Helpful Hints
| Assets & Assumptions | |
| 20. | Existing Life Insurance. Enter only the total of your group and individual life insurance that is payable to your survivors, reduced by the amount of any policy loans. |
| 21. | Savings and Investments. Enter the market value of bank accounts, money market accounts, CDs, stocks, bonds, mutual funds, rental property, and other real estate (excluding your residence). |
| 22. | Additional Savings Needed. Enter additional retirement or other savings you wish to have at the end of the life insurance “needs” period. In retirement, most people will require about 60% to 80% of their pre-retirement income. Of this, some portion will come from Social Security. |
| 23. | Total Current Assets. This is the sum of Items 20 and 21. |
| Financial Assumptions | |
| 24. | Inflation Rate. A 3.0% inflation rate has been incorporated in the calculation. Override this pre-populated entry if you have information that will produce a more personalized analysis. |
| 25. | Investment Yield. A 6.0% yield on investments has been incorporated in the calculation. Override this pre-populated entry if you have information that will produce a more personalized analysis. A reasonable long-term range for an investment yield is 4% to 8%. |
| 26. | Lost Income Potential. This allows for lost income due to (a) “normal” year-over-year increases in earned income, as well as (b) annual income increases as you climb the corporate ladder or otherwise achieve financial success.An average annual income increase of 3.2% is built into CALC. It is based on the 10-year average increase ending in 2010, as reported in a Hewitt Associates survey of increases for exempt employees, 2001—2013. Override this pre-populated entry if you have information that will produce a more personalized analysis. |