How Much Life Insurance Is Enuogh?
Keywords: life insurance, term life insurance, term life insurance quote, life insurance rates
Before you can start requesting quotes for life insurance online you first have to determine how much insurance it will take to cover your needs. Everyone’s life insurance needs are different depending on their own unique personal situation. A young couple with several children will have drastically different needs than a middle aged man with no dependents.
One of the simplest methods for figuring your life insurance needs is to simply multiply your current annual earnings by the number of years you expect to work before you retire. For example if you are currently 35 years old and plan on retiring when you are 65 then you have 30 years left that you are expecting to be working. If you currently gross $50,000 a year then you would expect to make $1,500,000 or 1.5 million over your working life time.
To directly replace that means that you will need a life insurance policy worth 1.5 million. Now this may seem like an extremely high level of insurance but as you will see there are some factors that can increase the amount needed as well as factors that will reduce the amount needed.
The number we came up with using the above calculation is simply a starting point, now we will discuss some factors that can actually increase the amount you should purchase.
The first thing to consider are the costs involved with death, the most obvious one is the cost of an actual funeral. The cost of an average funeral today runs between $6,000 and $10,000, this is an added expense that you should figure in when determining how much insurance to purchase. The other possible death expenses you need to consider are medical bills, legal costs, and any applicable taxes.
The other thing to keep in mind are the other benefits of your job that will be lost when you pass. Probably the largest and most important one to consider is health insurance. If you health insurance is currently provided by your employer then you need to figure what it will cost your family to purchase health insurance somewhere else and add that to the amount of life insurance that you purchase. For example if you determine that a non-employer subsdized health insurance will cost your family $300 a month then you will need to add $108,000 ($300 X 12 months X 30 years) to the amount you need.
Now for some good news, we will discuss the factors that will reduce the amount of insurance you need to purchase. In most cases people will subtract the amount of money they have in any current savings plan from the amount of insurance they need to purchase. Probably the most significant factor is social security death benefits. If you have dependents and have paid enough into social security then they will be eligible to receive monthly payments. The amount of benefits that your dependents can receive is based on many factors to find out exactly what your family could receive you will need to contact the social security office. For our example we will use a total monthly benefit of $2000 for the family. In this case you take $2,000 X 12 months X 30 years for a total pay out of $720,000. Now if you take our original 1.5 million and add the $108,000 for health insurance and then subtract the social security benefit of $720,000 you end up with: $888,000. This has dropp
ed the amount you need to purchase by nearly 50%.
This is just one method of figuring your life insurance needs, everyone will have different needs for life insurance.
Steve Welker
Owner & Operator of www.term-life-4u.com
Previous Articles Highlighter:
What's In Your Wallet? Is It The Right Credit Card For You? (1)
If you travel frequently one of these cards could be very advantageous to you. Another common type of card you will see anymore are reward cards, these are cards that will reward you for using them.
If You Want To Make Money You Need To Learn How (2)
The Internet abounds with information on how to trade and make money doing it. There are literally hundreds of web sites with beneficial information and there are a multitude of books available to help you learn about all aspects of FOREX trading.
Don't Lose Your Money In The FOREX Market - Have A Strategy (3)
While watching the movements of a currency pair you may feel that you are letting an opportunity pass by if you don't get involved. So you buy only to see the price start moving against you, in a panic you sell at a loss, to then watch the price recover.
Are You Winning? Calculating FOREX Profits And Losses (4)
A pip is short for Price Interest Point; this is sometimes also referred to as points. Currencies are traded in very large lots so even a small change in the value can create a significant profit or loss.
FOREX: Reading Quotes For Success (5)
The base currency is the first one indicated and the quote currency is the second one. For example USD/EUR = 0.8259 The pair of currencies is the US Dollar and the European euro.
FOREX Software: A Critical Element For Success (6)
More advanced packages will also offer charting capability that can show you many different viewpoints. Any good broker will provide you with basic software free of charge just for using them as your broker.
