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Frequently Asked Questions

• How much life insurance do I need?
• What is the difference between term and whole life insurance?
• Should I buy life insurance for my husband/wife or children?
• Why should I buy life insurance through a separate company if I already have life insurance through my employer?
• I'm not in the best of health. Can I get life insurance at an affordable rate?
• I'm going through a divorce. What life insurance issues
  should I be concerned with?
• What health considerations are important in getting favorable life insurance coverage?
• What happens at the end of my term policy?

Q. How much life insurance do I need?

A. The question isn't really how much you need, it's how much money you must replace to ensure your family maintains its standard of living.

To figure that out, start by calculating a rough estimate of your annual family budget. Include such fixed expenses as mortgage or rent, auto payments, child care, insurance needs, utilities, medical and dental bills, and other basics. Then add in future expenses such as private school and college and braces or music lessons for the kids.

Next, estimate your assets and income. If you are married, will your spouse earn any income? Do you have assets that your spouse could liquidate on very short notice? Do you have three or six months of income readily available as an emergency fund? You should consider how much of your income must be replaced over a period of several years to arrive at an understanding of your life insurance amount.