What is the value of life Insurance that I need ?
Follow the steps below to determine if you need life insurance and how much. Before you make your decision, please note the following reasons you may need life insurance: –
a) To cover your final expenses (death is inevitable for us all, we need to ensure that arrangements are in place for us to be laid to rest in a dignified manner).
b) Provide an inheritance for our loved ones, (if there are no savings or investments)
c) Make provisions to cover/repay large debts that you may have incurred during your lifetime.
d) Provide replacement income.
e) Savings for retirement
⦁ Firstly let us ensure that you really need life insurance, do you have anyone that depends on you financially ?
A – No B – Yes
If your answer above was A, you probably don’t need life insurance at this time, however if you think that there are particular circumstances that is unique to you, you may go forward and compare quotations to determine the best selection.
If your answer above was B, we recommend that you get life insurance based on answers to the following (8) eight questions to determine how much coverage you will need. Please review the questions below and record your rsspose
1. What is the amount of annual income that you would need to replace, in the event something happens to you? (include recurrent expenses eg food, transportation, clothing & any expenses, such as services provided for your family at no cost, which would need to be paid for- child care; house maintenance etc
$
2. How long would your family need to receive your replacement income, if you passed suddenly? (after how many years would your dependents be able to sustain
Months –
3. What is the current value of debts incurred (include all your mortgage and all loan balances, plus any other debts your family would need to pay off eg- property taxes, and utilities) .
$
4. How much do you need to have available for your dependent’s education ? (see below average price for college tuition & room and boarding –College board 2021-2022
Public- 2yr in-district US$38,00/yr, 4 yr in-state US$10,740/yr – 4 yr out-state US$27,560/yr. Private -4 yr – US$38,070
$
5.What would be your family’s average cost for your funeral / final expenses? (the average cost in US$ for a funeral (with viewing & burial is US$7,848- according to the national funeral director’s association)
$
6. Outline your savings & investment accounts balance. (please include commercial bank accounts, mutual funds, crypto currency, real estate, stocks and bonds, etc.)
$
7. Do you currently have any life Insurance coverage ? ( please include any employer and personal life insurance, do not include your spouse or partner’s life insurance)
$
8.How much yearly after- tax income does your family have, in addition to your income, which could be used towards replacing your income ( eg – any annual savings (exclude funds already committed to existing debt)
$