What you’re worth to your family
Bates says his company looks at your lifetime economic value to help you determine the amount of life insurance to buy. The formula is based on your answers to these questions:
- How old are you?
- How much do you earn before taxes?
- What’s the annual value of the things you do for your family, such as chauffeuring kids, cutting the lawn, or whatever your survivors would have to pay else someone to do?
- How much do you pay in taxes?
- How much do you receive in employee benefits, such as health insurance and contributions to retirement savings?
- At what age do you plan to retire?
- How much do your beneficiaries need for personal necessities such as food, clothing and transportation?
How to Do a ‘Needs Analysis’ Before you Buy Life Insurance |