This ongoing series (10 weeks total) is brought to you by one of my favorite sites DailyFinance.com and it is written by Brian O'Connor.
The $1,000 Challenge, Part 8: Yes, You Need Life Insurance - but How Much?
And should my wife prematurely shuffle off this mortal coil, I'd need a good-sized wad to cover everything she does, from chauffeur and cook to teacher and nanny.
Those kinds of changing needs and shifting family situations are why insurance coverage should be reviewed every two years, says my insurance expert, Ronald Ostezan Jr. of Insurance Partners Agency of America in Troy, Mich.
- Paying off all household debts, including the mortgage (if you have one)
- One year's worth of living expenses for your loved ones, so they can figure out just what to do now that you're gone
- Enough money to support children and other minor dependents through college
- And, if your spouse doesn't work outside the home, enough money to support him or her through to retirement, or at least make up for the loss of your income.
- Week 1 - Miscellaneous Spending: $132.89
- Week 2 - Utilities and Phones: $139.39
- Week 3 - Transportation Costs: $41.61
- Week 4 - Kid Costs: $114.50
- Week 5 - Work Costs: $90
- Week 6 - Personal Spending: $104
- Week 7 - Entertainment: $108
- Week 8 - Insurance: $64.40
Total Monthly Savings: $794.79
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