Face The World

1. 
   selena gomez said:
   February 1st, 2010 on 1:04 am

   Best Answer – Chosen by Voters The rule of thumb for life insurance is to buy 7-10 times your annual income so the proceeds could be invested and the beneficiary replace your income with invested returns.However, the most accurate way to find out how much life insurance you need is to use a life insurance coverage calculator. You can find one at http://www.term-life-online.com You answer some questions and get an instant estimate of how much life insurance you need based on your specific personal situation.Term life may be a good idea because it offers you the most coverage at the lowest price for your age.Term life insurance is temporary coverage for 1-30 years. Most policies are issued for 10, 15, 20, or 30 years of term life insurance.Many people with a young family, or a home mortgage choose 30 year level term life insurance because it provides coverage and rates that remain the same each year for 30 years. So they have coverage until the mortgage is paid, and the kids are out of college.A study performed in 2007 by the Insurance Information Institute stated that term life insurance rates have decreased by 50% over the past dozen years. So term life insurance may be affordable for you.I hope that helps. Best of luck to you.

2. 
   Vanessa Hudgens said:
   February 1st, 2010 on 1:04 am

   I would get 20 year term to cover the payoff of a mortgage, or until your child gets through college. The amount depends on what expenses your wife and child would need to cover if you were gone. For example, if you are the primary wage earner in your house, and you contribute $4,000 a month toward expenses, then you would want a lump sum that could generate $4,000 a month in earnings. That is approximately $1 million in policy value. If your wife has a job and could cover the household expenses on her own, then you would need less. The basic rule of thumb is to take the policy face value, multiply it by 4%, and that is the income that it can generate per year. Divide that by 12 for the monthly income.

3. 
   taylor swift said:
   February 1st, 2010 on 1:04 am

   The amount you need is directly related to what would happen financially to the people who depend on you financially. It’s usually more than the 8x or 10x mentioned by another answer. Here’s an interesting way to calculate it: 1. How much income would be needed by those who depend on you financially 2. What interest rate could they earn safely over time 3. How much liquid cash or stocks do you have. Then take the annual income divided by the interest rate minus any liquid assets. Here’s an example: $50,000 income, 5% interest, $50,000 cash in the bank. Answer is $1,000,000 minus $50,000 or $950,000 of insurance. Working it backwards, 5% times $1 million = $50,000!. Hope this answer helps, let me know if you need any more details.

4. 
   justin bieber said:
   February 1st, 2010 on 1:04 am

   I straight up believe in term, so good job on that choice. Don't ever get talked into anything but term.*I tell all my clients 8-10 times what you bring home.*Are you a homeowner? (30 year term) will be best for you!Ummm…my wife and I got a 35 year term with Primerica. We just bought a house and its not that much more than a 30 year.*Other wise go with a 20 yr, until your kids are old enough.Good luck! Source(s): Licensed Agent

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