How to Estimate Final Expenses – i.e. a recommended amount of life insurance to help pay for hospital and medical expenses, funeral and burial costs, taxes, debts, estate administration fees and costs and death taxes. An appropriate amount of life insurance guarantees that this amount will be paid to the family swiftly, outside of probate and with only minimal administrative requirements. Use the below questionnaire to estimate your final expenses. Bear in mind that Social Security provides a lump sum of only $255; this “benefit” is payable only to an eligible surviving spouse or child.

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HOW TO ESTIMATE FINAL EXPENSES

If a Family wage-earner dies, how much cash will be needed?    

            To cover the costs of health care (not covered by insurance)

            For a last illness:

·         hospital?                                                         $__________

·         doctor?                                                           $__________

·         medicines?                                                      $__________

·         other?                                                             $__________

To cover burial expenses:

·         funeral?                                                           $__________

·         religious services?                                           $__________

·         cemetery lot?                                                  $__________

·         grave marker?                                                $__________

·         funeral luncheon?                                            $__________

·         other?                                                             $__________

To cover personal obligations:

·         mortgage principal?                                         $__________

·         household bills?                                              $__________

·         installment payments?                                     $__________

·         loans?                                                            $__________

·         unpaid pledges and liens?                               $__________

·         other?                                                            $__________

To cover estate administration costs and fees:

·         court fees?                                                      $__________

·         legal fees?                                                       $__________

·         accountant, appraiser and other expert fees?    $__________

·         other?                                                             $__________

To cover taxes:

·         estate taxes?                                                    $__________

·         inheritance taxes?                                             $__________

·         income taxes?                                                  $__________

·         property taxes?                                                $__________

·         other?                                                              $__________

Estimated Total Final Expenses                                     $___________*

* Rule of Thumb: Typically, half of the annual family income should suffice; however, each individual circumstance must be reviewed in some detail.