[tweet_dis_img] \u00a0Example:<\/strong><\/span><\/p>\n A family with two young children under the age of 10, may look like the below. However, given the young age of their children, Brenda and Jack may consider more years of income replacement.<\/p>\n Brenda\u2019s income: $86,000 gross<\/p>\n Jack\u2019s income: \u00a0$84,000 gross<\/p>\n Current mortgage: \u00a0$350,000<\/p>\n Line of Credit: $75,000<\/p>\n Credit Cards: $0<\/p>\n Outstanding Student Loans: $11,000<\/p>\n Coverage Through Work: (2x salary)<\/p>\n Individual Life Insurance Need:<\/strong><\/span><\/p>\n [tweet_box design=”default” excerpt=”How to calculate basic\u00a0life insurance need”]Liabilities (mortgage, outstanding lines of credit, debts, etc.) – Existing Coverage + Income Replacement x 10 years[\/tweet_box]<\/p>\n Brenda:<\/em><\/p>\n Jack:<\/em><\/p>\n What do these numbers actually mean? Is it truly this simple? All you have to do is insure yourself and your spouse based on such calculation? Before jumping the gun, \u00a0answer the following questions:<\/p>\n In the event something happens to you and\/or your significant other:<\/p>\n Answering these questions frankly will allow you to dig deeper into how to calculate your basic life insurance need and understand how much is required to support your family, if anything happens.<\/p>\n Cash Flow:<\/strong><\/span><\/p>\n Although, every person and family situation is different, at the end of the day, [tweet_dis excerpt=”#Lifeinsurance amount depends on your existing cash flow. Learn how to calculate how much you need”]the amount of life insurance depends on the existing cash flow of the family[\/tweet_dis]. Having some insurance is better than no insurance.\u00a0Typically, using pre-tax as the difference in cost of insurance is very small and the benefit much larger, especially for younger people.<\/p>\n You’re Healthy Now?<\/strong><\/span><\/p>\n Keep in mind that today, you\u2019re most likely insurable (given you lead a healthy lifestyle). While tomorrow, you can\u2019t be sure of that. [tweet_dis excerpt=”Will you be insurance tomorrow? Maybe, maybe not. Calculate how much #lifeinsurance is enough today”]Your age, health and lifestyle will determine your insurability and ultimately the cost of insurance[\/tweet_dis].<\/p>\n Stay at Home Spouse:<\/span><\/strong><\/p>\n Also, if your spouse does not work, that doesn’t mean life insurance is not needed. \u00a0It is even more important! \u00a0In the unfortunate event if\u00a0something happens to your stay-at-home spouse and if you\u2019d like to continue working “at the same pace”, you\u2019ll likely have to organize and hire people to do everything your spouse does.<\/p>\n Life insurance will not bring the person back, however, it will give the surviving members of the family options avoiding the need to make rushed decisions such as getting “any job” or having to sell the house because the surviving spouse is not able to carry the costs of the house alone.<\/p>\n One of Those Things You Never Want to Collect:<\/span><\/strong><\/p>\n The concept of life insurance is “one of those things you never want to collect” but please consider that if for any unfortunate event\/accident both parents passed away in an accident (and it happens), ensure that whomever takes on your children, doesn\u2019t regrets having accepted them because of financial hardship imposed on such person due to the lack of proper funding of your guardianship wishes.<\/p>\n Tie Loose Ends:<\/span><\/strong><\/p>\n Lastly, tie every loose end with a will duly drafted by a lawyer\u00a0(please, no will kits!).<\/p>\n Truth is, basic life insurance need\u00a0varies greatly depending on many factors and for such reason, consider speaking with an insurance professional but we\u2019ll review a few basics for you to start thinking about. For individuals, a good rule of thumb for to calculate basic life insurance need is: [tweet_dis_img][\/tweet_dis_img] \u00a0Example: A family with two young […]<\/p>\n","protected":false},"author":3,"featured_media":45,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,5,11],"tags":[7,8],"_links":{"self":[{"href":"https:\/\/www.rubachwealth.com\/wp-json\/wp\/v2\/posts\/43"}],"collection":[{"href":"https:\/\/www.rubachwealth.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rubachwealth.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rubachwealth.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rubachwealth.com\/wp-json\/wp\/v2\/comments?post=43"}],"version-history":[{"count":0,"href":"https:\/\/www.rubachwealth.com\/wp-json\/wp\/v2\/posts\/43\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.rubachwealth.com\/wp-json\/wp\/v2\/media\/45"}],"wp:attachment":[{"href":"https:\/\/www.rubachwealth.com\/wp-json\/wp\/v2\/media?parent=43"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rubachwealth.com\/wp-json\/wp\/v2\/categories?post=43"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rubachwealth.com\/wp-json\/wp\/v2\/tags?post=43"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"calculate](\"https:\/\/www.rubachwealth.com\/wp-content\/uploads\/2022\/02\/insurance-need-2.jpg\")
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To look at your current insurance needs and financial security plans, please contact me<\/a>.<\/h4>\n","protected":false},"excerpt":{"rendered":"