Life Insurance Needs

* Click here to download the Life Insurance Needs Worksheet.

The Life Insurance Needs Application allows you to transition your clients from a Human Capital discussion, to a more traditional asset-based needs analysis. By comparing Capital Needed to Available Capital, you will be able to visually display the total life insurance requirement for your clients. This application becomes even more powerful when used in combination with the Risk Management Analysis document within Full Report. From here, a transition into insurance company illustration software will allow you to demonstrate cost and implementation.

Start by entering the Lump Sum Needs, Monthly Income Needs and existing Life Insurance into Application Data Entry.

*To save time, you can choose to Import Application Data Entry by clicking the button. This will import applicable Application data fields from the main Data Entry of the client file.

Once all data has been entered, click the button and the Application will compare the Capital Needed to Available Capital. There are two tabs included; Capital Needed and Summary.

• Capital Needed – Compares Capital Needed to Available Capital. The difference between these two values will be displayed as Capital Shortfall.
• Summary – An outline of the values entered and the Additional Life Insurance Needed.

Lump Sum Needs

Enter all lump sum needs in the event of death. This includes outstanding debts and other expenses.

Monthly Income Needs

• Lifestyle Income – Enter the monthly income required to maintain the lifestyle for the surviving spouse in the event of death. The number of years this income will continue is defined by the Number of Years field.

• Child Dependency Income – Enter the monthly income required to maintain the lifestyle for any surviving dependant in the event of death. The number of years this income will continue is defined by the Number of Years field.

• Investment Rate of Return – Enter the rate of return on investment assets. This value will impact the Additional Capital Required, the higher the return, the fewer assets required.

• Rate of Inflation – Enter the indexing factor to apply to the Lifestyle Income and Child Dependency Income amount each year.

Insurance

Enter existing Creditor, Group and Individual Life insurance, as well as any Liquid Investments that will be available on death.

Summary

This area will calculate the Additional Life Insurance Needed by comparing the Capital Available at Death to the Capital Needed.