FOREX: There Is No Free Lunch. Know The Risks (7)
Limit orders are used to open a trade when it falls to a certain price or close it when it rises to a specified price or profit level. Interest Rate Risk: This can result from differences in the interest rates in the two countries involved in the currency trade.
Are FOREX Signals Fool Proof? (8)
High volume, especially if it is near the bottom of the market can indicate the beginning of a new trend; where as low volume shows a lack of trader confidence.
Find Life Insurance Online. Term Life Or Whole Life? (9)
You might also have to pay taxes if the value of the policy is higher than the premium. Term life insurance is only in affect for a set period of time, this time period is known as the contract period.
Technical Analysis Of The FOREX Market (10)
These may be available on your brokers site or could be part of their software. You should learn the market and study trends before for a period of time before you begin actively trading.
FOREX Fundamental Analysis (11)
They are looking for information about unemployment forecasts, political ideologies, economic policies, inflation and growth rates. Fundamental analysis will provide you with an overview of currency movements and a broad picture of the economic conditions.
FOREX Beats The Stock Market (12)
Each share of a stock a person owns represents a small ownership of the company. Stock values fluctuate based on the fortunes of the company. When the company is doing well the stock price will increase, at this time the investor can sell their stock to capture the profit or they can continue to hold it in hopes of greater profits in the future.
Do Not Lose Your Shirt With A Margin Account (13)
This allows you to limit your losses while still having the opportunity to realize a profit. Another risk that many people overlook is that if the price nears the point where your losses are close to being equal to the value of your margin account your broker may close out your position.
Technical Analysis - Reading FOREX Charts (14)
It is easy to tell at a glance if the price rose or fell because the left tab shows the opening price and the right tab the closing price. Then the bar will give you the price variation.
Find The Right Broker (15)
Everyone needs a margin account to effectively trade in the FOREX exchange, be sure to get the details of the broker's margin accounts and fully understand them before opening an account.
FOREX Or Futures. Where To Trade (16)
This is the gap between the currency buy price and selling price. In futures contracts the trader has to pay commission fees on every transaction. Due to the extremely high volume of trades in the FOREX market most transaction are executed almost immediately, this allows for better price control of your trades.
Getting Started With FOREX Trading (17)
Then you will need to fund your account so you can start trading. You can fund the account several different ways such as wire transfer or even credit card depending on the broker.
Low Rate Car Loan: How To Get The Best Interest (18)
It is now becoming easy to get the loan by applying online. Nevertheless, it takes a fair bit of work and time to look around in order to find a deal that satisfies you.
Cleaning Up Credit Report - How You Do It (19)
If any derogatory information is provided, one can contest the issue and bring it to the notice of the bureau. The bureau must reinvestigate, make necessary changes and send the corrected copy to all the creditors who have analyzed the earlier one in the recent past.
Debt Consolidation Services For Loan Reduction (20)
These services are personalized to help clients with different financial history. They come up with various ways of resolving debt issues of individual client by counseling with them and mapping out a plan stop the harassment, lower interest, or eliminate debt all together by working as a facilitator between the consumer and the creditor.
Newer Articles Highlighter:
Make Money With This FOREX Strategy (1)
Technical analysis is based entirely on finding and analyzing these trends. The market moves in distinctly identifiable patterns, the patterns have been studied for years and are well known.
FOREX - Use Options To Reduce Your Risk (2)
If the holder will gain nothing by exercising the option then the actual value of the option is zero. The value of the option at any other time during the contract is what is called the intrinsic value, that is the value if the holder were to exercise the option at that time.
FOREX Accounts - One Size Does Not Fit All (3)
This will cause you to lose the money you invested into this trade but you will not end up owing the broker money. The downside to this is that if the currency rebounds you will no longer have a position that you could profit from.
Getting Started With FOREX - Selecting A Broker (4)
The spread should be clearly stated on their website and should also tell you if the spread is fixed or if it can vary under certain circumstances. Check to see if the spread is the same for all account types, some brokers charge higher spreads for mini-accounts.
Find Life Insurance Online: Preparing To Request A Quote (5)
They will also need to know your family health history for many of the same disorders. You will be asked about any major surgeries, including when they happened and what they were for.
