Lately, I have been having conversations with families about this question:
"How much insurance do we need?"
Well, usually the rule of thumb is 15-30 times your annual salary...
depending on age, etc....let me explain:
The correct answer is c) 100% of it's replacement value.
Insurance companies will always try to sell you LESS insurance than what your valuables are worth (whether it's your house, your car, or your life) because they don't want to be on the hook for the entire replacement cost of of your valuables...
...especially if it's a persons economic human life value!!!
So, when it comes to the lives of your loved ones (especially breadwinners), you should always shoot to obtain insurance protection equal to 100% of that persons "Human Life Value"...
...AND NO LESS!!!
Remember the homeowner example:
If your house was worth $200,000 before it burned down and you had insurance coverage of 50% of it's value, would you be able to pay off your mortgage and have a roof over your head?
The same is true with people, especially the breadwinner(s) in a family. Just like the house that burned down, the breadwinner(s) will die some day...it is inevitable.
There are many online calculators you can use, but here is a good one from The Life Foundation:
Human Life Value Calculator
Try it out...find out how much insurance you need...then get a quote from www.beaconbeneficial.com
Please do this...visit www.beaconbeneficial.com
Well, usually the rule of thumb is 15-30 times your annual salary...
depending on age, etc....let me explain:
The correct answer is c) 100% of it's replacement value.
Insurance companies will always try to sell you LESS insurance than what your valuables are worth (whether it's your house, your car, or your life) because they don't want to be on the hook for the entire replacement cost of of your valuables...
...especially if it's a persons economic human life value!!!
So, when it comes to the lives of your loved ones (especially breadwinners), you should always shoot to obtain insurance protection equal to 100% of that persons "Human Life Value"...
...AND NO LESS!!!
Remember the homeowner example:
If your house was worth $200,000 before it burned down and you had insurance coverage of 50% of it's value, would you be able to pay off your mortgage and have a roof over your head?
The same is true with people, especially the breadwinner(s) in a family. Just like the house that burned down, the breadwinner(s) will die some day...it is inevitable.
There are many online calculators you can use, but here is a good one from The Life Foundation:
Human Life Value Calculator
Try it out...find out how much insurance you need...then get a quote from www.beaconbeneficial.com
Please do this...visit www.beaconbeneficial.com
