Tag Archives: financial planning

How Much Life Insurance Do You Need? (part 2)

This is continued from PART 1 Here’s how it works out… Let’s assume that the breadwinner earns $50,000 each year.  We will use the income approach to determine the amount of coverage needed on his life.  The duration of the risk is 25 years and the assumed interest rate is 3% (this is the inflation [...]

How Much Life Insurance Do You Need? (part 1)

What is your life insurance “need”? Well, to get things started off I think that a distinction between “needs” and “wants” is important. For the sake of simplicity I won’t be discussing other forms of insurance (i.e. critical illness, disability insurance). An insurance “need” arises where there are definite, identifiable risks to the people that [...]

What’s the Point?

Let’s face it life insurance is something that you pay for hoping that it will never be used. This fact alone is enough to turn people off of even considering it as a necessity for proper financial planning. It’s interesting that people don’t view car insurance or home insurance in the same way…they see the [...]