Many people buy policies worth $100,000, $200,000 or $300,000, but that may not be enough. The DIME method offers a easy formula to calculate your life protection need.
Most people have good protection on their houses and cars, but few have enough coverage for their loves ones.
With $730,000 of insurance protection; If this person dies too soon, the surviving spouse will have enough money to pay off the $50,000 debt, continue to have $3,000 income per month for 10 years or more, pay off the remaining $200,000 of their mortgage, keep the house, and still have $120,000 saved up for 2 kids when they are ready for college.
The DIME method will allow to you calculate exactly how much insurance you need. People say, ” I already have life insurance!” They may, but the real question is do they have enough? How would you feel if your $300,000 home burned to the ground and when you file a claim, your insurer tells you have $50,000 worth of coverage? That normally won’t happen as the bank will make sure you have $300,000 of protection.
At the time of your untimely death, things will be a bit haywire for a while. Emotions will be running high, social media will be flooding with messages to your loved ones, and rising above all, the financial burden. Yes, even in death you have things to pay. When considering all these variables, it would probably be best to invest in Life Insurance.
