Calculate Your Life Insurance Needs Quickly
UPDATE 5/9/2012 - We've come across a few other sites that offer valuable tools to calculating how much life insurance you really need given your particular situation. Your needs will vary based on how big your family is, your income, how old you are and how much debt you have. Some sites that offer help in calculating life insurance include LifeHappens.org, BankRate.com, SmartMoney.com and Finaid.org. Check out one of these sites or meet with a financial advisor to go over your financial records. And remember, you can receive no obligation quotes right here at LifeInsurance.org.
Minnesota Life Insurance Company has a handy tool available on their website to help you determine your life insurance needs. This can come in very handy since many families are unsure how much coverage is really necessary if they were to lose income. There is some information you should have handy before using the calculator to help make your overall experience effective.
Some of the questions you will be asked when using the online calculator is your current age, at which age you'd like to retire, and current yearly income. You'll also want the most up to date balance on your mortgage. Survivors may choose to pay off the mortgage in one lump sum or they can set a portion aside to take advantage of mortgage interest tax savings. Get all of the latest information on credit card balances, car loans, student loans and any other unsecured lines of credits you may have. Life insurance can help survivors become debt free which can be a huge relief during such a stressful time. In addition to this information, determine how much is needed for an emergency fund which typically should be three to six months worth of income.
Assets need to be considered as well as debt when determining how much life insurance coverage your family needs. You'll want to have balances for all savings and checking accounts you have. You'll be asked to include approximate values for all stocks, bonds, land, mutual funds, vehicles and other property. They'll also want a list of all retirement plans including 401k plans, profit-sharing plans, or stock options. Also, check with your employer to see if you have any life insurance offered through their benefits package. Many employers offer life insurance, but not enough to cover all of the needs associated with loss of life.
Once you have obtained all of this information you are on your way to successfully using Minnesota Life's online calculator tool. This is an easy and effective way to determine your true needs without over paying or not having enough coverage. It will give you the peace of mind that you are adequately covering your family without wasting money.