Basic Facts of Life Insurance

Thinking of a future without ourselves in it, is not the most pleasant of thoughts. . .however, it is necessary to do so for the financial security of your family. Life insurance may provide you with the opportunity to bequeath money to your survivors, while at the same time, provide the necessary liquidity to help pay estate taxes. This, in turn, may allow your assets to pass undiminished to your heirs. As a general rule of thumb when purchasing life insurance, it is usually thought that you would need eight to ten times your salary in order to take care of your family’s needs. A more accurate formula may be as follows: Determine the amount needed to help meet specific needs such as providing funds for college, paying off your mortgage, or giving money to an heir. Label this figure as [A]. Determine the amount necessary for the support of …

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