TERM LIFE QUESTIONS
1. How much money will my family need after my death to meet immediate expenses, like funeral expenses and debts?
2. How much money will my family need each month to maintain their standard of living over the long run?
3. What capital amount of insurance do I need to buy to generate this income?
LIFE INSURANCE PROCEEDS
Life insurance proceeds can help pay immediate expenses including medical, funeral expenses, final estate settlement costs, taxes and other lump-sum obligations such as debts and the mortgage. They can help to cover current financial obligations like everyday living expenses, savings and retirement funding.
But how do you know if you need $500,000 or $2 million? The most common way to determine your life insurance needs is by conducting what’s called a Capital Needs Analysis.
LIFE INSURANCE CALCULATION EVALUATES YOUR NEEDS
Start by evaluating your family needs. Gather all of your personal financial information and estimate what each of your family members would need to meet current and future financial obligations. The difference between their needs and the resources in place to meet those needs, is the amount of income you'll need to replace.
LIFE INSURANCE CALCULATION
To make it easy for you to get a general sense of your life insurance needs, check out various insurance calculators. They'll walk you through the process and provide you with an estimate of your life insurance needs in a matter of minutes. You need to arrive at a capital amount, which when invested, will replace that missing income.
But remember, our calculator (or anyone else’s for that matter) is no substitute to the guidance and assistance you’ll get by getting life insurance quotes from all the companies this is the way you should buy term life insurance.
About The Author:
Ivon T. Hughes of The Hughes Trustco Group is a licensed Insurance Broker. Author of The Life Insurance Handbook. - Get a FREE Copy TODAY!
Email: info@trustco.ca Web: http://www.hughestrustco.com
