For most people, determining how much life insurance one should have is not an easy task. Confronting the subject of death is difficult enough, but add to that the question, “How much is my life worth?” and you now have a subject that most folks would rather avoid. We have looked at many life insurance calculators that have line items for every family expense one can think of and multiply those expenses by an estimated time one would need income to support those expenses. While this is a great exercise, we have found the task to be too time-consuming for most people.This income-replacement approach has been used by many life insurance agents over the years and it’s fairly simple to use.

Life Insurance Calculator
Should a breadwinner die, the financial impact for dependents
is the loss of the breadwinner’s income. The following will calculate
the money needed for a replacement income.
1. Gross Annual Income Required
by dependents:

2. Number of years this income will be required:
3. Estimate the interest rate:
4. Estimate the inflation rate:

The amount of life insurance needed to replace your annual income is:

Latest News

Key Person Insurance for Small and Mid-Size Businesses
key person insurance

Every small or mid-size business typically has a key person or persons that are responsible for producing a majority of the revenue. Service businesses are typically dependent on a key person who regularly delivers revenue from their coveted client list. Should the business lose one or more key persons because of an unexpected death, the […]

Read More
Life Insurance for Marijuana Users
life insurance for marijuana users

Many people are under the impression that you cannot buy life insurance for marijuana users. In fact, many applicants lie about their usage and then are denied coverage, not because they use marijuana, but because they lied about it. Insurance companies refer to this as misrepresentation. The truth of the matter is using marijuana does […]

Read More
The Pros and Cons of Using Life Insurance as an Investment
life insurance as an investment

When we consider using life insurance as an investment, there are as many people in favor of it as there are opposed. Certainly, financial gurus like Dave Ramsey and Suze Orman are against life insurance for any reason other than a death benefit, but remember, while speaking out against most life insurance products, they are […]

Read More