Podcasts Business Investing Radical Personal Finance 178-How Much Life Insurance Do I Need? A Simple Tutorial On How To Calculate A Life Insurance Needs Analysis For Yourself

178-How Much Life Insurance Do I Need? A Simple Tutorial On How To Calculate A Life Insurance Needs Analysis For Yourself

Published: April 8, 2015, 8:54 p.m.

Today's show gives you the tools you need to sit down and calculate an appropriate amount of life insurance coverage for you to own.

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On Episode 173, I discussed the three primary ways of calculating an appropriate amount of insurance:

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  1. Human Life Value approach
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  2. Needs Analysis approach (the best)
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  3. Rule of Thumb approach
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This show teaches you how to calculate a Needs Analysis.

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The process is simple:

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What You Want - What You've Got = What You Need

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In order to figure out what you want, simply make a list of everything you want for your family in case of your death.

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Divide that list into:

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  1. Lump Sum needs (immediate cash)
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  2. Income needs (ongoing cash)
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For the income needs, decide:

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  1. How much?
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  2. For how long?
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  3. Liquidating approach or a non-liquidating approach?
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Enjoy the show!

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Joshua

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