The economic value of your life is not just how much you revenues you earn, but also your living cost, that is how much money you need to live comfortably. The cost in life of you and your family is actually the amount of life insurance income protection that you to purchase. Furthermore, most people tend to spend a little more their revenue, this is the reason why living cost must be carefully examined before purchasing the life insurance.
In addition, a portion of your cost of living are more than likely go into some form of savings, which is to pay college expenses when your children are old enough, for your retirement, to finance your a big vacation, and so forth. You want to ensure that your survivors would be able to cover essential expenses (college expenses, for example). But clearly, saving for your retirement really not something that you have to feel concerned if you die.
When calculating your living cost, do note the rate of inflation and additional expenses that may appear. Living cost may also include debt that must be paid monthly, so make sure that your life insurance amount also able to cover monthly debt payment for your survivor, if you die in a productive age. This way, your survivors do not have to put extra expenses to pay for family debt.
In addition, a portion of your cost of living are more than likely go into some form of savings, which is to pay college expenses when your children are old enough, for your retirement, to finance your a big vacation, and so forth. You want to ensure that your survivors would be able to cover essential expenses (college expenses, for example). But clearly, saving for your retirement really not something that you have to feel concerned if you die.
When calculating your living cost, do note the rate of inflation and additional expenses that may appear. Living cost may also include debt that must be paid monthly, so make sure that your life insurance amount also able to cover monthly debt payment for your survivor, if you die in a productive age. This way, your survivors do not have to put extra expenses to pay for family debt.
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