How Much Life Insurance Do I Need? Should My Kids Be Protected ... - Free Printable
Educational worksheet: How Much Life Insurance Do I Need? Should My Kids Be Protected .... Download and print for classroom or home learning activities.
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Step-by-step solution for: How Much Life Insurance Do I Need? Should My Kids Be Protected ...
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Show Answer Key & Explanations
Step-by-step solution for: How Much Life Insurance Do I Need? Should My Kids Be Protected ...
This worksheet helps you figure out how much life insurance you might need — based on what would happen if you died today. It’s not about being scary, it’s about making sure your family is taken care of.
Let’s walk through each part step by step. You’ll fill in numbers for two people (maybe you and a spouse, or just one person if you’re single). We’ll call them Person A and Person B.
---
Step 1: Name
Write the name of each person at the top under “Name:”
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Step 2: L – Loans & Mortgage
Think: What debts would your family have to pay off if you died?
Examples: Car loan, credit card debt, house mortgage.
Write that total amount next to the "$" line under "L".
→ Example: If you owe $50,000 on your car and $200,000 on your house, write $250,000.
Do this for both people.
---
Step 3: I – Income Replacement
How much money does your family need every year to live without your income? Multiply that by how many years they’d need support (like until kids are grown or spouse retires).
→ Example: If your family needs $40,000/year and you want to cover 10 years, write $400,000.
Do this for both people.
---
Step 4: F – Funeral
Funerals cost money. Average is around $7,000–$10,000, but use what you think is right.
→ Write that number under "F".
Do this for both people.
---
Step 5: E – Education
If you have kids, how much will college cost? Maybe $50,000 per child? Add it up.
→ Write that under "E".
Do this for both people.
---
Step 6: U – Unforeseen Expenses
Emergencies happen — medical bills, home repairs, etc. Pick a safe number like $10,000–$20,000.
→ Write that under "U".
Do this for both people.
---
Step 7: Total Needs (Estimated)
Add up all the numbers above for each person:
Total = L + I + F + E + U
→ Write that sum under “Total Needs”.
Do this for both people.
---
Step 8: LESS – Present Insurance & Other Assets
Now subtract what you already have:
- Life insurance policies you own
- Savings, investments, retirement accounts your family could use
→ Write that total under “LESS”.
Do this for both people.
---
Step 9: NEW LIFE INSURANCE (Estimated Present Need)
Subtract Step 8 from Step 7:
New Life Insurance Needed = Total Needs – Present Insurance & Assets
→ This is how much MORE life insurance you should get.
Write that final number at the bottom.
---
✔ Let’s do a quick example for ONE person to make sure we understand:
Person: Alex
- L (Loans & Mortgage): $180,000
- I (Income Replacement): $300,000 ($30k/year × 10 years)
- F (Funeral): $8,000
- E (Education): $60,000 (for 2 kids)
- U (Unforeseen): $12,000
→ Total Needs = 180,000 + 300,000 + 8,000 + 60,000 + 12,000 = $560,000
Alex already has:
- Life insurance: $200,000
- Savings: $50,000
→ Total Assets = $250,000
→ New Life Insurance Needed = 560,000 – 250,000 = $310,000
So Alex should look into getting an extra $310,000 in life insurance.
---
You can now fill out the whole sheet using your own numbers. Remember — there’s no “right” answer, only what makes sense for your situation.
Final Answer:
[The completed worksheet with filled-in values depends on personal financial details. Since no specific numbers were given, the correct approach is to calculate:
New Life Insurance Needed = (Loans + Income Replacement + Funeral + Education + Unforeseen) – (Existing Insurance + Assets)
for each person listed.]
Let’s walk through each part step by step. You’ll fill in numbers for two people (maybe you and a spouse, or just one person if you’re single). We’ll call them Person A and Person B.
---
Step 1: Name
Write the name of each person at the top under “Name:”
---
Step 2: L – Loans & Mortgage
Think: What debts would your family have to pay off if you died?
Examples: Car loan, credit card debt, house mortgage.
Write that total amount next to the "$" line under "L".
→ Example: If you owe $50,000 on your car and $200,000 on your house, write $250,000.
Do this for both people.
---
Step 3: I – Income Replacement
How much money does your family need every year to live without your income? Multiply that by how many years they’d need support (like until kids are grown or spouse retires).
→ Example: If your family needs $40,000/year and you want to cover 10 years, write $400,000.
Do this for both people.
---
Step 4: F – Funeral
Funerals cost money. Average is around $7,000–$10,000, but use what you think is right.
→ Write that number under "F".
Do this for both people.
---
Step 5: E – Education
If you have kids, how much will college cost? Maybe $50,000 per child? Add it up.
→ Write that under "E".
Do this for both people.
---
Step 6: U – Unforeseen Expenses
Emergencies happen — medical bills, home repairs, etc. Pick a safe number like $10,000–$20,000.
→ Write that under "U".
Do this for both people.
---
Step 7: Total Needs (Estimated)
Add up all the numbers above for each person:
Total = L + I + F + E + U
→ Write that sum under “Total Needs”.
Do this for both people.
---
Step 8: LESS – Present Insurance & Other Assets
Now subtract what you already have:
- Life insurance policies you own
- Savings, investments, retirement accounts your family could use
→ Write that total under “LESS”.
Do this for both people.
---
Step 9: NEW LIFE INSURANCE (Estimated Present Need)
Subtract Step 8 from Step 7:
New Life Insurance Needed = Total Needs – Present Insurance & Assets
→ This is how much MORE life insurance you should get.
Write that final number at the bottom.
---
✔ Let’s do a quick example for ONE person to make sure we understand:
Person: Alex
- L (Loans & Mortgage): $180,000
- I (Income Replacement): $300,000 ($30k/year × 10 years)
- F (Funeral): $8,000
- E (Education): $60,000 (for 2 kids)
- U (Unforeseen): $12,000
→ Total Needs = 180,000 + 300,000 + 8,000 + 60,000 + 12,000 = $560,000
Alex already has:
- Life insurance: $200,000
- Savings: $50,000
→ Total Assets = $250,000
→ New Life Insurance Needed = 560,000 – 250,000 = $310,000
So Alex should look into getting an extra $310,000 in life insurance.
---
You can now fill out the whole sheet using your own numbers. Remember — there’s no “right” answer, only what makes sense for your situation.
Final Answer:
[The completed worksheet with filled-in values depends on personal financial details. Since no specific numbers were given, the correct approach is to calculate:
New Life Insurance Needed = (Loans + Income Replacement + Funeral + Education + Unforeseen) – (Existing Insurance + Assets)
for each person listed.]
Parent Tip: Review the logic above to help your child master the concept of life insurance worksheet.
