Do you need Life Insurance?
Estimating your life insurance needs!

There is no substitute for financial planning.

How Much is Enough?

Lesson plans, quizzes, conferences.
As a teacher, you know how important it is to plan ahead. After all, you're responsible for seeing that your students cover the required material. You work hard to make sure that they do.

That means planning for illness, too. If you can't make it in, there's a substitute ready to step in so your students aren't hurt by your absence.

What about your family, though? Do you have a plan that would take care of them if you couldn't? Nobody likes to think about it, but what would happen to your family's standard of living if you died today?

That's why life insurance is so important to your financial plan. Life insurance can replace your salary, pay your mortgage, and provide an education for your children. In other words, it can provide your family with the financial security you would have provided if you were there.

But how much life insurance is enough?
To help you estimate your insurance needs and determine whether your current insurance is adequate to protect your family, we've developed the following worksheet.

Estimating Your Life Insurance Needs

Use this worksheet to assist in determining your basic income and expense requirements.

"Have to"
1.) Funeral Expenses ____________________
2.) Estate Expenses _____________________
3.) Charge Accounts ____________________
4.) Car Loans __________________________

=============================================
a
"Want to"
5.) Mortgage ____________________
6.) Emergency/Readjustment
(6 Months Income) ____________________
7.) College Fund ____________________

============================================
b
Income Replacement
8.) Annual Living Expenses ____________________
9.) Spouse's Income
plus Social Security ____________________
10.) Net Income Need (8-9) ____________________
11.) Divide 10 by 6% (.06) ____________________
12.) Capital required to
provide Income ____________________

===========================================
c
Total Insurance Needs
(a + b + c) ____________________
Less Existing Insurance and
Other Liquid Assets ____________________

Net Life Insurance Need =========================

The Lonely Decision

Life Insurance isn't something people brag about to their friends. It is a very personal matter. In fact, it is a lonely decision for most. It's like buying flowers for someone…you don't first ask them if it's okay. No one will pat you on the back for buying life insurance…but you will have the inner satisfaction of knowing you're doing the right thing.
You see, it takes more than money to buy life insurance. In addition to money, it takes good health, which no one can guarantee…and it takes character. Does it take character to buy stocks, bonds, mutual funds, or real estate? Character means doing the right thing when the chips are down. Buying insurance also means having foresight, because you have to do the right thing before it becomes necessary. When you know you need life insurance, it may be too late to get it.

Some people like to involve their attorney and accountant in their decision regarding life insurance. The basic decision does not involve legal or accounting factors. It is based on economics and emotion. It doesn't make sense to ask someone else if you love your family or want your business to continue or whether you want your lifetime liquidated. These are your decisions to make. Your attorney and accountant may figure out what the costs are, but they aren't going to pay the bills. Insurance will. If you can't afford the premium, how can others afford the problem?