Life Insurance Needs Analysis
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Term life insurance is the most affordable type of life insurance product available. Employers that offer options for employees to obtain term life insurance provide a convenient method to purchase life insurance within their employees means.
Do you know how much life insurance you need to provide adequate funds for your family or beneficiaries after your death? As a guide, financial planners suggest your financial plans include life insurance of 5-10 times your annual salary. Exactly how much depends on many things such as current debts, number of dependents or others financially dependent upon you now or in the future. Complete our worksheet below for an analysis. (Use your tab key to move to the next question, do not use punctuation such as commas and decimals, and round to the nearest $1,000.)
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Enter 5-10 times your annual salary. |
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Enter your current amount of life insurance.
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Now you'll need to determine and enter your family's future needs/expenses (i.e. tuitions, weddings, funerals, care of children and/or parents, charitable contributions).
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Experts say you should have finances set aside (an emergency fund). This amount is generally 3-6 months of your current living expenses. Your monthly living expenses include rent/mortgage, loans, food, clothing, household expenses. Enter your total amount.
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Determine your net worth and enter it. This includes savings and checking accounts, stocks, mutual funds etc.
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