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Determining how much coverage you need isn't a complex art – it's simple science. Consider this set of core financial commitments to understand the ongoing financial needs of your family. Then use the Needs Assessment Calculator to determine how much coverage you may need.

Adding up your debts

For many of us, debt is one of the largest financial burdens we carry. Below are the common categories of debt. Consider these and any others you have in your debt total.

Mortgages, home equity loans, and lines of credit
Car, boat, RV, motorcycle, or any other vehicle loans
Personal or spouse student loans, and any loans for your children's education
Credit cards or personal loans
Legal settlements or tax liens
Debt from a small or side business
Any other debt within your financial responsibility

Debt information will go in box 3 of the Needs Assessment Calculator.

Calculating expenses

Consider your household budget and all it includes. Take a look at the common recurring expenses listed below.

Weekly:
Groceries, pet food, drugstore purchases, dry cleaning
Gas, transit fares, tolls

Monthly:
Household bills: cable, phone, electric, heating, daycare, etc.
Prescriptions, medical expenses, nursing home payments for an elderly parent
Housing association fees, groundskeeping costs

Other recurring expenses:
Property taxes
Tuition not covered by student loans

These expenses, plus any additional costs, equal part of the additional income you will need to replace. These will be added in box 1 of the Needs Assessment Calculator.

Other considerations

There are many one-time, emergency, and future expenses that should be accounted for as well. Use this list to consider a value for these situations.

Funeral costs
Medical bills
Estate fees and inheritance taxes

Future events
Wedding, religious ceremonies, college tuition
Home maintenance, roof, heating system
Replacement vehicle
Retirement costs

Enter this information in box 5 of the Needs Assessment Calculator .