Tuesday, March 18, 2008

How Much Life Insurance do You Need After Divorce?

How Much Life Insurance Do You Need After Divorce?
(provided by Ann O'Flanagan, Esq.)

Experts believe that a surviving spouse with children needs at least $100,000.00 worth of insurance for every $500.00 of pre-tax income. If you require $3,000.00 a month ($36,000.00 per year) to cover your expenses, your spouse should have $600,000.00 of life insurance. ($3,000.00/500.00 = 6; 6 x 100,000.00 = $600,000.00) of insurance to meet your bills. The surviving souse would invest the $600,000.00 at a conservative interest rate of 6 % which would generate $36,000.00 a year in interest before taxes. Because the surviving spouse and children would be living off the interest, rather than the principal. the income would last forever. Many people feel that $50.000.00 worth of insurance, that's commonly part of, an employee benefit's package. is enough. It is not.Therefore, at the time of divorce, it is imperative that additional insurance be obtained so that, in the event that your spouse dies, and alimony and child support ceases, the surviving spouse and children have sufficient funds to live on.To get life insurance "by telephone or on line" the following sources can be considered:

InsuranceQuote Services 800-972-1104

MasterQuote 800-337-5433

QuickQuote 800-867-2404

Quotesmith.com 800-556-9393

TermQuote 800-444-8376

Information provided by: Ann O'Flanagan located at http://www.divorcesource.com/NJ/oflanagan.html

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