Do you need Life Insurance?
Estimating your life insurance needs!
is no substitute for financial planning.
Much is Enough?
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
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.
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?
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.
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.
Your Life Insurance Needs
this worksheet to assist in determining your basic income
and expense requirements.
1.) Funeral Expenses ____________________
2.) Estate Expenses _____________________
3.) Charge Accounts ____________________
4.) Car Loans __________________________
5.) Mortgage ____________________
(6 Months Income) ____________________
7.) College Fund ____________________
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 ____________________
Total Insurance Needs
(a + b + c) ____________________
Less Existing Insurance and
Other Liquid Assets ____________________
Life Insurance Need =========================
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
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
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.
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?