An annual review of any insurance policy is just responsible adulting. But, life moves fast and it doesn’t always happen. So, consider this your life insurance policy review reminder. Check your policy!
It’s easy to forget all of the changes throughout the year…move to a new home, get married (or divorced), have your first or fifth kid – life is constantly changing. So take 2 and get clear on life insurance policy review best practices.
Now, review your policy, make note of needed updates, then call us. We’re happy to update your information. I mean seriously, should your ex still be your beneficiary?
And if curosity is killing you, take our nifty calc for a spin and make sure you have enough 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.
Keep Reading and Learn How to Save Money for Life
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