Posted on Tuesday, 2nd February 2010 by jkibler
Life insurance calculator Read this and quickly learn how to calculate your life insurance needs service to provide adequate protection for your family.
The purpose of life insurance is to replace your income so that your family can continue to function if you would die. Insurance ensures that your family will be able to continue living as it does now and paying their bills.
To determine how much life insurance you need you must determine how much money your family is going to need over the course of the next seven or so years
Living expenses. Add up how much money your family is going to need per month to live the same as it does now. Then times 12 months and then times 7 years.
Funeral expenses. Depending on the type of service you desire this can go anywhere between $1000 and $10,000.
Taxes. This depends a lot on the state you live in because estate taxes can go up as high as 40%. You should check with an estate lawyer in your area for specifics on this.
Property taxes and outstanding income taxes. Make sure there is enough money to pay these.
Mortgage. Every life insurance policy if there’s a young family involved should have enough money in the benefit to pay off the mortgage.
College expenses for your children. This will be between $25,000 and $75,000 per child.
Your net income per year times seven years.
Add all of these up and then add 50% and that’s about what you’re going to need for life insurance. The reason I add 50% is because everything cost twice as much as you think it will.
Jimmy says make sure you have enough in your life insurance policy to take care of your family for at least seven years after all the bills have been paid.
Whoa Jimmy?
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Life insurance calculator is a tool to determine how much life insurance you need and if you have any suggestions in this area please share with our readers in the comments.
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