Estate Tax Saving Strategies (6)
Estate tax planning should be done once you acquire a property above two million dollars, as this is the current limit up to which no estate tax is applicable. In case you avoid it then your beneficiaries or your heir may have to shell out 45 cents on every dollar of your estate value.
The Role Of A CPA In The Estate Planning Process (7)
Estate and financial planning helps you preserve your hard earned estates. Planning for disposition while you are alive as well as after death is very important. With effective tax planning you can eliminate all your tax burdens and relax by knowing that your beneficiaries will get everything instead of it going into the government coffers.
Understanding The Need For Proper Estate Tax Planning (8)
Estate tax planning is essential if you want to preserve your wealth for the coming generations. In order to start planning, you need to know the potential estate tax liability.
Tips On Easy Estate Planning (9)
On finding this limit, you can start with the other legal requirements that you need to get done. There are websites that give you information and provide you with a will, power of attorney agreements and other legal documents that you may need.
Texas Children In Danger Again: Bush's Restrictions On The Children's Health Insurance Program (10)
Under the new guidelines, Bush would also impose co-payments or premiums equivalent to the cost of private insurance and enforce long "waiting periods" for middle-income families. For those families whose incomes exceed 250% of federal poverty standards, "the state must establish a minimum of a one-year period of uninsurance for individuals." Additionally, "the number of children in the target population insured through private employers [must] not [decrease] by more than two percentage points over the prior five-year period." Basically, that means children must go uninsured for one year before becoming eligible for CHIP, states must prove that families are not switching their children from private, employer-sponsored insurance to CHIP, in addition to proving that the state has not had such a trend for five years.
Lake Arrowhead - A Sight To Behold (11)
There is plenty to do in Lake Arrowhead, with a number of fun activities available to residents. These include an incredible golf course, a marina, swimming and tennis sites, and, of course, the lake itself.
The Best Credit Card Offer Is Still Possible (12)
There are factors to consider when weighing offers from various companies. It does not matter how you are going to use the credit cards, or your current lifestyle. Every person first considers the APR when choosing the card they wanted to have.
Student Loan Consolidation Information - How You May Obtain No Credit Loans (13)
Perkins Loans are the other type of no credit necessary student loan with a reduced interest rate loan currently @ 5%, it lets dependent undergraduate students borrow up to $4,000.00 with a cap of $20,000.00, it's important to keep this information in mind when considering any student loan consolidation information.
Can You Use Student Loans To Pay Off Credit Cards? (14)
Student loans tend to have lower interest rates than credit cards and when they do then this will make sense to use it because often you don't have to worry about paying off student loans until six months after school is done, but with a credit card they tend to be monthly payments.
What If I Miss A Home Loan Payment? (15)
Most of these problems can be avoided if you simply contact the lender as soon as possible and be willing to work with the lender to make up the missed payment or payments.
How To Use A Secured Credit Card (16)
If you have bad credit, you may wish to use a secured credit card to help you improve your credit score. In addition, a secured credit card may be the only source you will have for obtaining a credit card.
5 Reasons To Fail In Day Trading (17)
5. Too much trading : You need to exercise caution when it comes to the amount of trading you do. To win, you don't have to trade every day or even hold more than one position on the market.
Federal Student Loan Consolidation - Get Your Facts Straight Now! (18)
These programs will combine multiple loans into one loan which not only will save you money but it cuts out the hassle of multiple payment to multiple lenders. Consolidation Backed By Federal Government Federal student loan consolidation is backed by the federal government and allows you to extend your repayment terms.
Basic Principles Of A Loan (19)
They are happy to do this. As a general rule, try to keep your non-mortgage debt payments below 10-15% of your monthly take home pay. Peter Kenny is a writer for The Thrifty Scot, please visit us at www.loansubmit.co.uk and www.thriftyscot.co.uk
Futures Trading - The Good, The Bad And The Ugly! (20)
One thing to always keep in mind is that the market is unpredictable. No matter how sure you are that you are backing something that will win, trading is nothing less than gambling.