Top 4 Tips For Evaluating Life Insurance

Life insurance replaces your income in case of an early demise. It provides protection to a spouse, children, or other dependents. Often it is challenging determining how much life insurance is sufficient for your unique needs. Here are four tips to help you overcome this challenge:

 

Tip #1: Forecast Your Critical Needs

Your TSP Withdrawal expert is available to help you plan for your future.

Advertisement

 

You can do so by reflecting on the following questions: Are your kids currently attending college or will they do so in the future?  If you answer yes, you need to assess how much that is likely to cost as well as create a payment plan.

 

Tip # 2: Alternative Income Stream

 

Though specific circumstances vary, identifying a source of alternative income is important. Typically, families find it necessary replacing 60% of its gross revenue. For example, replacing$75,000 requires an income stream of $45,000 per year.

 

Tip # 3: Leverage Shortfalls

 

Assume that your dependents require $45,000 to replace your income. With returns pegged at 5%, your life insurance plan amounts to $900,000 after 20 years. Even so, this figure doesn’t include college or medical expenses.

 

Tip # 4: Evaluate Your Current Assets

 

Knowing your dependents needs helps in assessing your current savings plan. Let’s say their needs amount to $1 million and you presently have $350,000 in assets, you need to raise $650,000 through savings.

 

Related Posts

Interest rates rise; time to protect retirement savings accounts

The Federal Reserve has always been an active action taker when it comes to the decisions regarding taxation and interest rate definition and they have recently decided to raise the interest rates even further for all the long-term investments and the retirements savings are also encompassed for this raise. Interest rates rise; protect your retirements

...Read More

minimum wage

Increasing Social Security Payouts by $30,000

Here all pros and cons of a social security fix suggested by TSCL are analyzed. The fix could increase social security benefits of COLA receivers.

...Read More

tsp funds

Retirement tips for people of all ages

Following are some retirement tips available for people of all ages:

...Read More