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LIFE POLICIES
Types
Term vs. Whole
Individual
Business
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LIFE POLICIES ~ INDIVIDUAL
Q. How do I determine the amount of life insurance that is needed for my spouse and me?
A.The first thing to determine is the amount of your outstanding monthly obligations, then you need to determine your future obligations such as college cost and taxes on retirement plans. In addition you need to look at inflation, your cost of living today will increase by 2 to 10 percent per year due to inflation. If you are spending $50,000 per year to live in 2003 dollars you will need more money to live 10, 20, 30 or 40 years from now. Typically people need 10 to 20 times their income in life insurance and other liquid assets. Most people are substantially underinsured based on their income and their consumption. It is good to run a human life value calculation to see what you are worth to your family in the event of your death. We can refer you to insurance specialists who can work with you to help you determine if you have the proper amounts of life insurance coverage.
Q. I have life insurance at work and have other policies, why should I review my life insurance?
A.You should review your insurance coverage every few years. Perhaps your income has increased or decreased. You may have more responsibilities such as new children, new marriage, a spouse may not be working any more, larger debt obligations.
The amount of coverage and the type of coverage may need to be changed or modified. You may be at the tail end of a 10 or 20-year term life insurance policy and the rates are ready to increase substantially.
Please email or call our life specialists at 866.475.DOVE(3683) for a no-cost, no obligation review of your current needs.
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