We all understand that you cannot put a price tag on the value of human life. However, if you are a husband or wife, or father or mother, your departure would leave a financial gap that could impact the financial health of your family. One component of that difference would be the money you would earn between now and the date of your retirement. When you begin looking at how much life insurance you will need, you will want to make sure that your policy adequately replaces any earnings that your family would miss out on, up until your retirement. The present value of those earnings represents the amount you would need today to replace all of your future earnings. Of course, it is best to work with a knowledgeable financial planner to get the most accurate life insurance assessment given your particular situation and needs.
The Value of Your Future Earnings
The Value of Your Future Earnings
Cumulative Earnings |
Rate of Return |
Present Value |
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