How Much Life Insurance Do You Need?
Settlement Fund
Funeral, medical expenses, legal fess, unpaid taxes, credit accounts &
loans (usually 3 months income)
Housing Fund
Funds to cancel a mortgage, purchase a home, or pay rent for 10 years
Readjustment Fund
Support while decisions and adjustments are made (usually 6-12 months
income)
Emergency Fund
Auto replacement, home repair or interruption of survivors' income by
injury or unemployment (usually 3-6 months income)
Education Fund
University, college or other specialized training for children (usually
$30000/child)
Special Fund
Bequests, charities, infirm child, or dependant relative care, child's
wedding
Total Gross Monthly Income Needs
Food, clothing transportation, utilities, child care, entertainment, tax,
insurance, other expenses (usually 70% of current gross family income)