|How much life insurance do you need?
The primary purposes of LIfe Insurance is to ensure that surviving beneficiaries will have an income sufficient to meet their needs.
Ask yourself three questions:
Example: Your beneficiaries will need an after-tax income of $2,000 per month over a period of 20 years. How much insurance should you buy?
Answer: If your survivor's tax rate will be 28% and the proceeds of the Life Insurance Policy can be invested to yield 7%, compounded daily, you'll need $156 of principal for each $1 per month of after-tax income. Therefore, you will need 200 x 156 = $312,000 of Life Insurance.
Keep in mind there are many different types of life insurance. The best kind of life insurance is the kind that is in force when you die.
Life insurance has never been more affordable than
it is today.