American Family Life Insurance Calculator

Consumers are always looking for guides to help them determine their financial needs and this could not be more true for life insurance specifically.  There are so many questions from do I need whole life insurance or term life insurance, and how much coverage is really necessary?  One life insurance company wants to help their potential and existing customers quickly figure out what will benefit them most.

American Family Life Insurance offers a valuable calculator right on their website that walks you through a series of questions to help you determine what type of policy will work for you.  Life insurance is not one of the easiest topics to discuss, but it's a very important matter to put on the table.  Their calculator is designed to simplify the process and ensure you get what is best suited to your individual needs.

They have you begin by evaluating your expenses which is of course necessary in determining the amount of coverage you will need in the case of your death.  This not only includes debt, but ongoing expenses such as daycare and tuition.  Medical bills, burial costs and estate taxes should also be factored into this equation.  They have you plug in your expenses along with emergency funds and special needs into the calculator.  Next you enter in your assets such as checking, savings, CDs, Money Markets, retirement accounts, annuities and other investment accounts.  At this point they will get you in touch with an agent to walk you through further details of your needs and get you the information you are looking for.

They do mention that one rule of thumb is that you should buy life insurance equal to five to seven times your annual income, but this is no substitute for evaluating your specific needs.  Each individual will have their own situation that might vary the amount of life insurance they should carry.