Life insurance creates cash at death. Is the insurance needed to create an estate or to preserve one? .
For example if you are trying to create wealth to replace family income you can use a capitalization method or an annuity method. Total your assets and liabilities at death. The liquid cash that remains is available to generate income. The life insurance needed is the amount to cover liabilities and generate an income.
Online tools can give you an idea. Suggest contacting an insurance broker for further clarification.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
Branch Owner, TWFG Insurance Services, Fremont California and the Greater Bay Area Representing Dozens of Insurance Carriers
Well you will often hear 10X your salary which is a good guideline to go by. What you need to look at is what will be the financial loss to your loved ones if you pass away. So for example if your income is wiped out how long can your family survive without it. Do you have young children that you wanted to put through college. You would want to sit down and start adding up the cost from today going forward. You will be surprised when you really look at the numbers.
Insurance Adviser - Broker, SC Insurance Services, Oahu, Hawaii
The question, "How do I determine how much life insurance do I need" is one that should be asked by everyone and re-evaluated every year or so. Why? Because things and circumstances change. There are a number of formulas that are popular with insurance sellers, so the answer you get will depend on who you ask. I would ask you, "how much do you need for WHAT?" In other words: what is your goal for your insurance?
If you have over $5.2 million in assets you may want your life insurance to protect your heirs from the tax liability of your estate. If not and your mortgage and credit is all paid off, you may just want your beneficiary to be able to maintain the life style you've provided for them for the rest of their life. If you still have a mortgage and credit bill you may want to make sure those are all paid in the event of your demise. Or your "what" may be a combination of things. That is why you need to work with an agent who will truly look out for your best interests and ask you the right questions.
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For example if you are trying to create wealth to replace family income you can use a capitalization method or an annuity method. Total your assets and liabilities at death. The liquid cash that remains is available to generate income. The life insurance needed is the amount to cover liabilities and generate an income.
Online tools can give you an idea. Suggest contacting an insurance broker for further clarification.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
If you have over $5.2 million in assets you may want your life insurance to protect your heirs from the tax liability of your estate. If not and your mortgage and credit is all paid off, you may just want your beneficiary to be able to maintain the life style you've provided for them for the rest of their life. If you still have a mortgage and credit bill you may want to make sure those are all paid in the event of your demise. Or your "what" may be a combination of things. That is why you need to work with an agent who will truly look out for your best interests and ask you the right questions.