Life Insurance: The Retirement Needs Approach

Life insurance protects family members if their monetary provider was to pass away and they are not financially able to continue with everyday expenses. This does not include the burden of financial expenses for burial, taxes, unexpected or emergency expenses, and furthered learning expenses for the remaining children or to have the spouse go back to school to become the primary wage earner of the family. Life insurance is also not affordable if you are young and just starting a family and it is not their main focus. Most young people to do not think too much into their death, and therefore, they seldom think of life insurance as a necessity. As we grow older, we aspire to have a secure financial future for our families, in order to do so we …show more content…
The "Human Life Value" approach. 2. The "Human Needs" approach. 3. The "Retirement Needs" approach. Since people do not know if they will live to retirement, it is essential to have a good life insurance policy that will help provide for the "human" and the "retirement" needs for surviving family members and themselves. When evaluating the Human Life approach you should base your decision on the thought that a person should calculate their estimated annual net income. Doing this allows a person to calculate and determine how much money will be needed, in case of their death, to continue providing a comfortable life for their survivors. The process of estimating your earning capacity is a valuable need in determining what kind of insurance you will require for when you pass away or retire. Using the Human Needs approach will configure the defrayal costs of a funeral, mortgages, taxes and or car payments. It will also provide the income the family needs to readjust to a new lifestyle, income for the family, life income for the surviving spouse, special needs of the family such as college education for the