Most people have no idea how much insurance they really need.

Since I have been in the financial advisory profession, there is one thing that common among many people…they don’t know how much life insurance they really need.

When purchasing life insurance, the question really isn’t how much you need, but how much capital your family will need at the time of your death, which depends on three variables:

1)    How much will be needed at death to meet immediate obligations?

This amount takes into account all final expenses: uncovered medical bills, funeral and estate-settling costs, outstanding debts, mortgage balance and college costs to name a few.

2)    How much future income is needed to sustain the household?

This is the number you’ll arrive at after calculating the “present value” of cash-flow streams your family will need after your death.

3) How much would you like to leave a seed for future generations?

Would you like to leave some funds for your kids to start a business, or send a kid to college at your Alma Mata?

I have found a wonderful resource from the people at Life Happens that will show you based upon the information you enter, what your life insurance needs really are.

If you have any questions about insurance or any financial matter, contact me and I will be sure you get your questions answered.

As always, I hope this helps and please share this FREE tool with those that you love and care for.