University oF Florida Employees

Capital Needs Analysis

Capital needs analysis is a process for measuring financial needs and developing solutions. It will utilize objective and subjective criteria to determine the amount of life insurance someone needs. These needs include immediate cash needs (such as, funeral and other final expenses), intermediate cash needs (such as, debt repayment and emergency fund) and longer-term needs (such as income for the widow and family). Please print and complete the Data Sheet below regarding the circumstances for you and your family. If you need help completing the form, please call us at:

Call us at: The Elan Group: (800) 476-3801

We will be glad to help. Once you have completed the form, print out a copy for your records, then click submit. We will calculate your needs based on the information. Remember to include your telephone number so we can contact you with the results.

Needs Analysis Data Sheet


Date:		Age:
Name:		Telephone:
Address:
City:		State: Zip:
E-mail:		Employer:
Spouse:		Age:
Children:		Ages:



Your Annual Earnings:		Spouse:
Other income:		Source:

Financial Objectives and Assumptions:

Education Fund (According to the Annual Survey of Colleges, The College Board, New York, NY, the 1999-2000 annual cost for public institutions is $8,086 and private institutions is $21,339 and the average annual increases are 3.4% and 4.7%, respectively) $ per month.

Final Expenses (costs associated with the final illness, funeral costs, estate administration, taxes, etc.-generally estimated at 6% of assets) % of assets, or $ per month.

Emergency Fund (Few of us are strangers to the unfortunate types of events that create financial problems. A surviving family's emergency fund provides assurance that such problems do not become crises. Illness or layoff of the surviving spouse, travel related to death or illness, need for a new roof, turbulence in the financial markets, and the list goes on for the need of an emergency fund. Generally, 50% of one's current income is recommended.) % of current income, or $ per month.

Survivor Income

Dependency Period (During this period of time, the surviving spouse has children in his or her care. The surviving family's income needs are greatest during this time. Generally, the presence of minor children will make the surviving family eligible for Social Security benefits; however, a need for additional income will likely remain. It is generally recommended that the income objective be 75% of the family's current income) % of current income, or $ per month.

Preretirement Period (This is also referred to as the "Blackout Period". During this time, the surviving spouse is not eligible for any Social Security benefits and, generally, there are no dependent children. Generally, the income objective during this period is recommended to be 60% of the family total current income.) % of current income, or $ per month.

Retirement Period (This period begins when the surviving spouse quits working and lasts the rest of his or her life. Earned income ceases; however, Social Security benefits may be received. Expenses associated with working stop, but expenses associated with leisure increase. Furthermore, expenses dealing with aging and illness may increase. Overall, however, all these changes tend to offset; therefore, it is generally recommended that the income objective during this period be about 60% of total family income.) % of total family income, or $ per month.

Assumed Rate of Return on Capital (Currently 5%-6% appears reasonable) %

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