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Human Life value Technique

amt of LI to purchased is the PV of the family's share of the deceased breadwinner's future earnings. usually says you need more than necessary. used in court

Salary multiplier approach

LI amt is multiply your income times 10. not good because everyone has different needs

Capital retention approach

luxury approach. purchase enough LI so the income generated from invested LI proceeds plus other income will produce a desired income level in perpetuity EX endowment technique

needs approach

T-acct; determine LI needs by determining financial needs if breadwinner dies compared to financial needs to existing financial resources and purchase LI for the difference.

Readjustment pd

2 years

dependency pd

before the blackout period

blackout period

time when you stop getting benefits to the time you get SS and other benefits


donate; gift

Financial planning process

1) gather info 2) establish objectives 3) analyze info 4) develop a plan (write will) 5) implement plan 6)monitor and take corrective action


die w/o will

living will

if on life support... tells when to unplug you


riskier but higher returns


lower return but safe

tax avoidance

legal; reducing tax liability; ex: donation

Tax evasion


estate planning

death, taxes, incapacity, laundry list.. who gets what

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