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Determining My Life Insurance Needs (page 353) NOTE: Results here may differ slightly than when using Appendix A in text due to rounding. Factors Affecting
| Determining My Life Insurance Needs (page 353) | ||
| NOTE: Results here may differ slightly than when using Appendix A in text due to rounding. | ||
| Factors Affecting Need | Sample Only | Insert Your Own Figures |
| 1. Income-replacement needs* | $823,219 | |
| 2. Final-expense needs | $ 12,000 | |
| 3. Readjustment-period needs | $ 19,000 | |
| 4. Debt-repayment needs | $ 10,000 | |
| 5. College-expense needs | $ 75,000 | |
| 6. Other special needs | $ - | |
| 7. Subtotal (combined effects of items 16) | $ 939,219 | |
| 8. Government benefits** | $390,370 | |
| 9. Investment Assets Available | $0 | |
| 10. Current Life Insurance In Place | $ 98,000 | |
| 11. Life insurance needed | $ 450,848 | |
| *Income Replacement Needs Calculator | ||
| Current Annual Income | $56,000 | |
| Percent of Annual Income To Be Replaced | 75% | |
| Annuity Amount (% desired of annual income) | $42,000 | |
| i (assumed interest rate | 3.00% | |
| n (number of annuity payments) | 30 | |
| PV (present value) of Income Replacement Needs | $823,219 | |
| **Present Value of Social Security Benefits Calculator | ||
| Estmated Monthly Benefit (See Appendix B in Text) | $2,725.00 | |
| Estimated Annual Benefit | $32,700 | |
| i (assumed interest rate | 3.00% | |
| n (number of annuity payments) | 15 | |
| PV (present value) of Government Benefits | $390,370 | |
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Bond Markets Analysis and Strategies
Authors: Frank J.Fabozzi
9th edition
133796779, 978-0133796773
