You Need Life Insurance

  1. Income: you need enough life insurance purchase an asset that will replace your income for you. If you make $50,000 per year, you’d do this math: $50,000 divided by .12. Why? You want real estate and assuming you have a 12% cash on cash return, you can find out how much real estate is needed at a 12% return to produce the income you need. You want your life insurance to pay for a 25% down payment to purchase an income property that will replace your income. $50,000 divided by 12% = $416,667. This money will purchase an asset that will quite literally replace your income.
  2. Mortgage: if you have a mortgage, you need enough death benefit to pay it off.
  3. Final Expenses: you need $15,000 included in your coverage to pay any final expenses required to provide a phenomenal burial ceremony that will make your family proud and remember your legacy.

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Jerry Fetta

Jerry Fetta

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Jerry Fetta is the CEO and Founder of Wealth DynamX. Jerry’s mission in life is to help create millions of financially educated and wealthy families.