Learn how you can realize the full extent of your human life value.
When determining how much life insurance you need, one important thing to consider is your “human life value.” This value refers to your financial value to your loved ones. While it’s true that you can’t put a number on your worth to your family, you can calculate what your future financial contributions will be. Here’s why it’s important to determine your human life value and how you can do so.
Why is this important?
Knowing your human life value is important when purchasing life insurance because you need an accurate idea of what your loved ones will need if you were to die and were therefore unable to contribute financially to your household. If you do not take the time to accurately calculate your human life value, then you run the risk of leaving your loved ones in a precarious financial situation. If you want to ensure the financial stability of your family in the event of your sudden passing, then you should be sure to take the time to do this well.
How do I determine this value?
First, it’s important to understand that your human life value does not represent the exact amount of life insurance that you should get. This value essentially represents the amount of coverage you would like to provide to replace your lost wages for a set amount of time. This value should be added to the amount of coverage you need to settle your debts, pay for your funeral expenses, and so on to determine the total amount of coverage you want in your policy.
Calculating your human life value requires you to take into account a number of factors, including: your occupation, income, benefits, and so on. Additionally, your age is also a major factor in determining your human life value. For instance, a 40-year old will need more coverage than a 70-year old because the younger you are, the longer your family will have to do without your financial contributions.
This is why determining your human life value is so important in getting the right amount of life insurance coverage. Do you still have questions regarding your life insurance? Then don’t hesitate to contact the professionals at Stromsoe Insurance Agency in Murrieta, California. Our dedicated team is ready to assist you with all your coverage needs today.
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