Buying a life insurance policy is never fun. First, it’s the contemplation of yours or a spouse’s death. Second, it’s another expense. So, you do what you can: eat more vegetables, look both ways, and take out a suitable life insurance policy. Start with a basic formula: add up final expenses, household debt, children’s education expenses and income replacement (salary divided by .05). Consider areas where you might want to adjust for more or less. Medical conditions, insufficient retirement savings are good reasons to pad the policy a bit. The plan you require could easily be over $1 million, which sounds like a lot, but the premium on such a plan is usually less than $100 a month. Shop around to compare prices, and don’t forget that a policy is for one person – spouses should have their own policies.

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