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By Ismat Sarah Mangla
February 27, 2015
Alamy

As part of our 10-day series on Total Financial Fitness, we’ve developed six quick workouts, inspired by the popular exercise plan that takes just seven minutes a day. Each will help kick your finances into shape in no time at all. Today: The 7-Minute Insurance Check-Up

You’ll need some financial info for this one. Pull together an overview of your investments, what you owe on your mortgage, the amount of life insurance you currently have, as well as saving and debt numbers.

0:00 Visit lifehappens.org, and select “Start calculating your life insurance needs.”

0:21 The first part asks about the expenses your family will incur if you die. Life-Happens suggests budgeting $15,000 or 4% of your estate. A funeral typically costs about $10,000, so if you won’t leave major debts, $15,000 is fine.

2:30 Next, you’ll calculate the money your family would need if you died today, and how much your spouse might earn. While your clan won’t need to replace 100% of your income, you will want to cover regular expenses.

4:19 Step 4 asks for an estimated inflation rate (pre-populated with 3%) and after-tax net investment yield (pre-populated with 6%). To be more conservative, decrease the yield.

5:00 Now the site will spit out a suggested amount of coverage. This is a good starting point but may miss some details. Say you’d like to cover a portion of your kid’s tuition; the calculator doesn’t allow for partial payment.

5:59 Go to intelliquote.com for instant quotes on term-life policies from a range of insurers. (Don’t be surprised if you get some sales calls.)

Easy, right? Next you’ll want to do an insurance inventory to check the health of all your policies. Not only will you be better protected, you might save some money too.

Previous 7-minute Workouts:

Advertiser Disclosure

The purpose of this disclosure is to explain how we make money without charging you for our content.

Our mission is to help people at any stage of life make smart financial decisions through research, reporting, reviews, recommendations, and tools.

Earning your trust is essential to our success, and we believe transparency is critical to creating that trust. To that end, you should know that many or all of the companies featured here are partners who advertise with us.

Our content is free because our partners pay us a referral fee if you click on links or call any of the phone numbers on our site. If you choose to interact with the content on our site, we will likely receive compensation. If you don't, we will not be compensated. Ultimately the choice is yours.

Opinions are our own and our editors and staff writers are instructed to maintain editorial integrity, but compensation along with in-depth research will determine where, how, and in what order they appear on the page.

To find out more about our editorial process and how we make money, click here.

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