If you’re in the market for life insurance, you may want to consider using a term life insurance calculator to help you determine the right amount of insurance to meet your needs.
Among the most important questions to ask yourself before choosing your insurance policy are the following:
What type of life insurance do I need?
How much can I afford to pay for insurance?
How much life insurance protection do I need?
So, ” How much insurance do you need? ”
There’s the old Rule-of-Thumb that insurance agents use, which says you should have 7-10 times your annual income in life insurance.
For example, if you make $50,000 per year, you should have $350,000-$500,000 of insurance coverage to adequately protect your family.
This is based on the idea that if your beneficiary invests the death benefit of the life insurance policy and gets a reasonable rate of return on the investment, that person would receive the income from the investment to replace your income.
The thing is, even if you have 10 times your income in insurance protection, your beneficiary would need a 10% return on the investment to replace your income.
So, there must be a better, more accurate way of determining the right amount of insurance for you. There is – You can use a insurance needs calculator.
With a term life insurance needs calculator you answer some questions about your personal financial situation, and then press a button that calculates the right amount of insurance to meet your needs.
Usually, there are about 5-15 questions to answers, and you get an instant, accurate figure that shows you how much insurance you need to protect your loved ones. It takes less than 2 minutes to answer the questions, and instantly get your life insurance amount.
The main benefits of using an insurance needs calculator to figure out how much life insurance to buy include:
Easy – You just answer a few questions.
Quick – You get an instant answer.
Customized – It’s based on your personal needs.
Accurate – It fits your financial situation.
When you think about it, using a life insurance calculator to quickly and easily determine your insurance needs is one of the smartest things you could do when it comes to protecting your family.
Why? Because you can find out exactly what amount of life insurance meets the personal needs of you and your family.
That means you buy enough insurance to properly protect the ones you love in case you pass away. And, you don’t buy more insurance than your family needs – so you keep more of your hard-earned money in your pocket.
It just makes sense to take the time, a few minutes, to find out how much life insurance is right for you…especially when it’s so quick and easy to find out online in just minutes.