Life Insurance
When thinking about life insurance, think about your personal obligations.
Debt
- Your Home (Mortgage Balance)
- Student Loan Total Balance
- Credit Card Total Balance
- Total Additional Debts (car loans, other loans, etc)
Responsibilities
- Your Anuual Income
- Annual Private tuition for K-12 (if applicable)
- Annual College Tuition
Annual Heathcare Costs (premiums, co-insurance, prescriptions, etc)
Taxes
- State and/or Federal Tax Obligations
Business
- Business Owner Buy/Sell Obligations
Final Expenses
- Funeral/Burial Expense
Retirement Savings
- Total Retirement and Investment Account Balance
- Existing Death Benefit
Which option is most significant to you and your family if you die? Would you rather replace 20 years of your earnings or 10 years of your earnings?
Total Income Replacement for 20 years?
Total Income Replacement for 10 years?
Cash Value
What if I need to access cash now?
I may need cash for….
Credit Card balances have an immediate effect on your credit score.
SOURCE: https://www.thebalance.com/balance-affects-credit-score-960446
Unplanned Automobile repair
Something as simple as replacement of tires or brakes can be several thousand dollars.
SOURCE: https://www.midas.com/services/brakes/tabid/137/default.aspx
Job Transition
Do you have 3-6 months of income saved? Job trasitions can be costly?
SOURCE: https://www.moneyunder30.com/budget-between-jobs
Return of Premium
How can I get my money back if I no longer need the coverage?
Payoff your home
Payoff Student Loans
Invest Towards Retirement
SOURCE: http://www.aon.com/attachments/human-capital-consulting/2014_Benefits_Quarterly_Q2.pdf
Living Benefits
How will I cover care needs if I suffer a Chronic Illness such as a heart attack or stroke?
Nursing Home Costs
$7,000-$10,000 per month
SOURCE: http://alifeathomehhc.com/nursing-homes/
Rehabiliation Costs
$18,000 per year for Stroke Rehabilitation
SOURCE: https://www.ncbi.nlm.nih.gov/pubmed/22120036
Special Dietary Needs
Bottom line, healthly food costs more!
SOURCE: http://bmjopen.bmj.com/content/3/12/e004277.full?sid=820d6e1a-280e-47a6-b8c5-498bfa4657e3
Retirement Income
What will I do to supplement my retirement income if my retirement expenses increase over time?
Increased Healthcare Costs
According to Fidelity Investments, individuals over 80 can expect at least 18% of their household spending to be attributed to heathcare costs.
Inflation
3%? How much will your dollar be worth in 25+ years?
SOURCE: http://www.usinflationcalculator.com/inflation/current-inflation-rates/
Loss of Spouse retirement income
Expenses do not necessarily change dramatically with loss of a spouse. Maintaining your lifestyle and increasing healthcare expenses could be challenging.