Today's show gives you the tools you need to sit down and calculate an appropriate amount of life insurance coverage for you to own.

On Episode 173, I discussed the three primary ways of calculating an appropriate amount of insurance:

1. Human Life Value approach
2. Needs Analysis approach (the best)
3. Rule of Thumb approach

This show teaches you how to calculate a Needs Analysis.

The process is simple:

What You Want - What You've Got = What You Need

In order to figure out what you want, simply make a list of everything you want for your family in case of your death.

Divide that list into:

1. Lump Sum needs (immediate cash)
2. Income needs (ongoing cash)

For the income needs, decide:

1. How much?
2. For how long?
3. Liquidating approach or a non-liquidating approach?

Enjoy the show!

Joshua

Links:

• Episode 173: http://radicalpersonalfinance.com/173-economic-basis-of-life-insurance-and-individualfamily-uses-of-life-insurance/
• Episode 101: http://radicalpersonalfinance.com/how-to-calculate-how-much-you-need-to-save-for-your-kids-college-rpf0101/
• Support Radical Personal Finance! http://radicalpersonalfinance.com/patron