HOW Much Coverage in Life Insurance

cheap life insurance miami How
much coverage do I need in a Life Insurance?
As
it usually happens with other
types of insurance the key
question you should ask yourself is:

How
much coverage do I need in a Life Insurance?”

The
answer is: “It depends” Although the experts suggest that a
good way to purchase a life insurance
is
calculating the coverage on the base of between five and eight times
the amount of your present earnings, the final decision concerning to
your necessities is on you.

The
amount of coverage of Life Insurance needed…

depends
on several factors: whether you have dependents (people who depend
economically on your earnings) or not, how much you think they will
need after your demise (for immediate expenses as well as for long
term ones) and your present financial situation. Let’s have a look
on how these factors can influence on your decision:

Do
you have dependents?

If
you are single or without dependents (it means a spouse, children,
elderly parents, etc) depending on your financial support of your
earnings, you possibly do not worry to leave financial benefits after
you death. You can also decide you
do not need the protection of a life insurance

or think it is not the investment you want to make.

Perhaps
you can considerbuying a life insurance
as a way of canceling the expenses related to your demise (funeral,
burial expenses, taxes, outstanding debts, etc) such as give the
death benefit to the person or institution of your election, such as
a friend of your, a charity organization, or a university.

If
you have family at your expense (children, elderly parents who rely
on your support, or a spouse or concubine who does not work) you
have different needs of life insurance

comparing with a person that is financially responsible just for
his/her own life because..

You
Have More People Depending on You and Your Earnings
.

If
you are a single father or mother, how will your children be
financially maintain if you die?

Do
your relatives or friends have the necessary sources to assume the
responsibilities related to your
children without a life insurance
?

If
you are divorced and receive alimony, what would you do if
your ex-spouse dies

and you do not receive it anymore?

What
will happen to your children

if the pays for alimony from your ex-spouse, stop coming after
his/her demise? That’s why many agreements of divorce include the
purchase of a life insurance policy.

The
beneficiaries of this policy can be your children, in a trust
.
What
would happen if your partner stops working temporarily or
permanently?


Or
if you or your
partner dies, will you and your family be able to live on without
your present earnings?


Or,
what would happen
if you or your partner decided to return to the labor market
temporarily or permanently?


And
what about if he/she dies and this person is the breadwinner…

Who
will pay for someone to take care of your children or elderly people
under your responsibility at home?

In
case that you and your spouse both work, what would it happen if any
of you dies?

Will
the surviving spouse stay at home and pay for the maintenance, school
and the rest of the family necessities?

Suppose
the case that you and your spouse manage a small company, will you or
your partner be able to take control of the company and manage it in
a profitable way if one of you two has disappeared?

It
is important to think seriously about what type of protection you want to provide to your family
in case your demise leave all those people at your expense without
the financial help you provide to them at present.

Considering
the case that the family at your expense, think about how much they
will need to survive after your death
.
For example:

What
amount of money do you want to leave them to cover the expenses after
your demise?

And
again, for example:

What
amount of money will they need to pay for the immediate expenses such
as medical services, funeral and burial charges, etc?

How
much will your dependents need for the permanent and daily expenses?

To
know this amount you have to sum the quantities you would to need
cover all these needs on an annual base previously paid with your
earnings (such as: food, transport, clothing, schooling, etc) and
multiply the quantity obtained by 5, 10, 15, 20 years and so on, with
the aim to determine the amount of money your family will need after
your demise.
How
many outstanding debts you have to cancel at present (it means,
mortgage, car
payments, education loans, etc)


and
how much will your family need to cancel all these commitments after
your death?

Which
long-term goals do you have for the family at your expense you wish
they will be able to afford in case of your demise (it means, paying
your child’s university carrier, providing care to your elderly
parents, etc) and how much will they need to reach these aims?

Once
you have evaluated your family’s immediate and long-term goals, you
will be able to determine the amount of money they will need to
afford all these expenses after your death. You also have to consider
any other benefits your family can receive after you die (social
insurance, death benefits proceeding from your work, pension,
retirement, any insurance policy given by the employer, etc)
.

In
other words: although the main rule to buy a life insurance
coverage
is to calculate it on the base of eight to ten times
your salary, you can get more accurate help respect to the ideal
amount using the previous analysis and the sources listed on the
following section. To know more about life insurance options and
determine the levels of life insurance coverage suggested, you should
visit:

Life
and Health Insurance Foundation for Education, life Insurance
calculator; Insurance.com; Insweb.com; Insurance Information
Institute; and Selectquote.com

 
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