When buying a life insurance policy (death in fact), death insurance is proving to be the most important element. It is the amount that your family will receive in case something happens to you and you leave life prematurely.
But how can you calculate this amount more accurately? The financial needs of each family are completely different. This is why the death tax must be calculated accurately so that it can provide for your family financially if you are not there for them.
Here’s how to put one together for use with your life insurance policy.
Living expenses: Calculate how much money your family members need each year to be able to survive and do whatever activity they need (rent, utilities, bills, clothing, tuition, tuition, extracurricular activities, food expenses, vacations, etc.). Decide at what age you think you should provide them with financial support. Now considering their age today multiply the required annual expenditure capital by the years up to the age of choice of your desired financial support. Add all members’s funds.
Education: If you intend to finance your children’s possible studies after completing basic education at universities either in Greece, at home or abroad, or abroad, you will need to add this amount to the total so far.
Debts: If there is a mortgage or personal loan in your name or even credit card debt you should include it in the death fund, as it should be repaid normally, as if you were alive.
Inheritance Acceptance Costs: If you are lucky enough to own real estate then you are unlucky that it is very expensive for your beneficiaries to accept this inheritance. Ask a notary public so you can add this amount to the total.
Funeral costs: You can also calculate the cost of the funeral and other ceremonies to further reduce the burden on your family.
So far we have talked about expenses that we have to add in order to come up with a cover fund. Fortunately, there are various things that we can remove from the whole so far.
Widow’s allowances: See what additional widow’s allowances the state gives and subtract them from the total. Many times it differs depending on the age, the work of the wife and the number of children.
Real estate income: If you are lucky enough to own apartments that you use as extra income by renting them, then you should calculate the annual income from them and subtract it from the total. Logic says they will continue to offer income without your presence.
If you own plots you could also deduct their value from the total but keep in mind that if your family is forced to sell immediately then they will not be able to capture their fair value but much less.
Income from your spouse’s work: If your spouse is working then we deduct this annual income from our total amount as it will logically continue to be income for your family.
Tips to remember:
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