Comments on: Determining Life Insurance Needs the Easy Way http://allfinancialmatters.com/2005/12/21/determining-life-insurance-needs-the-easy-way/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 21 Nov 2009 13:00:57 -0800 http://wordpress.org/?v=abc hourly 1 By: Term Life Insurance Calculator http://allfinancialmatters.com/2005/12/21/determining-life-insurance-needs-the-easy-way/comment-page-1/#comment-325961 Term Life Insurance Calculator Wed, 25 Jun 2008 19:08:20 +0000 http://www.allthingsfinancialblog.com/?p=243#comment-325961 I find it easier and more accurate to use one of those free tools online called a life insurance needs calculator that does all the figuring for you, after you answer some financial questions. I find it easier and more accurate to use one of those free tools online called a life insurance needs calculator that does all the figuring for you, after you answer some financial questions.

]]> By: Denise Mancini-Blonda http://allfinancialmatters.com/2005/12/21/determining-life-insurance-needs-the-easy-way/comment-page-1/#comment-259214 Denise Mancini-Blonda Tue, 25 Mar 2008 20:14:04 +0000 http://www.allthingsfinancialblog.com/?p=243#comment-259214 I would argue that it shouldn't matter whether you are in a high income or low income family. If the breadwinner dies, no matter how much he/she makes, his/her income needs to be replaced. The way you should think about it is if I'm 30, I'd probably work at least 20 more years...how much would I make throughout my lifetime. That's closer to the number that you need. I would argue that it shouldn’t matter whether you are in a high income or low income family. If the breadwinner dies, no matter how much he/she makes, his/her income needs to be replaced. The way you should think about it is if I’m 30, I’d probably work at least 20 more years…how much would I make throughout my lifetime. That’s closer to the number that you need.

]]> By: JLP http://allfinancialmatters.com/2005/12/21/determining-life-insurance-needs-the-easy-way/comment-page-1/#comment-839 JLP Wed, 21 Dec 2005 16:57:54 +0000 http://www.allthingsfinancialblog.com/?p=243#comment-839 One advantage to doing it based on income is that if you are only living on 75% of your income, you are most likely saving the other 25%. Therefore, it might be wise to factor in savings in case you die prematurely. One advantage to doing it based on income is that if you are only living on 75% of your income, you are most likely saving the other 25%. Therefore, it might be wise to factor in savings in case you die prematurely.

]]> By: FMF http://allfinancialmatters.com/2005/12/21/determining-life-insurance-needs-the-easy-way/comment-page-1/#comment-838 FMF Wed, 21 Dec 2005 16:40:07 +0000 http://www.allthingsfinancialblog.com/?p=243#comment-838 Do you think this formula is correct? Shouldn't it be 8-10 times EXPENSES? For instance, we live on about 75% of our income -- using the rest for savings and giving. Insurance is meant to cover the 75% my family would need, correct? So shouldn't it be based on expenses rather than income. Then again, if you assume income = expenses (which it does for most people), the formula would work as is. Any preliminary comments on the book or will you do a review later? I'll be reviewing it as well, so I'm sure I'll like it if you hate it and vice versa. ;-) Do you think this formula is correct? Shouldn’t it be 8-10 times EXPENSES? For instance, we live on about 75% of our income — using the rest for savings and giving. Insurance is meant to cover the 75% my family would need, correct? So shouldn’t it be based on expenses rather than income.

Then again, if you assume income = expenses (which it does for most people), the formula would work as is.

Any preliminary comments on the book or will you do a review later? I’ll be reviewing it as well, so I’m sure I’ll like it if you hate it and vice versa. ;-)

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