Tom is a 35 year old married man, with 2 children. He earns $50,000 a year after taxes, and has a home with a $350,000 mortgage. He also has a $20,000 car loan and $10,000 worth of credit card debt. Based on the formula described, here is how we would figure out how much life insurance he needs
| Assets | Liabilities | |
| Savings | $15,000 | |
| Investment Account | $95,000 | |
| Existing Life Insurance | $100,000 | |
| Income Replacement (X10) | $500,000 | |
| Mortgage | $350,000 | |
| Car Loan | $20,000 | |
| Credit Card Debt | $10,000 | |
| Funeral Expenses | $15,000 | |
| Children’s Education (X2) | $100,000 | |
| Total | $210,000 | $995,000 |
In total, Tom would require an additional $785,000 to protect his family in the event that he was to pass away.