1. Total up your debts.
Include your mortgage, car loans, credit card balances, & college loans.
2. Calculate your children's remaining or future expenses.
Include everything from their weddings to their collegiate educations. Be sure to subtract any money that you have saved for these events.
3. Add 15,000 to cover your own funeral expenses.
Believe it or not, this is actually on the low end of funerals, these days.
4. Divide your current annual income in half,
then multiply that figure by the number of years remaining until you retire, up to 20.
The result of adding together figures from the four steps above should provide enough income replacement for your spouse or family to live comfortably if you die prematurely.If you are a nonworking spouse, you do not need to use the 4-step formula. Instead, a safe estimate is 500,000 in the family's children are preschoolers, 250,000 if in elementary school, and 100,000 if the children are still at home but no longer need a nanny. These amounts should reflect enough wiggle room for reduced wages while your family is adjusting to their new life.
If you are interested in getting life insurance set up for you & your employees, give me a shout at jdanner@peoplelease.com
No comments:
Post a Comment