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Here is an article on the general subject of life insurance. It has been added to this site because it should be of general interest to people searching for this, or a similar phrase. Even if you are not searching for the phrase "life insurance" specifically, I hope that you enjoy this article, since it fits in with the general theme of this site.
Life Insurance Needs
by Ivon T. Hughes
Circumstances, such as age, medical conditions or interest rates, can significantly complicate the question of how much life insurance you need. The insurance industry itself suggests different approaches.
Life Insurance Formula I Use
Start with your current annual salary, after taxes. If your family will need this amount of net income at least, you will have to provide enough capital to generate this amount. For example, if your net contribution is $25,000 a year, your family needs $1,000,000 at 5% interest to continue to generate that amount of income. In fact you’ll need more, as taxes have to be paid on that $25,000 interest you receive.
In concrete terms, the life insurance beneficiary gets one cheque. Then, immediate expenses are paid. After that, the remaining sum is invested, so that replacement income can be paid out monthly from the investment income it generates. Life Insurance.
Capital Investing
And it is this part that many people fail to understand. Yes, you pay immediate expenses, but you can’t just spend the balance of the capital. The money must be invested to provide an income which continues to support the family. It's only after children are grown and gone, that perhaps the capital can be invested in a very safe investment such as a life annuity, which will provide an income forever for the remaining spouse.
Life Insurance As a Retirement Plan
If this plan is followed, and you arrange an investment to provide income now, the capital will still be available to keep providing protection for many years to come. If you buy insurance with this plan in mind, then you have capitalized on one of the great uses of life insurance.
Ivon T. Hughes of The Hughes Trustco Group is a licensed Insurance Broker. Author of The Life Insurance Handbook. - Get a FREE Copy TODAY! Email: info@trustco.ca Web: www.hughestrustco.com
How to Choose a Life Insurance Policy
If you have a spouse or children, it will give you peace of mind to make sure that they will be safe and secure when you pass away. The best way to do this is to purchase a life insurance policy.
Key Person Life Insurance
Small businesses help keep our country going. But a small business needs help to keep going after the loss of someone vital to the company.
Life Insurance For Brokers
Like any other purchase, you should buy term life insurance from the best company with the best price.
Save money on life insurance
In some states and provinces, people are choosing to live without insurance because the cost of insurance on an ongoing basis is prohibitive, compared to the chance of dealing with high costs when there is a break-in or an accident.
Term Life Insurance The Benefits
When people think of term insurance, they sometimes think of whole life insurance and its costs. And because they feel they cannot afford the coverage they want and need, they don't buy any.
