David M. Frees
Insurance, Inc.

Life Insurance Review

Life insurance is not different than any other type of insurance. It is designed to deal with the financial consequence of your early death. It would protect your remaining family since youare not around to continue to earn your living. It would pay off a mortgage, put children through college or create a financial safety net for a spouse or children.

The easiest way would be to use a multiple of 8 to 10 times your salary. If you make $10,000 a year, you would buy $100,000 of coverage. The pay out of $100,000 could be invested and the interest income from the money would be equal to your prior income of $10,000.

This formula would get adjusted depending on where you are in your life. If your children are gone and your mortgage is paid off, you would obviously need much less coverage. You need to adjust this basic formula depending on your own financial situation.