At this point you can subtract any savings and 70% of qualified retirement funds (unfortunately we have to be mindful of taxes). Additionally you can subtract any current, personally owned*,life insurance that will be inforce for a useful period (until an expense expires like college).
* I advise against using employer provided life insurance in this initial calculation, as there is no guarantee that a future employer will be able or willing to provide this benefit.
It is best to think of employer provided life insurance benefits as supplemental. This can be especially helpful if budgetary constraints force you into a less than "fully insured" position.
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Jim Tobin is the owner of Life Insurance Help Desk, a Fairfield County, CT. life insurance agency. You can find him on LinkedIn and Facebook. Over the past 10 years, Jim has used his CFP-financial planning designation to help individuals with their life insurance needs. In addition to working with life insurance clients, Jim teaches ESL classes in his spare time. He resides with his beautiful wife Nicole and the 3 cats that rule their lives..
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