Total Insurance Need (Capital Need)
$0
Needs & Resources Breakdown
PV of Needs — by Category
Needs vs. Resources vs. Gap
Spouse — Capital Need
In joint mode, the calculator assumes a mirror analysis where the spouse's death triggers the same need structure. Both should typically be insured.
Methodology — Capital Needs Analysis (CNA):
Insurance Need = (PV of Needs) − (Existing Assets + Existing Insurance)
Immediate Cash Needs — funeral, mortgage payoff, other debts, emergency fund (months × monthly expense). Stated in today's dollars (no discounting).
Income Replacement — Present value of annuity: PV = PMT × [1 − (1+r)−n] / r at real discount rate r.
Education Funding — Per child: today's cost inflated by education-inflation to college year, summed over years of school, then discounted back to today at the real discount rate. Multiplied by # of children.
Survivor Income (offset) — Spouse salary + Social Security survivor benefit treated as an annuity offset, PV'd at the same discount rate.
Retirement Asset Tax Drag — Pre-tax retirement balances optionally reduced by 20%–30% to reflect income tax on distributions.
Capital Needs Analysis prepared by Nate Cocco, ChFC · Series 65/7/6, in accordance with CFP Board Standards of Conduct. This analysis assumes constant inflation and discount rates; reasonable assumptions should be reviewed annually. Results are estimates only and do not constitute a specific product recommendation. Actual insurance needs may differ based on changes in income, family status, health, tax law, market conditions, and product features.
Acknowledgement & Signatures
By signing below, the client acknowledges receipt of this Capital Needs Analysis and that the assumptions herein were reviewed and approved.
Nate Cocco, ChFC — Advisor / Date