How to correctly calculate the life insurance benefit?
How to correctly calculate the life insurance benefit? Few people question the importance of taking out life insurance. It is a magnificent financial instrument to anticipate the economic needs that our loved ones may face with our death.
The most frequently asked question is how much is it necessary to insure?
Although there is no written formula tailored to all people and their circumstances, some experts recommend that the sum of 10 or 15 times our annual income should be insured.
Another idea is to focus on family debts. Both mortgage and student loans. In other words, if they owe $250,000 on a mortgage and $3,000 on a student loan, everything is added up, including interest, and the resulting figure would be the death benefit to be contracted.
There is another formula that emphasizes the replacement of our income. To do this, the amount of our annual income is calculated and multiplied by the working years that remain until retirement. The result gives an idea of how much money needs to be protected. How to correctly calculate the life insurance benefit?
Despite the different methods of calculating the death benefit, our advice is to sit down with a life insurance specialist from Univista Insurance and, between the two of you, find the ideal formula to protect your family, taking into account all your needs. specificities.