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The Value of Your Future Earnings

Life Events

People take out life insurance policies to financially protect their loved ones if something were to happen to them.

The question, though, is how do you determine how much of a policy do you need to adequately take care of your family after you are gone? An easy way to figure that out is to estimate the money you would earn between now and the date of your retirement. The present value of your earnings represents the amount you would need today to replace all of your future earnings, giving you an adequate idea of how much your family would need.

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