by Cecile Cinco
Usually, a person buys life insurance so his or her beneficiaries will not have to lose the incoming financial support that person brings in as a bread winner in the event that the insured dies. It’s love. But how much is enough?
Let’s see the logic of the matter and consider the following questions:
- how much do you bring in to your loved ones now?
You want to make sure that when you leave them, as your beneficiaries, you won’t bring your earning power with you in the grave. The insurance must continue to bring in the dough to them when you’re gone.
- how do you compute this?
The face amount (say, 1M), when left in the bank, must earn the amount that you usually earn. That means, the interest alone must produce the amount equivalent to what you are earning now so by the time you’re gone, all your beneficiaries have to take is the interest.
The same is true for your need when you reach the maturity age of your policy. When you can no longer work because of old age, your whole life insurance interest should be enough to support you…or you can get the lump sum benefit and put up a business or enjoy traveling here and there. It’s your life after all. 
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