How much life insurance you need?

Life Insurance

Life is different amounts for each of them. There are mainly two factors come into play, that the purchase of life insurance. These two factors are the amount of money you need for your family to the same standard of living, and how much you pay per month for premium.

Try our life insurance calculator

How long does it take for my family to the same standard of living?
Your life, which largely depend on how much money your family will have the same standard of living. This means that the monthly or annual income for small and big expenses, such as mortgages, car loans and education. Depending on your situation, your life will change. If you have children, young and do not believe that they have college funds. To calculate the approximate cost for the college, and insert into the overall cost. In addition to the College of Education and the cost of your car and mortgage payments at their own expense report. Finally, the calculation of the additional costs necessary to the same standard of living. Depending on your investment knowledge and death, usually shop around and find a financial advisor are comfortable. Financial consultant should be able to make their money in the market and get at least 5% per year return. Most of the time, returning a total of up to 8% depending on the investment. Estimated income taxes by 35%, while its annual income. Divide the annual income of 12, and this is your monthly income to pay expenses.

For example, your family spends $ 8000 a month. You should be more than $ 3000000 of coverage. This is probably conservative amount of life insurance and $ 3000000, accounting for 5% per year is $ 150,000 in annual revenue. With taxes, their annual income is around $ 97000 and $ 8000 per month.

How much can I afford to live?
Should the amount of life insurance, if the annual contribution is readily available, rather than the other major expenses. Be smart when you buy life insurance. Know your limits, as if you had to cancel the operation, and the fact that they can not afford the payment, will receive $ 0 to buy, and you will not benefit from his death.

Found that half of where they feel comfortable in the price premium and the amount of coverage that he has the same standard of living of his family.

Please note that this article is informative and should not be considered professional advice.

Related Posts by Categories