Are you thinking about buying life insurance, but aren’t really sure where to start? Oru talented authors have put together a free worksheet for you that can help. Print it out, fill in the blanks, and you should start to get closer to making a smart decision about the kind of life insurance you need for you and your family.
Getting familiar with the particulars about life insurance policies is important.
Educating yourself about life insurance ensures you’ll make the best decisions to protect your family’s future. Complete this worksheet to help you understand the ins and outs of life insurance.
- Do you think you need life insurance? Why or why not?
- List 4 insurance companies you would like to investigate to review their customer reviews and their financial strength figures.
- Now, jot down the names of the top 2 life insurance companies, based on what you discovered from completing #2 above.
- Next, calculate the amount of life insurance needed, using the tables below:
Table 1. Calculation of Total Funds Required Upon Death
Funds Required by Your Family Surviving Spouse’s Total Costs
Your Income $ ____________ per year
Your Family’s needs for next _ years
_ years x yearly income
$ ____________
Outstanding balance on mortgage + __________
College for _ kid(s) + _____________
Your Funeral Costs + __________
Total Overall Costs = $ __________
Table 2. Calculating Total Assets to Subtract from The “Total Overall Costs” in Table 1.
Assets Your Family Will Have
In Your Absence Amount to Subtract From
Surviving Spouse’s Total Costs
Total Overall Costs
(last line from Table 1) $ ____________
Social Security Survivor Benefits for Spouse & Kids
(i.e. $12,000 per year in benefits) _ years x social security payments
- __________
Current Savings
(money in bank account) – __________
Retirement/Investment Savings – __________
Life Insurance Needed = $ __________ *
*This figure assumes surviving spouse will be able to support themselves upon retirement and doesn’t include funds for retirement years.
- Describe in your own words the benefits of the various types of life insurance policies.
Term Life: ___________________________________________
Whole Life: __________________________________________
Universal Life: _______________________________________
Variable Life: ________________________________________
Survivorship Life: _____________________________________
- Name 2 ways you can use your life insurance policy as a financial tool.
- Name the 3 general ways you can receive life insurance pay-outs. How are they different from one another?
- List and describe the different types of annuity pay-outs for life insurance beneficiaries.
- Which type would you select if you were to be listed as a beneficiary? Why would you choose to take the pay-out this way?
With this knowledge, you’ll be able to make the right choice when it comes to life insurance decisions.
Need more help because you are not sure about all the terms used and the differences between policies? Click here for our guide on Life Insurance.
