As you began life together and leave your single life behind you will be presented with some unique risk factors that should be reviewed for life insurance needs. As a person in usually good health, you should realize the future may bring added responsibilities and possible debt which the loss of income could develop a risk beyond your means to deal with. Since you are in usually good health 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 to cover debt responsiblities one may bring into the relationship or add during marriage. 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. The same activity should be completed for each spouse's risk responsibilities.
Lump Sum Monthly Sums
- The home mortgage amount _________________ _______________
- Auto loans _________________ _______________
- Student School loans _________________ _______________
- Needs for aging parents _________________ _______________
- Continuing Ed requirements _________________ _______________
- Credit Card Debt _________________ _______________
- Installment Debt _________________ _______________
- Personal loans unpaid _________________ _______________
- Business or hobby debt _________________ _______________
- 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.