2. What rate of return can they expect to earn on invested life insurance proceeds?

3. What about the impact of inflation? People tend to underestimate how much cash it takes to generate an income stream over an extended period of time. They feel comfortable with their $200,000 of combined group and personal coverage, which sounds like a lot of money. They never put a pencil to it to see if it’s really enough. This chart shows the amount of cash, invested at various rates of return, that it takes to provide $2,500 per month for 10 years or 20 years.<br />Many people would be surprised at these numbers which don’t even take inflation or taxes into account. They also don’t account for other cash needs such as final expenses or paying off the mortgage and other debts.<br />Lump Sum Needed to Pay $2500 per Month<br />Annual Rate of Return For 10 Years For 20 Years<br />1%$228,490$435,2442%$217,721$396,0073%$207,641$361,5234%$198,198$331,1445%$189,348$304,113<br />Social Security Survivor Benefits:<br /> Some families may be eligible for Social Security benefits following the death of<br />a family wage earner. Benefits may be payable to widows, widowers, children and<br />dependent parents. The number of years a person needs to work for his/her family to be eligible for survivor benefits depends on the wage earner’s age at death. The younger a person is, the fewer years he or she needs to work, but generally 10 years<br />of work will qualify the family for some level of benefit.<br /> A surviving spouse may be able to receive full benefits at his/her age 67. Reduced<br />spousal benefits can be received as early as age 60. A disabled surviving spouse can<br />receive benefits as early as age 50.<br /> A surviving spouse can receive benefits at any age if he/she takes care of the wage earner’s child who is receiving Social Security benefits and younger than age 16 or disabled. <br /> Unmarried children under age 18 (up to age 19 if they are attending elementary or secondary school full time) also can receive benefits. Children can get benefits at any age if they were disabled before age 22 and remain disabled.<br /> Dependent parents (received at least one half of their support from deceased wage earner) can receive benefits if they are age 62 or older.<br />Angela Roach<br />Insurance Professionals of America<br />PO Box 20823 Bradenton, FL 34204<br />888-807-2911 <br />941-761-5388 fax<br />www.SaveOnMyInsurance.com<br />Angela@InsProsOfAmerica.com<br />