Whole Life Insurance – How Much Do You Need?
Why would you want whole life insurance? How much do you need? How do you calculate the proper amount? Read on and I’ll address these questions…
The advantage of whole life insurance is that the death benefit will be paid to the beneficiaries whether you die in the 1st year or after age 100, assuming the policy remains in force either by ongoing premium payments or having the policy become paid up.
One way to determine the amount of whole life insurance you need is by providing a replacement of your current salary for a number of years. An alternative to salary replacement is to consider your monthly expenses such as; utilities, school, taxes, auto, etc. for a specific period of time. You may want to have adequate whole life insurance to pay off debts such as; mortgage balance, credit card balances, student loans, personal loans or any other debts.
The PivotCare Assess Needs Calculator allows you to combine the above items to determine a total amount of whole life insurance you would like to have for your family’s financial security. You may also select an individual need you would like to cover with life insurance.
The amount of whole life insurance you need will require a premium based on the face amount at the age it is purchased. Premiums for whole life insurance are lower when purchased at younger ages and the cash value of the whole life policy will provide additional benefits to the insured. Whole life insurance cash values can be borrowed or used to provide a retirement supplement to the policyholder. Whole life can be an ideal product for needs such as funeral expenses or final expenses.
About the author: Ken Buccico holds a LUTC designation and has been in the life insurance business for 39 years. His wealth of experience empowers clients to make best possible decision regarding a life insurance policy. To explore the best life insurance option, contact Ken at 1-800-651-1953 or KBuccico@Pivot.com.