Life Insurance Quote And Human Life Value Cooncept

We all procrastinate in obtaining a life insurance quote. But once you decide that you need a life insurance quote, how do you go about deciding how much coverage. Life insurance companies provide quotes based on a concept called human life value.

This concept was conceived nearly 100 years ago, by Dr. Solomon S. Heubner in the 1920s and has stood the test of time. In the process of getting a life insurance quote, the agent determines how much your family would stand to lose financially in the event of your death as sole breadwinner.

When you get a life insurance quote, your agent will use four determining factors in figure the human life value concept. These factors are: annual income, and your expenses, the number of years left until the provider's retirement, and the expected value of the dollar upon retirement with inflation factored in. Using these criteria, your agent will work up a precise life insurance quote for you.

Here's just one example of how these factors work together for a life insurance quote. George is 40 years old. He earns $60,000 a year. His expenses per month, excluding the bills, are $550. At the moment he has received a life insurance quote of $100,000 worth of life insurance. He hopes though to take more life insurance out.

George's life insurance agent uses the human life value concept to provide another life insurance quote. George's estimated human life value is actually $889,000. Therefore, George's life insurance quote needs to take into consideration an additional $789,000.

In obtaining a life insurance quote, the human life value concept is used by your insurance agent only in determining a basic estimate of your needs. Depending on your personal financial situation, you may need more or less. But at least this life insurance quote gives you some basic idea.

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