Comments on: How Much Life Insurance Do I Need?

By: » The Best Term Life Insurance For My Situation

» The Best Term Life Insurance For My Situation — Fri, 26 Feb 2010 16:59:33 +0000

[...] decided on a policy and passed your medical exam with flying colors, you’ll need to decide how much insurance you want to buy. So how do you determine how much insurance you [...]

By: 101 Ways to Cut Your Spending This Year

101 Ways to Cut Your Spending This Year — Wed, 06 Jan 2010 11:03:40 +0000

[...] Review your insurance policies annually, to make sure they meet your needs. If you overbuy, you lose money every month on [...]

By: Joshua Schneiderman

Joshua Schneiderman — Thu, 02 Jul 2009 19:15:03 +0000

As an agent, I have some slightly different opinions regarding life insurance. I believe in income replacement, or in the case of a career homemaker, securing the money that would be required to replace those services. I would add onto that final expenses. Beyond that, you are probably covering the same need twice since whatever expense you throw in there would otherwise probably have been paid by the income you already replaced. Term life for a younger healthier person is very affordable because the company is counting on you outliving the term. Upon expiration, it becomes much more expensive because you are 10, 20 maybe 30 years older. Whole life doesn’t expire. As long as you keep up on the level premium, someone will hand your spouse, children or whoever your beneficiary is the money they need to replace the financial loss.

Thank you.

By: Denise

Denise — Thu, 16 Apr 2009 07:05:53 +0000

Another myth that is propagated against taking out a life insurance policy is that if you are not working you do not need insurance. Many stay-at-home parents think life insurance is not needed as there is no salary to replace. I would urge you then to calculate the cost of childcare, housekeeping, cooking, and transportation and you will have a clearer picture of how much a non-working spouse contributes to an average household budget. You do the numbers for yourself and figure out how much these services would cost your family if they were outsourced. You can then use this amount to calculate the applicable life insurance coverage needed. It is imperative for everyone at home to have a life insurance policy and avoid any unnecessary problems and to plan for a secure future.

By: Chris Huntley

Chris Huntley — Tue, 03 Mar 2009 18:13:33 +0000

Hi Pinyo,
I wish everyone in the market for life insurance was as analytical as you. In a perfect world, everyone should consider all the factors your agent went over with you to come to the amount you need. I’m an agent as well, and I’ll tell you that you are among the few who would take the time and energy to fill out his worksheet. 90% of the life insurance I sell is simply using an income replacement model. No one gets rich here… just leaves enough to have his/her income replaced for x amount of years, with a few additional factors such as inflation and interest.

I don’t follow your agent’s approach because it’s not best for my prospects. Let’s be clear. What’s best for my prospect is that they buy life insurance, even if the face value is not calculated using an in depth worksheet. If the worksheet is too much for them, then it’s not the right thing for them, because they’re gonna walk away without insurance. Anyway, for your visitors who might want a simpler approach to buying life insurance, I’ve written an article recently titled “How Much Life Insurance do I need to Cover my Mortgage“.

By: Moolanomy- An Interview With a Personal Finance Blogger | Good Financial Cents

Tue, 06 Jan 2009 04:15:41 +0000

[...] How Much Life Insurance Do I Need [...]

By: reminder about organ donation | plonkee money

reminder about organ donation | plonkee money — Mon, 14 Apr 2008 11:27:00 +0000

[...] we’re on the subject of death, don’t forget that you should have a will, and sufficient life insurance. If you like what you’re reading, why not leave a comment below, subscribe to my feed, or check [...]

By: LSM Team

LSM Team — Mon, 31 Mar 2008 09:25:28 +0000

Good info. Considering whole life vs. term life insurance is very important and let's say "popular" today. We have some interesting tips about this topic on our term life insurance website. I think if you don't want to feel bounded by your insurance decision, is good to choose term life (and we advice many our clients to do so), on the other hand nothing is perfect. But if you make good mixture of life, long care and disability insurance, you can have really "heavy" protection for reasonable price.

By: Carnival of Personal Finance #142 - The Homeless Edition — The Baglady

Carnival of Personal Finance #142 - The Homeless Edition — The Baglady — Mon, 03 Mar 2008 07:55:18 +0000

[...] Pinyo from Moolanomy gives us an excellent worksheet about life insurance in Life Insurance Part 1: How Much Life Insurance Do I Need? [...]

By: WealthBoy

WealthBoy — Sun, 02 Mar 2008 00:55:38 +0000

As far as whole life goes, yeah it’s not a very good product. You’d do much better to just buy term and invest the rest yourself. It gives you much more control over the investment options, and ultimately a much better ROI if you’re investing for the long term.