Section 12.2 Key Concepts . You should consider these factors before you buy insurance Do You Need Life Insurance? If your death would cause financial stress for your spouse, children, parents, or anyone you want to protect, then you should consider purchasing life insurance Determining Your Life Insurance Objectives . Before you consider the types of life insurance policies, answer the following questions: How much money do you want to leave to your dependents? When would you like to be able to retire? How much will you be able to pay for your insurance program? Estimating Your Life Insurance Requirements . There are six general methods for determining the amount of insurance you might need The Multiple of Income Method is a mnge between five and eight times your income The Easy Method: A typical family will need approximately 70 percent of wage eamer's salary for seveti years before it adjusts to the financial consequences of wage eamer's death, The DINK Method: If you have no dependents and your spouse earns as much or more than you do, you have very simple insurance needs All you need to do is ensure that your spouse will not be unduly burdened by debts should you die Nonworking Spouse Method: To estimate how much life insurance a homemaker should carry, multiply the momber of years before the youngest child reaches age 18 by $10,000, The Family Need Method: The first three methods assume that you and your family are typical and ignore such factors as Social Security and rate of return on money that you may leave behind. There are numerous online calculators and apps that can now help you determine the amount of life insurance that you need for your situation 2321 Aalbocca ab cod AaBbci AaBbce AaB ABCD AOC Normal No Sox Heading Heading Tale Dr Pagraph th 1. Using Exhibit 12-2, determine the life expectancy of a 40-year-old male. Section 12.2 Key Concepts . You should consider these factors before you buy insurance Do You Need Life Insurance? If your death would cause financial stress for your spouse, children, parents, or anyone you want to protect, then you should consider purchasing life insurance Determining Your Life Insurance Objectives . Before you consider the types of life insurance policies, answer the following questions: How much money do you want to leave to your dependents? When would you like to be able to retire? How much will you be able to pay for your insurance program? Estimating Your Life Insurance Requirements . There are six general methods for determining the amount of insurance you might need The Multiple of Income Method is a mnge between five and eight times your income The Easy Method: A typical family will need approximately 70 percent of wage eamer's salary for seveti years before it adjusts to the financial consequences of wage eamer's death, The DINK Method: If you have no dependents and your spouse earns as much or more than you do, you have very simple insurance needs All you need to do is ensure that your spouse will not be unduly burdened by debts should you die Nonworking Spouse Method: To estimate how much life insurance a homemaker should carry, multiply the momber of years before the youngest child reaches age 18 by $10,000, The Family Need Method: The first three methods assume that you and your family are typical and ignore such factors as Social Security and rate of return on money that you may leave behind. There are numerous online calculators and apps that can now help you determine the amount of life insurance that you need for your situation 2321 Aalbocca ab cod AaBbci AaBbce AaB ABCD AOC Normal No Sox Heading Heading Tale Dr Pagraph th 1. Using Exhibit 12-2, determine the life expectancy of a 40-year-old male
