Instructions for The TALK

NOTE: Fields in GOLD are automatically calculated and cannot be altered.

  • Current age: Age of person for the insurance quote.
  • Gender: Gender at birth
  • U.S.A. life expectancy: You cannot change this field. Data is valid as of 2024.
  • Your life expectancy (optional): If you expect to exceed the U.S. life expectancy, enter that age here. You can enter any value that is at least equal to or greater than Current age.
  • Burial: This is the current national average burial cost. You can change this to a value that is appropriate for your local area.
  • Cremation: This is the current national average cremation cost. You can change this to a value that is appropriate for your area.

CURRENT VALUE OF MY ASSETS: Estimate the current market value of your assets.

  • Total Assets: This a calculated field that totals all the asset values listed.
  • Liabilities: This is a calculated field that totals all the outstanding loans listed.
  • Equity: This is the difference between the total value of your assets less the total loans on those assets.

ASSET SALE OR INSURANCE PAYOFF

Select the appropriate checkbox for each asset. You are deciding whether the asset will be sold upon your death or whether any outstanding loans will be paid off.

  • Do you want to SELL or PAY OFF an asset?: For each asset, decide if you expect the asset to be sold at death OR any outstanding loan to be paid off at death. If the asset is sold, the program will multiply the outstanding loan asset value by the appropriate sales expense. For instance, if the home’s value is listed as $400,000 and the EXPENSE LEGEND indicates a 20% home sale expense, then $80,000 ($400,000 X 20%) is added for insurance coverage.
  • Joint loans with partner: This field refers to outstanding loans in the names of both partners or spouses. For example, credit card debt in which each partner is jointly and severally liable would be an example of debt that should be paid off at the death of either partner. If you prefer not to pay off this debt, then enter $0 in the field: Joint loans with partner.
  • Total Value of Assets to SELL: This a calculated field that totals all the assets values to be sold.
  • Total Expenses to Sell Assets: This a calculated field that totals the sales costs of all assets to be sold.
  • Total Value of Assets to PAY OFF: This a calculated field that totals all the asset values listed.

EXPENSES OF SALE

  • Home sale expense: This is an estimate of the cost to sell your home as a percentage of the home’s current value. For example: a home valued at $400,000 with a 20% home sales expense percentage would result in $80,000 in expected expenses to sell the home. Expenses might include real estate broker fees, pre-sale home repairs, and costs to maintain the home until sold, such as mortgage, lawn care, and utility costs. This field is not used if there is no home to be sold at death.
  • Business assets sales expense: This is an estimate of the cost to sell a business assets as a percentage of the value of the business asset. This field assumes that the depreciating capital assets of the business have to be sold to pay off the business loan. However, it can also be true that the actual value of the business can far exceed the value of an existing loan. This field is not used if there are no business assets to be sold at death.
  • Car sale expense: This is an estimate of the cost to sell the car as a percentage of the car’s current value. This field is not used if there is no car to be sold at death.
  • Other sales expenses: This is an estimate of the cost to sell other items as a percentage of the other items’ current value. Other items might include a 2nd home, a boat, a coin collection, expensive art. The percentage should be increased based on your estimation of the complexity of the sale of these other items. For instance, fees to sell a 2nd home might approximate closer to 20% or more, rather than 10%. This field is not used if there are no other items to be sold at death.XP

MISCELLANEOUS

  • Choose burial or cremation: If you choose burial, then the burial cost from the National Funeral Expense section will be added as insurance coverage. Similarly, if you choose cremation, then the cremation cost is added for insurance coverage.
  • Estimated monthly cost to support one child: This is your best estimate of the cost to provide for one child for one month. The same cost factor will then be applied for each child listed in the Children section.
  • Protect child(ren) until age: In most states, parents or legal guardians are required to provide for children until the age of 18. However, you may want to provide support for more or less years. Children can also include grandchildren that you might want to protect until a certain age.
  • Current annual income: Include total current annual income from one source or all sources.
  • Partner support years: Upon death of a partner (or spouse), the partner’s annual income is lost to the household. This field allows you to decide whether or not to replace that income and for how long. For instance, if the current annual income is $40,000 and you enter Partner support years of 2, then $80,000 ($40,000 X 2) will be added for insurance coverage. This amount is added in the EXTRAS section.

CHILDREN

  • Child’s Name & Age: A child’s name and age must be entered in the appropriate fields in order for Total Coverage Years and Total for Child Support to calculate. 
  • Total Child Support: This total is the Estimated monthly cost to support one child x all listed children x 12 (annual) x Total Coverage Years.

EXTRAS, INSURANCE POLICY AMOUNT, NET WORTH

  • EXTRAS: These are any extras that you want added to your life insurance coverage.
  • INSURANCE POLICY AMOUNT: This is a suggested amount based your inputs. Deciding which type of policy or policies will fulfill your needs is the job of a licensed insurance professional. Our services are FREE to you. You are invited to book a FREE consultation.

Net Worth – A life insurance policy instantly increases your net worth. The value of your estate is increased by the face amount of the policy.

  • Net Worth Before Insurance: Total Assets minus Total Liabilities. This equals Equity.
  • Net Worth After Insurance: Total Assets minus Total Liabilities plus Insurance Policy Amount. This equals Equity plus Insurance Policy Amount.

DISCLAIMER FOR USE