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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.
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I’m over 65 and I no longer need or want my life
insurance policy. The policy’s death value is $250,000 or greater, and I would like to
see how much is it worth to me as a senior settlement,