Finding Answers To Tough Life Insurance Questions
Everyone would like to be a millionaire and over a lifetime most people will probably earn in excess of a $1,000,000.
For example, someone making $5,000 a month or $60,000 annually will earn $1,200,000 over the next 20 years.
How do you keep it? And what happens to your family if something happens to you?
Having a sufficient amount of life insurance in force is a practical solution.
But how much insurance should you have?
One approach is to buy enough coverage to create an investment that will pay your beneficiaries a monthly income comparable to your present income level for a certain period of time. The table below lists examples of monthly income streams generated from different face amounts of life insurance.
Amount of Life Insurance1 |
Length
Of Time |
$250,000 |
$500,000 |
$1,000,000 |
$2,000,000 |
Provides This Monthly Income For Your Family |
10 Years |
$2,393 |
$4,787 |
$9,575 |
$19,150 |
20 Years |
$1,367 |
$2,735 |
$5,470 |
$10,940 |
30 Years |
$1,034 |
$2,069 |
$4,138 |
$8,277 |
1 Numbers have been rounded, are expressed in Today’s dollars, and do not take taxation into consideration. Calculations assume an annual 3% increase in the cost of living, a 6% annual investment rate, and no remaining balance at the end of the period indicated.
Each individual’s life insurance needs vary.
In addition to income replacement, other factors, including final expenses, mortgages, and college education for children, should be considered when designing a plan. Life insurance agents are trained to assist you in designing a plan tailored to your needs.
AAA Insurance Agency is a full service personal lines insurance brokerage. For more information about life insurance products call 800-333-4242
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