As promised in my video yesterday, this form is helpful in calculating how much life insurance you need and what type you may need.
Loans (list out mortgage, auto loan, credit cards – amount of loan and time left to pay off):
Income (list out the amount of your income and how many years you’d want it replaced):
Final Expenses (average cost of a funeral is $25,000 – $30,0000, skip this step if you have prepaid your final expenses with a funeral home)
Education Expenses (If you have college expenses you would want paid for your children, list that cost here. How many years until they would be finished with all of their secondary education?)
Lastly, determine if you already have some life insurance plans in place. When determining the total amount of coverage you need, you’d want to factor out anything you already have in place. Next, determine the amount of permanent life insurance you would want in place for final expenses. If you have prepaid for funeral arrangements, you would not necessarily need a permanent life insurance plan. All the other categories could be covered with a term life insurance plan because they are temporary situations when you would need extra cash to help your family. For example, if you have a 30 year mortgage with a balance of $200,000, you would want to purchase a 30 year term policy with a face amount of $200,000.
If you have questions on this form, please do not hesitate to call or email!