
Life Insurance Needs Analysis Methods
Income Replacement Method
Calculate coverage based on replacing lost income for dependents
Rule of Thumb: 8-12x annual income
Financial Needs Analysis
Comprehensive analysis of all financial obligations and goals
Most Accurate: Considers all specific needs
Estate Liquidity Analysis
Coverage to pay estate taxes and avoid forced asset sales
High Net Worth: Essential for large estates
Comprehensive Needs Calculator
Personal Information
Financial Obligations
Existing Resources
Advanced Options
Life Insurance Needs Analysis Results
Financial Needs Summary
Income Replacement Need (PV):$0
Debt Obligations:$0
Final & Education Expenses:$0
Total Financial Need:$0
Available Resources
Current Assets:$0
Existing Insurance:$0
Social Security (PV):$0
Total Available Resources:$0
Coverage Recommendation
Additional Coverage Needed:$0
Income Multiple:0x
Policy Type Analysis
Term Life Insurance
✓ Advantages
Lowest initial cost
Highest coverage per premium dollar
Simple to understand
Ideal for temporary needs
✗ Disadvantages
Premiums increase with age
No cash value accumulation
Coverage may expire
Insurability may change
Permanent Life Insurance
✓ Advantages
Lifelong coverage
Cash value accumulation
Level premiums
Tax-advantaged growth
✗ Disadvantages
Higher initial cost
Complex products
Lower coverage per dollar
Surrender charges
Estate Planning Integration
Irrevocable Life Insurance Trust (ILIT)
Benefits:
Removes death benefit from taxable estate
Provides liquidity for estate taxes
Protects benefits from beneficiary creditors
Considerations: Requires annual Crummey notices, loss of ownership control
Business Buy-Sell Agreements
Applications:
Fund purchase of deceased partner's interest
Provide liquidity to family
Establish valuation for estate tax purposes
Key Issue: Valuation methodology and periodic updates
Charitable Strategies
Options:
Charity as beneficiary for tax deduction
Wealth replacement for donated assets
Split-dollar arrangements
Benefit: Achieve charitable goals while preserving family wealth
Important Implementation Considerations
Medical Underwriting: Apply while healthy - health changes can affect insurability and premiums.
Review Regularly: Life changes (marriage, children, income changes) require coverage updates.
Professional Guidance: Work with licensed insurance professionals and estate planning attorneys for implementation.