Questions to help you gauge how much your family would need in the event of your becoming Critically, Chronically, or Terminally ill, or Dying.
D. (Debts): This is referring to any debts that you might have outside the mortgage (car loan, credit cards, student loans, etc.) If we were going to write you a check to pay off all debts (excluding your mortgage) how much would that check be for?
I. (Income Replacement): After paying off your debt, if we could bring your family a check every month to cover normal living expenses—how much would that monthly check need to be? And, for how many years?
______________Monthly Amount x12 x _____________Years=
M. (Mortgage Protection): What is your current balance that you owe the bank for your mortgage?
E. (Education): What do you feel would be an adequate amount to set aside for you children’s education ($50,000, $100,000)? What is the approximate amount that you have established in college savings?
E. (Expenses—Final): On average, we allocate around $10,000-$15,000 to cover final expenses. Does that see reasonable?
Many historians believe the origin of volunteering came from the early colonists. To get through the challenges that come with relocating, support groups evolved to make it easier. Remember, they didn’t have the services we take for granted today. Families had to pack up, start farms and get through daily tasks on their own. Survival depended on helping each other out.
An Association Plan is group plan of individual policies with the intent to take an advantage of the “rule of large numbers” which in simple insurance terms means that the more people you have in a group, the the age and health risk factors of the individuals within the group are averaged out spreading out the risk and ultimately reducing the premiums compared to rating each person individually.
