zTermLifeInsurance Blog
Thursday, July 29, 2010
- 08
Mar
2010 -
Be Calculative: How Much Term Insurance?
Filed Under: Blogging
Term life insurance is usually only a part of an individual’s life insurance mix. How much term life insurance is required by a person is answered by many questions, important among them being, “After my passing, how much money per year will my family need to maintain the same standard of living that they enjoy now?”
There are several online calculators that can help you figure out the amount of term insurance you will need. Online calculators usually take into account inflation, the interest rate, and your annual income, in addition to your spouse’s income, to arrive at the ideal term life insurance that you will require.
As a rough guideline, life insurance is suggested to be pegged at about ten times the annual income, although this amount can vary greatly depending on the other investment/insurance options, and outstanding mortgages/debts.
When it comes to expatriates, the calculation becomes a bit more complicated, as the salary may not be strictly proportional to the costs of living, and the expatriate may be able to save more than his/her colleague living in the United States. The problem is sometimes compounded by the fact that expatriates will find it difficult to get reliable life insurance. Special international term life plans such as IC+ Term Life Insurance can be just the solution.
