How Long Will Your Life Insurance Last? From United of Omaha Life Insurance Company or Companion Life Insurance Company
United of Omaha provides a free life insurance tool that can help you analyze how long your life insurance death benefits can be expected to last the beneficiaries.
Death benefits typically sound like a lot of money. You may believe that $100,000 will sustain your family for many years, if properly used, but this may not necessarily be the case. Our calculator will help you determine a realistic timeframe for how long your benefit amounts will be able to sustain the survivors financially.
Elements to Consider
The first element to consider is the death benefit amount. Enter your death benefit amount in the proper box to begin the process. For more information and advice, see our article on determining a death benefit amount.
Then you will need to determine the monthly survivor income needs. How much money will it take to sustain your beneficiaries, and what type of lifestyle do you expect them to lead? Are you attempting to provide enough money that your beneficiary won’t have to work or enough to supplement their income?
Adjustments
The calculator will attempt to take inflation and before-tax return on insurance. Charts are provided to help you estimate these numbers. Using that historical data, make an estimate of future inflation and return rates to add to the income and benefit amount data already present. We recommend repeating this step of the process at least once or twice, using different inflation and return rates. This will help you prepare for a range of scenarios.
Tax and Amortization
The last two boxes tell you how tax rate and amortization schedule will impact your life insurance benefits. Fill in the appropriate tax bracket, rate and desired amortization schedule (yearly or monthly) - then hit calculate. United of Omaha will provide you with a projected overview of how long your life insurance proceeds will last.
Reading the Charts
The charts provided by United of Omaha will show projected balances for the length of the policy, predicted investment return on the funds and the projected expenses. This will show you how long the policy proceeds are expected to last, allowing you to evaluate whether or not your life insurance policy provides enough funds.
This tool is useful for your yearly review of life insurance, as well as when you are researching a new policy. To find how long your life insurance will last you, visit our calculator today.
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