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tods5eshoes · Wysłany: Pon 10:26, 21 Mar 2011 Temat postu: asic 1870

How Much Life Insurance Do You Need?
Yourlife insurance needs change as your life changes. When you are young, you maynot have a need for life insurance. However, as you take on more responsibilityand your family grows,[link widoczny dla zalogowanych], your life insurance needs increase. Your needs may thendecrease after your children are grown. You should periodically review your needsto ensure that your life insurance coverage adequately reflects your lifesituation. Estimating your life insurance needThereare a couple of simple methods that you can use to estimate your life insuranceneed. These calculations are sometimes referred to as rules of thumb and can beused as a basis for your discussions with your insurance professional. Income ruleThemost b[link widoczny dla zalogowanych] rule of thumb is the income rule, which states that your insuranceneed would be equal to six or eight times your gross annual income. Forexample, a person earning a gross annual income of $60, 000 should have between$360, 000 (6 x $60, 000) and $480, 000 (8 x $60,[link widoczny dla zalogowanych], 000) in life insurance coverage. Income plus expensesThisrule considers your insurance need to be equal to five times your gross annualincome plus the total of any mortgage, personal debt, final expenses, andspecial funding needs (e. g., college). For example, assume that you earn agross annual income of $60, 000 and have expenses that total $160, 000. Yourinsurance need would be equal to $460, 000 ($60, 000 x 5 + $160, 000). Severalmore comprehensive methods are used to calculate life insurance need. Overall,[link widoczny dla zalogowanych], these methods are more detailed than the rules of thumb and provide a morecomplete view of your insurance needs. Family needs approachThefamily needs approach requires you to purchase enough life insurance to allowyour family to meet its various expenses in the event of your death. Under thefamily needs approach, you divide your family's needs into three maincategories: Immediate needs at death (cash needed for funeral and other expenses)
Ongoing needs (income needed to maintain your family's lifestyle)
Special funding needs (college funding, bequests to charity and children, etc. )
Onceyou determine the total amount of your family's needs, you purchase enough lifeinsurance, taking into consideration the interest that the life insuranceproceeds will earn over time, to cover that amount. Income replacement calculationTheincome replacement calculation is based on the theory that the family incomeearners should buy enough life insurance to replace the loss of income due toan untimely death. Under this approach,[link widoczny dla zalogowanych], the amount of life insurance you shouldpurchase is based on the value of the income that you can expect to earn duringyour lifetime, taking into account such factors as inflation and anticipatedsalary increases, as well as the interest that the lump-sum life insuranceproceeds will generate. Estate preservation and liquidity needs approachTheestate preservation and liquidity needs approach attempts to calculate theamount of life insurance needed upon your death to settle your estate. Thisincludes estate taxes, and funeral, legal, and accounting expenses. The purposeis to preserve the value of your estate at the level prior to your death and toprevent an unwanted sale of assets to pay estate taxes. This method takes intoconsideration the amount of life insurance needed to maintain the current valueof your estate for your family, while providing the cash needed to cover deathexpenses and taxes. Written byLife Insurance Quote | Life Insurance Rates: BeamaLife.Topics related articles：

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