2022 AFBA Financial Planning Guide

13-14. INSURANCE WORKSHEET: NEEDS APPROACH

STEP 1

Income for My Family When I Die

STEP 2

Expenses of My Family When I Die

Executor’s Fund (Count on $5,000)..............$______________ Home Mortgage Payoff (1st Mortgage)......$______________ Home Mortgage Payoff (2nd Mortgage).....$______________ Funeral Expenses (Count on $10,000).........$______________ Emergency Expenses (Count on $5,000).....$______________ Auto Loans to be Paid Off.............................$______________ Other Loans to be Paid Off (Explain) For: ____________________________________$______________ For: ____________________________________$______________ For:____________________________________$______________ For:____________________________________$______________ Other Expenses (Explain) For: ____________________________________$______________ For: ____________________________________$______________ For:____________________________________$______________

Military Death Grat uity Pay. ..........................$______________ Back Pay and Allowances.............................$______________ VA Death Benefit Payment ............................$______________ Social Security Death Benefit ........................$ _ ____________ Proceeds of SGLI/VGLI Insurance................$______________ Proceeds of Other Insurance (List Below) Policy No. ______________________________$______________ Policy No. ______________________________$______________ Policy No._ _____________________________$______________ Policy No._ _____________________________$______________ Other Sources of Income (Explain) From: __________________________________$______________ From: __________________________________$______________ From: __________________________________$______________ From: __________________________________$______________

Total Income Available to Survivors ........... $ ______________

Total Expenses Upon My Death . ................. $ ______________

STEP 3

Reconciliation of Family’s Immediate Income Versus Immediate Expenses

STEP 3

If “Income minus Expenses” computation indicates that your family’s income is enough to cover the immediate expenses they will face, your first concern about their financial security is satisfied. But remember that this only covers their immediate expenses, it does not provide for a continued source of income for their day-to-day, month-to-month living expenses. This will be the next greatest concern you will face. On the other hand, if the computation shows that your survivors will not have enough immediate cash available to cover their expenses, you will need to take immediate actions to insure their financial security. Other than to increase the amount of your life insurance, there are very few actions you can take to provide a source of immediate funds, unless you have a “bundle” of money sitting idly by for investment purposes.

Total Income Available to Survivors (from Step 1 above) ...................................$______________ LESS: Total Expenses Upon My Death (from Step 2 above) ...................................$______________ Excess Income Available or Shortage (if there is a shortage, show the amount in brackets) ...........................$______________

STEP 4

Information on Family’s Insurance Policies Already In Force

STEP 4

Policy Number

Type Insurance

Name of Insurance Company

Beneficiary

Face Value

CHAPTER 13: LIFE INSURANCE

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