|
How To Compute Your Life Insurance
Step-By-Step Internet Marketing Training
Great Internet Business Program that includes MENTORING so that you can also achieve your goal of making money on the internet! Click here now to Internet Business Program
|
|
Note: Simply replace the figures, in the table below, to suit your situation.
EIGHT STEPS TO KNOW
YOUR LIFE INSURANCE NEEDS |
| 1. TOTAL
Annual Family Income (Include all sources) |
P1,000,000 |
| 2.
MULTIPLY BY % of Annual Family Income Needed to maintain current standard of living (70% with children, 60% without) = P700,000 |
X70% |
| 3.
SUBTRACT Annual Income Available to your Family after your death = P252,000
Spouse’s Income, if any = P400,000
Annual SSS benefit (social security) = P48,000
Other sources, if any = 0 |
P252,000 |
| 4. DIVIDE
the sub-total from Step 3 by a reasonable interest rate (rate of return) that could be achieved (P252,000 divided by 8% (.08) equals P3,150,000) |
8% |
| 5. ADD
final expenses (funeral, medical, taxes, etc.) |
Plus
P80,000 |
| 6. ADD
outstanding debt (mortgage & auto loans etc.) |
Plus
P60,000 |
| 7.
ADDITIONAL funding needs (educational funds, emergency funds etc.) |
Plus
P500,000 |
| 8.
SUBTRACT existing life insurance and cash savings |
Minus
P1,200,000 |
|
APPROXIMATE additional life insurance needed |
P2,590,000
|
Visit Money Management
|