Deciding how much life insurance to get | veterans affairs

INFORMATION YOU’LL NEED TO USE THE LIFE INSURANCE NEEDS CALCULATOR You’ll need information about the items listed in the 4 categories below. If you don’t know the exact dollar amounts for

all these items, you can estimate. CATEGORY 1: YOUR SURVIVORS’ FINANCIAL OBLIGATIONS These include expenses your survivors may need to pay right away, such as: * Burial and funeral costs *

Health care costs (uninsured medical costs) * Estate taxes * Other estate-settlement expenses like legal fees Financial obligations also include any money you and your survivors may owe

(existing debts) or may need for planned living expenses, such as: * Housing costs (your monthly mortgage or rent payments) * Education costs (like children’s college tuition) * Car, home

equity, or personal loans * Credit card debt * An emergency fund for unexpected expenses CATEGORY 2: THE ANNUAL INCOME AVAILABLE TO YOUR SURVIVORS This includes any money your survivors will

earn or receive each year from: * A job * VA dependency and indemnity compensation (DIC), sometimes called death pension benefits * Social Security survivor benefits * A survivor benefit

plan * Dividends and interest * Other sources (like rental properties, private loan payments from others, or annuities) CATEGORY 3: THE ANNUAL INCOME YOUR SURVIVORS NEED This is how much

money your survivors will need each year to continue supporting the standard of living you want them to have. Standard of living means level of wealth and comfort. It includes basic needs

(like food and housing) and luxuries (like vacations or certain clothes or cars). The calculator will ask you: * How much money your survivors will need each year, AND * For how many years

they’ll need this income CATEGORY 4: YOUR SURVIVORS’ ASSETS These are any items of value that may give your survivors a one-time (or lump sum) payment. If you have debts, your survivors may

need to use these assets to pay off those debts. Assets may include: HOW THE CALCULATOR WILL ESTIMATE YOUR LIFE INSURANCE NEEDS The calculator will use the amounts you enter for each item to

determine: * THE NET INCOME NEEDED TO SUPPORT YOUR SURVIVORS. This is the annual income your survivors need minus the annual income available to your survivors. * HOW MUCH LIFE INSURANCE

YOU MAY NEED. This is your survivors’ total financial obligations and net income needs minus their assets. Go to the life insurance needs calculator NOTE: Please use this calculator only as

a guide. If you need more specific guidance about your situation, contact a financial planner. Find out if you can get free financial planning services