The ending of a relatioship whether from death or divorce one is presented with some very unique risk factors that should be reviewed for life insurance needs. It is critical that you review where you are financailly and the responsibilities you are to be left with. You should realize there is a good possibility that the future may bring added responsibilities and possible debt that a loss of income could develop a risk beyond your means to deal with. Since your current age will increase there should be consideration given for the fact that rates should be much less then waiting for an older age or when your health may change causing added premium or possible declines. For some they do not want to leave financial burdens for others to deal with after they are gone, whether debt, business responsiblities, or other responsiblities. Life insurance can help with the replacement of that lost income or cover debt responsiblities. Life insurance is a contract for a future delivery of funds to meet a possible future risk that you feel is beyond the scope of your resources to properly deal with. It has often been said that those depended on you may pay many times more for the cost of caring for their financial needs should they be left behind after your death to face those financial needs alone. For most the cost of proper life insurance would be far less costly.
Lump Sums Monthly Needs
- The home mortgage amount _________________ _______________
- Auto loans _________________ _______________
- Student School loans _________________ _______________
- Needs for aging parents _________________ _______________
- Special needs child _________________ _______________
- Continuing Ed requirements _________________ _______________
- Credit Card Debt _________________ _______________
- Installment Debt _________________ ________________
- Children's College debts or saving for _________________ ________________
- Personal loans unpaid _________________ ________________
- Business or hobby debt _________________ ________________
- Medical debt fund, funds to cover ded, co-insurance, and missing coverages_________________ ________________
- Tax benefit loss _________________ ________________
- Subtract any currently owned life insurance _________________ ________________
- Employer provided life insurance is not always there, since people today change jobs often, and employers change benefits; thus, this should not be included as part of the family protection coverage.
- Funds to cover possible estate taxes _________________ ________________
- For business owners funds to cover business continuation options _________________ ________________
Total Risk needs to fund _________________ ________________
For Item 13, we usually ask for twice the take-home pay of the possible person lost. The total of these items should give them the amount necessary to cover the risks at any given time. Since people may change their marital staus, lifestyle, the economy may change as may other things may, it is neccessary to review the above needs and the life insurance purchased for meeting those intended risks, to keep the protection on track.