This calculator will help you to determine your total life insurance needs. The main objective is to calculate the amount that your family would need to maintain its current standard of living in your absence. You should repeat this calculation whenever your life changes significantly.
Enter the likely values for Expenses and Income.
Leave the box set at 0 if a particular question is not relevant to your situation.
Click once on the "Calculate" button to calculate your result.
If the Total Life Insurance figure is negative, then you do not need additional insurance. Otherwise, you should purchase the amount of insurance indicated.
It is assumed that all life insurance benefits will be invested in low-risk investments if you die and that rates of return, after taking taxes and inflation into account, will be zero.
Your current assets such as superannuation, home equity, etc. are not considered in order to simplify the calculation. You should seek advice from a Financial Adviser if you have significant assets.
It is assumed that your spouse has no additional superannuation, will retire at age 65 and will live to age 95. During retirement, your spouse's living expenses are assumed to be 80% of the expenses entered in the Living Expenses field.
"Spouse's income" and "Other income" are assumed to end at age 65.
The information provided by these calculators is for illustrative purposes only. The information entered may vary from your actual loan, mortgage, investment, or savings results. Interest rates are hypothetical and are not meant to represent any specific investment. Rates of return will vary over time, particularly for long-term investments. The calculated results are not guaranteed to be accurate and are in no way endorsed, offered or guaranteed by Mercantile Bank.