Life
Events

The projected value of college savings does not take into account federal or state income taxes, or investment fees and expenses, all which may vary depending on the savings vehicle(s) selected. Earnings are compounded monthly. This is a hypothetical example and is not intended to reflect the actual performance of any specific investment, nor is it a guarantee of future value. The projection assumes a fixed annual return; the rate of return on your actual investment portfolio will be different, and will vary according to actual market performance. This is particularly true for long-term investments. It is important to note that investments offering the potential for higher rates of return also involve a higher degree of risk to principal. All investments are subject to market fluctuation, risk, and loss of principal.

College savings, if any, are mapped proportionately against each year of college. Savings not used in a given year continue to earn interest at the rate selected.

The shortfall is the difference between the projected cost of college (adjusted by the percentage of costs you want to fund) and the projected value of college savings.

If there is a shortfall, the calculator determines both the extra monthly savings needed (in addition to any monthly savings currently being made) and the lump-sum amount needed today to eliminate the shortfall. If there is a surplus, this number represents the amount of money you’ll have left over after paying all college costs.

To arrive at an estimate of additional insurance coverage needed, this calculator determines the present value lump-sum amount needed to support your survivors over the number of years indicated at the estimated inflation rate and rate of return. This calculation is based on the estimated monthly living expenses of survivors, less monthly replacement income from other sources. If monthly replacement income from other sources exceeds the estimated monthly living expenses of survivors, the estimated monthly expenses of survivors is not factored into the calculation.

The calculator adds the amount needed to provide ongoing income to survivors to the amount of cash needed for one-time expenses to help determine total cash need. Cash and liquid savings, other liquid assets available to pay off debt, and current life insurance proceeds available are subtracted from total cash need to determine additional life insurance need.

This calculator cannot account for all financial considerations, and should be used only as a general guide. Discuss your life insurance needs with a financial professional.

This illustration assumes a fixed annual rate of return; the rate of return on your actual investment portfolio will be different, and will vary over time, according to actual market performance. This is particularly true for long-term investments. It is important to note that investments offering the potential for higher rates of return also involve a higher degree of risk to principal. All investing involves risk, including the possible loss of principal, and there can be no assurance that any investment strategy will be successful.

The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. There are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely there may be surrender charges and income tax implications.

Additional amounts invested are assumed to be made at the end of each month (for monthly contributions) or year (for annual contributions).

Earnings are compounded monthly.

This calculator does not take into account the effect of federal or state taxes, or any investment fees or expenses.

This is a hypothetical example, intended for illustration purposes only; it does not reflect the performance of any specific investment or portfolio.