Life Insurance Needs Calculations

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Life Insurance Needs Calculations
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• Lot of people decides
  they should purchase life insurance to make sure
  their family has money in case they pass away.
  Like the sign says in the old insurance agent's
  office, no widow ever complained that she had too
  much life insurance! Of course, in these days of
  two incomes, both moms and dads are making sure
  they are covered. But as the family breadwinners
  are looking into buying policies, just how much
  coverage should they purchase?

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• What do you need to cover?
• A home mortgage is a starting place for many
  people. How much money do you still owe on your
  home, and how far would your spouses income go
  towards making payments. Many breadwinners want
  to make sure their family can stay in their home
  if they lose one income. In fact, a home mortgage
  is one of the primary reasons that people start
  looking into buying life insurance. Even if the
  decision makers in a family decide that the home
  must be sold if one income earner passes away, it
  is still important to give the other decision
  maker time to keep the mortgage payments current
  for several months so the home can be sold for a
  good price, and not in a panic.
• Other debts and obligations are also considered.
  Do you still have car or credit card payments? Do
  your kids go to a private school or need special
  services? If one breadwinner passed away, could
  the rest of the family continue with their
  current life style. What things are the most
  important to continue?

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• Of course, normal bills like food and utilities
  need to be added in. How much does it cost just
  to keep the electricity and phones turned on?
• What about the future? Do you plan to help your
  children go to college, or would one spouse need
  more education to help replace the salary of the
  covered spouse?
• What other services would you need if one spouse
  passed away? If you need to eat out more, or
  provide for paid childcare, consider that too.
  Sometimes one spouse does not earn income, but
  provides services that would cost the family a
  lot of money.

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• Of course, the idea here is not to make money or
  get rich from life insurance. We are just trying
  to replace the income and services that a
  breadwinner or service provider gives to the
  family. Even if it is not reasonable to expect
  life insurance to replace the income of the
  covered person, it is reasonable to expect it to
  provide enough coverage to be able to transition
  to another lifestyle in as painless a way as
  possible. If you consider your life insurance
  needs, you will be able to find an affordable
  policy With Life Insurance Calculator that can
  provide security for your family.
• Source http//ezinearticles.com/?Life-Insurance-
  Needs-Calculationsid1728887

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