Life Insurance Calculator From Minnesota Life
Minnesota Life offers a valuable calculator on their website to help consumers determine their true life insurance needs. Consumers are often confused if they amount of life insurance they purchase is too much or too little. With a calculator at your fingertips from a reputable insurer, you can get a good idea of what your needs really entail.
They will request some general information from you, including your current age and the age at which you'd like to retire. It then will ask for your current annual income rounded to the nearest thousand. They will need some detailed information on your debts and current expenses so it's important to have that handy. They'll want to know what the remaining balance is on your mortgage as an example because beneficiaries may want to pay this off in one lump sum. You should also include all credit cards, car loans, student loans, and other lines of credit to ensure beneficiaries can pay off all of your debt. Keeping an emergency fund of at least six months worth of income is also a good idea.
In addition to expenses, the calculator will need to factor in your assets. This will include approximate balances for checking, savings, non-retirement investments, stocks, bonds, mutual funds, land, property, and cars. You'll want to include a list of all of your retirement accounts including 401k's and stock options. Another key component will be existing life insurance policies that may be old or offered through your employer. Be sure to add those into the calculator as well. In a very quick period of time, the calculator on Minnesota Life Insurance Company's website can give you a reliable estimate on the amount of life insurance that may suit your needs the best.