Life insurance needs typically do what over your lifetime?

Answer 1

I don't understand the question but will try to help. Life Insurance is typically purchased to cover those left behind by your death. (Spouses, children, family...etc). It also can be purchased to simply bury you without your family having that financial burden.

To calculate what one typically needs, a financial needs analysis is usually done. For example (very rough/simple version): $100,000 to pay off the mortgage for my wife, $100,000 for my child's college education needs (4 year old), another $100,000 to cover day care costs if I die now and my wife has to go back to work, $500,000 to cover ten times your salary is you're making $50k per year, $25,000 to bury you and a nice plot/headstone...etc, $50,000 to payoff debt that you leave behind for your wife...etc...

You can then see a 1 child family would have a possible need for $925,000 if you died right now. Of course, there are SO many things to either add or subtract depending on your desires, but your question has to be: What would my family need to keep going without damaging their lifestyle and/or covering your lost income (now that you're dead and can;t make more money over the lost years).

fortunately term insurance can be pretty cheap and last up to 30 years. Permanent insurance options are more expensive so it's better to lock into that policy in younger years when your age is younger. No matter what, I believe everyone should get life insurance as soon as they can afford it and make plans along the way to change it or add to it as needed.

Hope this helps...