How Much Life Insurance Do You Need??

People ask me this all the time…my Dad always said “buy what you need to buy and don’t buy what you don’t need.” OK, well, how do you figure that out?

I typically try and add up fixed monthly expenses and then, like a middle school word problem, back into the “right number”. In other words, how much would you need to have in order to invest and earn a modest 6% net return…enough to continue to fund the ongoing expenses in the event you or your loved one gets hit by the proverbial bus.

So, if we use 6% as our net investment return figure, $1,000,000 will generate $60,000 of net income year after year without using principle…is this enough???

It’s a good thing Term Life insurance is so cheap…for a male age 40, $1,000,000 fixed for 20 years should cost no more than $55/month.

Take a look at this link from Kiplinger’s to help as well!

http://partners.leadfusion.com/tools/kiplinger/lifeins01/tool.fcs

Call or email for discussion!

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