To accurately estimate the amount of life insurance needed, here are some of the factors that must be considered:
Future expected income of the insured
Expected future spending, including non-routine cost like college
Future social security or pension benefits
Likely costs associated with an individual’s death, including estate taxes and funeral expenses
Lifestyle changes that might be made by the survivors in the event of the death of the insured
• IF YOU’RE THE BREADWINNER IN THE FAMILY.
• Buy in 20’s
Pay a lower premium
Saving Money: Whole Life
• Pay final expenses
• To cover children’s expenses
• Replace the spouse’s income
• Pay off Debts
• To buy a Business Partners Shares
• To pay off estate taxes
• Protection of your life, Protect your finances.
• Provide love ones that depend on your financial aid/guidance while recovering for lose.
• Don’t just buy insurance, buy insurance for what it can do for your family/business.
• 15x avg salary
• It results in a number that should re-create 75% of a wage earners’ income if the death benefit was conservatively invested to earn 5% annually. Example:
• Dave makes $100,00
• $100,00 x 15 = $1,500,000 of death benefit
• $1,500,000 earning 5% annually produces $75,000 of income
If anyone relies on you financially, you need life insurance.
Life Insurance doesn’t simply apply a monetary value to someone’s life.
Life Insurance is a contract (called a policy).
There are four primary players, or roles, in a life insurance policy.
Life Insurance is a risk management tool, not an investment.
There are two broad varieties of life insurance about which you should become aware – term and permanent.
Life insurance can be extremely expensive, but it can also be surprisingly inexpensive.
Determining the optimal life insurance policy for you doesn’t have to be complicated.
Consider using a live person to help in your death planning.
Know your options when canceling an existing life insurance policy so you don’t leave money, or coverage, on the table.
$35,000 / Year Salary
After Taxes: (Federal Taxes, Social Security, Medicare)
$28,356 *you’ll bring home
*Doesn’t include state taxes/ any deductions from your paycheck for workplace benefits, such as medical & dental insurance/ retirement saving plan
$25,350 / Per Year
$2,100 / Per Month
Monthly Expense ($2,100 Income)
30% ($634) Housing
15% ($317) Food
10% ($211) Utilities & Housing Expenditures
10% ($211) Transportaion
10% ($211) Debt Repayment
10% ($211) Saving
5% ($106) Clothing
5% ($106) Entertainment
5% ($106) Insurance & Miscilanious
(41% of the population)
61% of men have some sort of life insurance coverage
57% of women have some sort of life insurance coverage
93% of Americans say that life insurance is something most people need
50% of Americans admit they do not have adequate life insurance coverage
44% of Americans own an individually purchased life insurance policy.
Many experts recommend at least 10 times your gross annual income in coverage