Life Insurance Video for Medical Professionals and Families

Posted on August 20, 2012 · Posted in Family Risk Protection, General, IP for Medical Practitioners

Life insurance is the most well known of all risk insurance.  I am often asked how an appropriate sum is calculated.  I commence this process by completing an assessment of a clients income, expenses, assets and liabilities.  I tally up the liablities such as bank loans, leases and investment loans as a starting point.  This will leave the surviving spouse debt free and in some cases rent from an investment property as income.  So at least their are no mortgage to worry about and no banks to worry about.  I then allow a sum to educate the children this sum depends on a number of factors such as how many children there are, future family plans, the children’s ages and where they expect to be educated, an industry standard of $200,000 per child is a good guide.  I allow a sum to pay for a funeral and negotiate a policy with an early release benefit to pay for the funeral costs in a timely manner.  Finally, I determine an amount which a surviving partner can invest with the goal of living off the investment return until the children are educated at the standard advised when the assessment is completed and then living off the principal.