 |
|
|
||
|
Malls |
Auctions |
Gifts |
ShopBots |
Coupons |
Search Engines |
Consumer Rights |
||
| |||||
|
|
| ||
|
World - Finance - Insurance - Life |
 |
|
|
      |
|
|
|
Determining Your Life Insurance Needs The purpose of life insurance is to take care of dependents upon your death. There are three basic ways to figure out how much you need. 1. Income Replacement Approach - Add up your expected income until the day you retire. 2. Expense Approach - Add up expected expenses for your dependents: • estate taxes • funeral costs • outstanding debt • mortgage payments • medical expenses • education expenses • food, clothing utilities • property taxes, insurance • child care • nursing care • retirement savings • travel expenses 3. “Rules of Thumb” - These calculations, while easier to compute, are less likely to give an accurate result. a. Some sources advise a multiple of 5 to 10 times your annual income. Younger people might use a higher multiple. Older people with self-sufficient dependents would use a lower amount. b. The Rule of 200. Multiple the monthly needs of your dependents by 200. Then subtract off available assets. (This assumes the needs of your dependents don’t change) |
|
|
About Us - How
to Add a Site - Contact Us Copyright © eBuyingGuides Inc. All Rights Reserved. |
