One of the most useful tools you can use now is a life insurance premium calculator or a life needs calculator. They’re the same thing, but they carry two different titles. There are a multitude of different options to choose from when deciding on a perfect policy for you and your family. You can guess how much you want to earn using the 5 to 10 year income rules that agents use to ballpark a figure for you, or you can use a life insurance premium calculator to get an accurate figure by taking a few more minutes to answer several relevant questions.
Here’s a quick guide to get you started on what information you collect before going into a life insurance premium calculator. This guide is intended for couples with or without children or people who have one or more people who are financially dependent on them:
1. Estimation and funeral expenses. Currently, a low key funeral will cost around $ 10,000. Increase the amount by half or double it completely to take into account inflation or a more elaborate service.
2. Estimate wealth taxes on what you leave behind.
3. Calculate the unpaid debt with your foreclosed mortgage.
4. Calculate how much “crazy money” you need for unexpected emergencies and expenses.
5. If you plan to pay for your children’s higher education, plan for at least $ 75,000 per child. This is for an “economic” college or university. Double or triple the amount if you plan to go to Harvard.
6. What will be the annual family living expenses if you are not around? This could run from $ 25,000 to $ 150,000 for the average family.
7. If your spouse continues to work after your move, deduct his or her salary from the amount of coverage you need. This will lower your premium a bit. However, if you want to plan for an event where your spouse would no longer need to work, then skip this step and don’t expect an additional income.
8. Take into account any Social Security Benefits that your spouse might receive. If you’re not comfortable relying on this, then calculate as if there won’t be. Be aware, however, that the higher the amount of coverage you buy, the higher the premiums will cost.
9. What are your assets? Evaluate your savings and investments and enter this into your life insurance premium calculator when asked.
10. What kind of approach does your husband take for investments? If they are more conservative or more aggressive then respond in kind when / if they ask you this.
Answer honestly and concisely and you get a much-needed coverage overview in no time.