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

April 08, 2015, 8:54 pm • 45m

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. On Episode 173, I discussed the three primary ways of calculating an appropriate amount of insurance: Human Life Value approach Needs Analysis approach (the best) Rule of Thumb approach This show teaches you how to calculate a Needs Analysis. The process is simple: What You Want - What You've Got = What You Need In order to figure out what you want, simply make a list of everything you want for your family in case of your death. Divide that list into: Lump Sum needs (immediate cash) Income needs (ongoing cash) For the income needs, decide: How much? For how long? Liquidating approach or a non-liquidating approach? Enjoy the show! Joshua Links:  Episode 173: http://radicalpersonalfinance.com/173-economic-basis-of-life-insurance-and-individualfamily-uses-of-life-insurance/ Episode 101: http://radicalpersonalfinance.com/how-to-calculate-how-much-you-need-to-save-for-your-kids-college-rpf0101/ Support Radical Personal Finance! http://radicalpersonalfinance.com/patron

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