Over the past 25 years or so there’s been an emergence of a new secondary market for existing life insurance policies. Some people, under certain circumstances, are actually able to sell their life insurance policies to people or companies willing to buy them, essentially as investments. The practice is offensive and you should know that the people involved with life settlements are basically gambling on life and death. Your life and death.
And yes, it’s as creepy as it sounds. So, take a couple minutes and listen to Byron explain why life settlements are a bad idea.
Now that you’re clear on the facts about life settlements, take our calculator for a spin and make sure you’ve got the proper amount of coverage.
Nifty Life Insurance Calculator
Our Life Insurance Calculator can help you get a rough idea of how much coverage you’ll need to make sure your family is okay financially when you die.
Annual income before tax: $Annual income is an important factor in determining your needs, but it’s not the only one. When you die, your life insurance is like your final paycheck.
% of income needed by dependents: %Because you’ll be gone, presumably they won’t need as much as you’re currently earning. Typically, 80% of your current income is a good place to start.
Your Age: yearsThe younger you are, the more years of your income your family stands to lose when you die.
Number of years benefits are needed:If you died tomorrow, how many years of income do you want to provide for your family?
Annual inflation rate (estimate): %Because of inflation, in order to maintain your family’s current standard of living, you’ll need to plan for increases in their annual income to keep pace. Historically, inflation has averaged between 2% and 4%.
Annual interest rate (estimate): %This is an assumption as to how much you believe your spouse will be able to earn on the death benefit proceeds. We have found that most surviving spouses are usually very conservative in how they invest the death benefit. The most common thing we see is that the money gets deposited into a bank account. You know your spouse better than anyone. Pick a number that you feel your spouse will be able to comfortably earn on the proceeds.
So what’s next? Call us at 877-794-9817 and let’s chat about the types of coverage that may make the most sense for you.
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