How Much Insurance Do I need?
Use this comprehensive needs approach insurance calculator to find out.
Before calculating the insurance amount required for you, please take a moment and recognize that anyone of us can die at any time. Remember how you felt when heard of someone young die suddenly. When you fill this excel sheet you should retain that feeling!
This calculation is pretty much commonsense. If you were die suddenly:
1) all outstanding unsecured loans should be foreclosed
2) provisions should be made for your children to finish school, enter college and marry
3) provisions should be made for all other annual expenses for your family.
The excel calculator provided here offers many options to accomplish the above. It is a comprehensive calculator and the method used is the most accurate one for estimating insurance amount. There are three options provided for estimating the insurance corpus needed to meet your family's expenses. Choose the one which you are comfortable.
The calculator also shows what % of the corpus to invest goals 1,2 and 3 mentioned above. Whether you follow this calculator or not it is imperative you discuss with your spouse or legal heir about handling the insurance sum received. It is best to let a financial planner handle this.