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Aim: What is the purpose of life insurance?

Aim: What is the purpose of life insurance?. Do Now: List your current financial responsibilities at home . What are yo ur parents’ financial responsibilities? Date: Tuesday, May 6 th 2014. What is Life Insurance- Video. Sharina's Life Insurance Blog. What is life insurance?.

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Aim: What is the purpose of life insurance?

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  1. Aim: What is the purpose of life insurance? Do Now: List your current financial responsibilities at home. What are your parents’ financial responsibilities? Date: Tuesday, May 6th 2014

  2. What is Life Insurance- Video • Sharina's Life Insurance Blog

  3. What is life insurance? • Provides financial support (money) to your family or other dependents after your death. • Death benefit-helps those who are left behind to meet important financial needs such as • Funeral costs • Ongoing living expenses • College funding

  4. What is a dependent? • A child, husband or wife, possibly a parent, sister or brother, even a business partner • Anyone who depends on you financially

  5. 3 Key Questions • Do I need life insurance? • How much do I need? • What kind should I buy?

  6. 1. Do I need life insurance? • Evaluate your families needs • Gather all of your personal financial information and estimate what each family member would need to meet current and future financial obligations • Tally all of resources that your surviving family members who draw upon to support yourself Life Insurance Need Resources to meet them Family Needs

  7. 2. How much insurance does a person need? • How much money will my family need after my death to meet immediate expenses? • Ex. funeral costs and debts (mortgage balances) • How much money will my family need to maintain their standard of living over the long run? • Ongoing expenses • Future obligations

  8. 3. What kind should I buy? • Permanent Life Insurance • Provides permanent lifelong protections as long as you pay your premiums • Has a cash-value Term Life Insurance • Provides protection for a specific period of time • Term periods range from 1 year to 30 years. (20 years most common) • Advantage-Lower initial cost compared to permanent life insurance

  9. Discussion Question • How would a stay-at-home parent benefit from having a life insurance policy?

  10. Charting My Course Activity

  11. HW Due WednesdayCharting My Course Activity

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