Your Income Replacement Need
$0
Income Replacement Method
$0
Present value of your future after-tax income (minus self-maintenance) discounted to today
Capitalized Earnings Method
$0
Your annual economic contribution capitalized at the discount rate
Family's Share (After Tax & Self)
$0
๐ Earnings & Income Replacement Over Working Years
What is Income Replacement? Based on the economic value concept developed by Dr. Solomon Huebner, income replacement represents the present value of your future earning potential โ what your family would lose economically if you died prematurely.
Income Replacement Method: IRV = ฮฃ [(Income_t ร (1 - tax) ร (1 - self%)) ร (1 + benefits%) / (1 + discount)^t]
Capitalized Earnings Method: IRV = Annual Economic Contribution / Discount Rate
Key Principle: Your greatest asset isn't your home or your 401(k) โ it's your ability to earn income. Protecting that asset with proper life insurance is the foundation of the Protection domain.