For the insurance contract to play the role it should, it is important to calculate the Insurance Amount correctly and cover all the needs of life insurance. The needs may be the following:

• Funeral expenses, which include:
• administrative funeral costs (10-12 thousand dollars);
• costs to cover small debts (credit cards, car and furniture bought by installments);
• tax payments (annual income tax, probate fee, capital gain);
• Mortgage payment. Even if a family rents an apartment, still a certain some is included to cover the needs of the insurance. Everyone wants to have lodging for the family paid for a certain period of time (while the children are under age);
• Education payment for children. We all understand how important it is to have adequate education in this country. If you have Education Insurance Savings program, you are always able to make changes in it;
• Compensation for family income. The fact is, that even in cases when your mortgage is completely paid, your family needs money for food and clothes, for entertainment, property tax, utilities, car insurance, gas, TV, telephone, Internet, etc. Life is like that. This is especially important in cases when children are still financially dependent.

All these factors help to estimate the amount, which is required to protect the family in today's situation. The amount looks substantial, but it is possible to pay acceptable amounts. It depends upon what kind of insurance we are buying - temporary or permanent.

Among the factors listed above there are permanent needs (expenses connected with the person's death; compensation for the spouse) and temporary needs (paying off the mortgage; expenses for education for children; compensation for the family while children are financially dependent), that is why combination of temporary and permanent insurance may be the best. One can get larger amount for less monthly payments. A few years later it is possible to look through the needs of insurance and make changes.

I am always glad to help you calculate the amount for insurance cover needs. To be able to do it we will have to analyze the financial situation of the family and also take into consideration the benefits, which you have at work.

Please, look through your Polices. What are the amounts of your cover? Is it enough to practically cover your family? The amount of cover should be chosen regardless of financial situation of the family. It is equally important for families with any am