Amount of life insurance to purchase Research Paper

Amount of life redress to purchase - Research idea Example4. Estimate future income needs. 5. Anticipate special needs. This review follows these steps to a life insurance value. I am a 30-year-old man with a wife, same age, and two children, ages 2 and 4. I get laid a good job paying $50,000 per year, and my wife earns $30,000. Our net take home pay is virtu bothy $40,000 after all deductions. If I should die early, I want my wife to be able to proceed at home and parent the children full time. We welcome managed to save $25,000 cash in checking and savings accounts. We cede a portfolio of mutual funds, $48,000, securities, $10,000, IRAs, $6,000, and a 401K with $6,000. Our total liquid assets are $95,000. Currently, I have three measure earnings as a life insurance benefit at work and a $10,000 aid death benefit for a total in force life insurance of $160,000. Upon my death, my wife would have liquid assets of $255,000. My death would cost $7,500 in funeral expenses, $5,00 0 deductible for medical insurance, $22,000 to clear our installment debts and astir(predicate) $3,000 in probate costs. These costs total $37,500 so the liquid assets decrease to $217,500. Insurance must replace all of our income for my wife to stay home. An after death adjustment period of two years costs about 150% of normal earnings for a total of $120,000. The children will be dependent for another 20 years.