Realizing the full scope of your value of human life

Realizing the full scope of your value of human life -


To determine the amount of life insurance you need, an important consideration to keep in mind is that is called your "value of human life." This is essentially your financial value to those you love. While you can never, of course, put a financial number on your true value to your family, you can calculate what your future financial contributions to your family will be.
Knowing your value of human life is important when buying life insurance because you want to have a clear idea of ​​what will be needed your family when you are gone and, as such, are not able to contribute financially to the household. the calculation is based on a number of factors, including your occupation, income, benefits you get from your employer, etc. (for details on the data used, visit value Calculator human life of the lIFE Foundation.)

L age is also a critical factor in determining the value of your human life. Compare two scenarios. A 45-year-old man seeking coverage would have its income multiplied by 14-20 times in the determination of an amount of policy, while a 70 year old man would only income multiplied by 4-10. You see, life insurance is to essentially replace your support for a certain period of time, to take care of their relatives in need after your death.
And above all, you want to avoid being underinsured or your family may still be struggling financially after your death, even if you have a life insurance policy.
Neil Jesani CEO BeamaLife is a certified financial planner and was announced by consumers, "the American Research Council as one of the" Top Financial Planners of America. " He blogs about life insurance and other financial topics Personal Finance Principles.