Life Insurance Calculator
How much life insurance coverage do you need?
Use this life insurance calculator from Life Happens to help determine your life insurance needs – simply and quickly. With a few easy steps, you can calculate your need for life insurance. Just follow the instructions below.
Human Life Value – Economic Earning Potential
Another approach to determining the amount of life insurance you should own is the human life value approach. This approach focuses more on your economic value to your family or business.
There are many theories on how to buy life insurance, but the only one that provides for your full economic benefit is the human life value approach. Our human life value, as described by the late Solomon Huebner, is the capitalized monetary worth of the earning capacity resulting from the economic forces that are incorporated within our being: namely, our character and health, our education, training, and experience, our personality and industry, our creative power, and our driving force to realize the economic images of the mind.
Needs based analysis focuses on the death benefit and immediate needs. Since it is impossible to predict the future, the needs based approach is flawed. Life insurance calculators can not determine the future, nor what you want to happen. When purchasing life insurance, consider your human life value to help you achieve your full earning and wealth potential.
Important Questions About Life Insurance
What are you worth to your family economically?
Could your family continue with their current lifestyles without your income?
How do you want to be remembered when you’re gone? (Your Family Legacy)
In reality you may not need life insurance, but that’s only because you are not forced to have it, unlike auto and property insurance. If you do you have it, you’ll be glad you do.
Other Considerations for Life Insurance
Rule of Thumb
In most cases, this consideration depends on your thumb size, because every situation is different. If you went by work or group life insurance, this could be 2-3 years of income. On the other hand, if you are purchasing individual coverage and you’re age 35, this may mean 30 years. Because your income and family size can change, this approach is flawed. So, in our opinion, there is no real rule of thumb. If you are uncertain, it is best to use our life insurance calculator.
Myths About Life Insurance
Myths can destroy your ability to create wealth and your value as a person. When you take the time to educate yourself with the truth, you can make educated decisions that you can feel good about.
MYTH – “Whole life insurance is a bad investment”
When talking heads say this, they should be charged with malpractice! Any talk show host, agent or advisor that tells you this should lose their license.. If they even have one.
MYTH – “When you retire you won’t need insurance.”
At retirement you are more vulnerable than ever to loss. And, the fact is if you do want it you may not qualify for it medically. There is no such thing as “self insurance”. In order for you to fully self insure, you have to calculate the value of your asset in liquid cash in the event of a loss.
MYTH – “When you retire you’ll be in a lower tax bracket.”
Do you really believe this? If you do, Robert Kiyosaki (Rich Dad Poor Dad), says you are saying that you are going to be poor. Think about it, if you want to live a similar lifestyle during retirement, there are many variables. What about Income Tax Rates? And, Inflation the stealth tax, is eroding your money faster than you can save it. And, your health is declining while as you are getting older, so you may have increased medical costs.
In our experience as life insurance agents we’ve found that seniors want life insurance more than anyone, but unfortunately can’t always get it because of health issues. This is even more reason to purchase wholelife insurance when you are young and healthy.
How Life Insurance Works
And, if you truly understand how whole life insurance works, you can use it to leverage your other assets and create more spendable income at retirement. Retirement income is where the rubber meets the road, you’ll want as much tax advantaged income as possible.
The main purpose of whole life insurance is to provide valuable guaranteed financial protection whenever the insured should die. But what many do not realize is that it’s so much more. Whole Life provides a wide array of financial benefits, including “living benefits” — a term that refers to the fact that a Whole Life policy provides a ready source of funds for any purpose throughout the policyowner’s lifetime or during key income-producing years.
Just remember, YOU ARE THE ASSET.
“Time And health are two precious assets that we don’t recognize and appreciate until they have been depleted.”
~Denis Waitley
Free Life Insurance Calculator
Feel free to use our life insurance calculator to determine your needs on your own. If you’d like to learn more or apply, contact us when you are considering life insurance. There is no cost and no pressure. Do it now, for you and your loved ones. Contact Us