How Do I Calculate How Much Life Insurance I Need?
Life insurance protects you and your family from economic hardship as a result of death. It is an insurance company's obligation to pay the recipient of your choice a pre-determined amount of money when you die in exchange for timely payment of premiums while you are living.
Do you really need life insurance? Well do you want to provide for your family and loved ones in a manner to which they have become accustomed in the untimely event of your death? If you are the primary breadwinner who will pay the mortgage on the house your spouse and children live in if you pass? Who will provide financially for your family if you are gone? How will your children's education be financed in your absence? And finally how will your burial expenses be covered?
Now that you have decided you do indeed need life insurance, how much do you need and if you already have life insurance do you have enough? Some things you will need to consider when making this decision:
How much can your family afford to pay off your mortgage loan or your rent if you die?
How much debt will you leave behind to include credit card balances, car loans, student loans, personal loans etc.?
How much annual income will your death remove from your household?
How much will the funeral you desire cost?
Do you want to leave behind a charity fund in your name?
Do you have special family members you would like to leave a financial gift behind for?
How much will your spouse need to care for a family member with special needs?
How much do you want to leave behind for your children's education expenses?
Once you calculate how much money you want to leave behind consider how much you currently have in terms of individual or group life insurance along with your other assets such as savings accounts, CDs, mutual funds, stocks, bonds, 401K, retirement plans or pension plans and subtract that amount to decide how much life insurance you currently need to purchase.
Timothy Gorman is a successful Webmaster and publisher of Best-Free-Insurance-Quotes.com. He provides more insurance information and offers free money saving auto, home, health and life insurance quotes that you can research in your pajamas on his website.
High Risk Auto Insurance - How To Lower Rates
How is your driving record lately? Do you have a large amount of speeding tickets or maybe a few car accidents on your driving record? High risk auto insurance generally means one thing for sure, higher car insurance rates. Even though high risk auto insurance rates are typically higher, there are a few things that you can do to reduce your costs now.There are other factors here as well. Insurance companies will continually deem men a greater risk than ...(related: Insurance)
Insurance For The Self Employed And Those Seeking Health Insurance
First of all, congratulations on deciding to go out and make it on your own. The rewards and excitement of making it on your own can not be found anywhere else. Now, when looking for insurance for the self employed for a person like yourself, it's important to remember that generally you'll find better rates if you deal directly with the insuring company. There are many confusing options available but the good news is t...(related: Insurance)
Life Insurance Basics
One of the most important things you can do as parents is to ensure the financial welfare of your children in the event of your death. Life insurance is the best way to be rest assured that your children will be taken care of if you die. Although we never like to think of that ki...(related: Insurance)
How To Best Handle Health Insurance Plan Changes
Many economists have suggested and recent economic data indicates that the economy is steadily moving in the right direction. A combination of several factors has no doubt had a negative impact on the economy over the last several years.The recent state of the economy, combined with the increasing cost of healthcare, has made it difficult for all size employers to continue to offer the same level of employee benefits. In the case of health insurance, future plan modifications may be necessary over the next few years.After much consideration, the...(related: Insurance)
Consumer Driven Health Plans [ Cdhp ]
Do you know that skyrocketing health care costs have been draining the federal government and employer's exchequers over the last couple of years? The health care costs account for 15.5 percent of U.S GDP and is the most expensive benefit paid by employers, seriously affecting their competitiveness in the global market. Health care spending is projected to top $1.9 trillion in 2005, about twice the amount being spent on education. According to the Employment Policy Foundation, employers have spent $331 billion last year for health insurance, a 50 percent increase since 1998. All of these never-improving alarming statistics did result in de...(related: Insurance)
How To Match The Right Insurance Policy To The 4 Stages Of Life
As we go through life our needs change. A Young man or women with a family has very different insurance needs then the Empty Nester. Here is a guide to help you determine what type of insurance best matches your need based on the 4 Stages of lifeStage 1 While traveling the great state of Missouri one of the biggest objections I hear is why do I need life insurance. I'm young, single and healthy. That is the best time to buy life insurance. The younger you are and the healthier you are the cheaper life insurance is.When you are still young and single you may not really need life insurance but that is the best time to buy it. A small whole life policy of 50,000 or maybe 100,000 is really is good investment for a young person. As long as y...(related: Insurance)
Auto Insurance For Young Drivers
The biggest worry of most parents today is their children growing up and beginning to drive. They dread having to add them to their auto insurance policy because of the increase in premium. Unfortunately, all children grow up and when they start driving this has to be done. There are several reasons why insurance for young drivers is so high.The first reason that premiums are high for young drivers is their lack of driving experience. You will need to have, at the least, over three years driving to be quoted a lower rate.Next is their age itself.. If they are under the age of 25 the rate will mostly likely be fairly high. Normally a single male driver rates higher than a single female. This...(related: Insurance)
Life Insurance Benefits
Life Insurance is a legal contract between you and a life insurance company with the purpose of providing an income to spouse, children or other beneficiaries in the event of your de...(related: Insurance)
Who Sets Auto Insurance Rates?
Auto Insurance rates are a complicated business. Have you ever wondered who sets your auto insurance rates and how the rates are actually derived?Many factors determine how much you will pay. Most of these are common sense and you probably already know but let's go over them just in case.The very first thing that occurs is that the insurance company determines all its costs for the previous year. This includes all claims, the cost of opera...(related: Insurance)