Personal Financial Planning 13th Edition by Lawrence Gitman,Michael Joehnk,Randy Billingsley

Exercise 7

Providing for our loved ones in the event of our death is a serious concern for most of us. The problem is that planning for such an event is not pleasant, and most of us would just as soon put off thinking about it. This project will help you determine your current and future life insurance needs.
Life insurance can be put in place to provide income for your family, educate your children, or pay off debt. Life insurance can also be used in estate planning or to benefit a cause that's important to you. Make a list of your present life insurance needs and another list of what you expect your needs to be 10 years down the road. Estimate the dollar amount for each of your needs. Use Worksheet 8.1 to determine the amount of life insurance you need now and in the future. Consider the features of different types of life insurance. Which type of life insurance would be most appropriate for you What would the cost be to provide these amounts of life insurance You may use the premium schedules in this chapter or obtain actual quotes from an agent or the Internet. Use these estimates to help you with your personal financial planning.
(Reference Worksheet 8.1)