Wednesday, October 01, 2008

Life Insurance Calculator

Many people considering life insurance don’t know as much about it as they should. Do you know how much life insurance you really need? A life insurance calculator can help you determine this. Take the time to do the research and determine what you will need.

What type of information might you need to enter into a life insurance calculator? Consider these points:

The cost of your funeral arrangements
Total amount of your outstanding debts
Estimate of the college and education expenses of your child(ren)
How much income your family needs per month if you pass away
For how many years your family will need to rely on this income
The total value of your net worth (savings, stocks and bonds, retirement funds, etc)
Total value of any existing life insurance plans
Estimated inflation rate
After-tax investment yield

The life insurance calculator will calculate these totals once you fill in the blanks. You can then have a better understanding of how much life insurance you need while you are shopping for quotes or re-evaluating your current policy.

These points should all be taken into consideration when using the life insurance calculator to help you determine how much your expenses will likely be and how much life insurance you need. Get informed and be prepared so you don’t leave your family stranded in their time of need.

If you use a life insurance calculator to evaluate your life insurance needs, it’s also important that you update it at least once a year. Re-evaluate your situation and also update the inflation rate and other factors that may change so that you will always have the most updated information possible. When you do this, you can ensure you have the best policy for your needs at all times.

3 Comments:

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December 11, 2009 4:05 PM  
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