What the Secrets You Need To Know About Life Insurance

Take Home Income / Rate of Return = Insurance you need

 

For example, if you take home $50,000 per year (and that’s what your dependents will need if you die), divide $50,000 by 5%. Here, you would need a $1,000,000 term life insurance policy (50000 / 0.05 = 1000000). Your dependents then invest the $1,000,000 at a rate of 5%, which will yield $50,000 / year for 20 years.

Source. https://nataliebacon.com/life-insurance-basics/

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