How Much Life Insurance do I Really Need Rule of Thumb
Let’s discuss the answer to a question, how much life insurance I really need? It is parent’s responsibility to protect children’s health with health insurance plan. Many families ignore the need for health insurance and put it at the end of cost list. According to a survey made by LIMRA, a life insurance, and financial services association, 30 percent of U.S. households have no life insurance and around 50 percent people think that they need more life insurance. About 86 percent say they have not purchased it because it is more expensive than it should.
More than 50 percent of surveyed people say that their basic needs such as food, clothing, education, transportation, and electricity cost are so high that in spite of wishing to buy health insurance, they can’t. Here, we have some points to discuss.
Here we will discuss how much life insurance do I need Calculator. While figuring out insurance amount, keep in mind that if you not received any income then what it would happen. Always think about your loved ones and family. According to the CUNA Mutual Group, one should buy life insurance equal to 5 to 7 times more than income earned. Though it is not the proper way to calculate, it seems easy way.
Many websites also help to calculate the amount of health insurance. There are some well-known websites which have an accurate calculator according to family need.
1) LifeHappens.org:
This website provides a life insurance calculator that helps people to calculate accurately the amount of insurance policy. It compares potential expenses and savings for all events from college expense to funeral cost, from mortgage to current saving, investments and retirement funds.
2) CUNA:
CUNA is a Mutual Group Company and has its own website to calculate insurance as per need and savings. It is more indicative and estimates individually.
3) MassMutual:
MassMutual is a giant group of Mutual Fund Investment and measures all economic contributions towards family (over a course of employment) by a special tool known as Lifetime Economic Value tool. it needs only income and age to calculate. The method is quite simple. For example, 40 years old man is making $60,000 and plan to retire at age of 65. Then he would need an estimated $1,151,761 to protect his or her family. More information such as employer provident, retirement plans and personal service makes the more accurate calculation.
Above sites do not give an exact idea or any magical formula about the amount of insurance then also it can help in the much better way.
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