Planit:Life Insurance and Disability Calculator

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We suggest you view the e-learning modules:

The Life Insurance and the Disability Calculators both help you to determine the total amount of life insurance that the client will require in the event of death or disability. The Life Insurance Calculator illustrates the Total Capital Required to beneficiaries. The calculator takes into account the client’s age, percentage of earned income that will need to be replaced, current insurance coverage, and lump sum benefits. The Disability Insurance Calculator illustrates the Total Capital Required compared to the client in the event that he or she become disabled and are unable to work. The calculator takes into account client’s age, percentage of earned income that will need to be replaced and the current insurance coverage.

Scenario: Choose the scenario either clients death/disability or spouse’s death/disability.

Current Age: The age at which the scenario occurs. By default this is the current age.

Current Earned Income: The current total income of the client or spouse. By default, that is Salary, Other Taxable, and Non-taxable income from the Cash Flow screen.

Percentage Salary to Replace: The percentage of income needing replacement. This is taken from the Planning Defaults table.

Inflation: The factor representing the inflationary index. The inflation rate from the Client Information Personal screen will be used.

Keep in mind that the compounding effect of inflation will have a significant impact on the revenue stream that the insurance needs to generate over a large number of years.

After Tax Rate of Return: The estimated return on investments after taxes are paid.

Current Insurance Coverage: The amount of insurance currently held in today’s dollars.

Lump Sum Costs: Any cost associated with the scenario in a lump sum, such as burial. This defaults to Assumed Burial Costs from the Planning Defaults.

Lump Sum Benefits: As above, but are the benefits of the scenario. Defaults are taken from the Planning Defaults window.

Other Revenues/Year: Any source of revenue such as survivor benefits on a pension. Defaults are taken from the Survivor Benefits.

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