Analyze how much Life Insurance Coverage I need

Life Insurance Tools

Here are two spreadsheets that will help you to determine how much coverage you need.

File 1

File 2


Here is a link to a Life Insurance Calculator


here are a few Widgets to help determine the amount of coverage needed.


How long will my life Insurance proceeds last?


Earnings over a lifetime

How Much Life Insurance Do I Need?

Life Insurance Policy

Protect your family.

Often the question of how much life insurance is needed is a difficult question because no one actually knows what their exact life circumstances will be when they pass away.  Certainly, the need for life insurance is imperative as the responsible adult would like to leave this world in a better way than they found it, and what better way to do that, than a life insurance policy that allows your family members to continue living in a manner to which they are accustomed.  We would hate to think of our family strapped with a pile of expenses and then having to change their life radically because there is not enough income to support the household.  As such, this gives rise to two very important questions.

First, how much is needed to cover a person’s obligations at the time of death?  To determine that amount one needs to consider medical bills, funeral expenses, outstanding debt, and mortgages.  Often there are costs that many forget like the costs to settle the estate which includes attorneys and accountants who all will expect to be paid for their services, so your beneficiaries can take what remains and hopefully maximize what remains within the laws of the probate code.  Since there are many unknowns you simply need to do your best to estimate those costs given the information you have now.  Certainly, the average cost of a funeral and the average cost to settle an estate are readily available.

Rest assured, there will be unknown and unexpected costs and bills that arise, but they are exactly that – unexpected and unknown, and thus there is nothing you can do about it except maybe factor in a safety margin to an extent that you feel comfortable.  Again, you are seeking peace of mind knowing there is enought to take care of your loved ones.  Let go of that which is completely out of your control but put a safety cushion in just in case if that make you feel better.

Second, how much will be needed to support the household after you are gone?  This largely takes into account the income stream that you would have otherwise brought into the household over a period of time.  Certainly, it would not be reasonable to think that period of time would run into perpetuity.  Although life insurance is often used as a wealth building vehicle, we are not dealing with that question here and that will be left for another day.  Here, however, we are considering that which reasonably would be expected to allow the family to comfortably sustain their household while matters readjust to account for the income that has been lost.  That may be perhaps a period of time until all the children reach the age of majority or until one’s spouse is ready to retire.

Whatever that period of time may be, you must also remember that a dollar tomorrow is not worth the same amount as a dollar is today.  Thus to determine what is needed you will have to consider the time value of money.  If you seek to be exact, some mathematics will be involved.  Or, just add 10% for every year until your expected age of death using any actuarial table.  Note, most spread sheets have built in financial function that can make those calculations for you. (click here to go to our Life Insurance Tools, where we have spreadsheets and other widgets to help in you in you quest for Life Insurance information.)

An alternative approach, is the notion that you just want your family to have a lot of money and they can figure out what to do with it.  That may be $500,000, $750,000, $1,000,000, or more.  This is a very technical approach that those in the business say “what does your gut tell you?” Which takes into account that your gut is usually right.  However, keep in mind that what your gut tells you may not be what your wallet says you can afford.  Even though you may want your family to inherit a multi-million dollar insurance policy, you may suffer in the short run as the premiums chew up your disposable income.  You need to put a line item in your budget that includes the premium to be paid each month and for each year and most have a budget that figures what they pay out of each paycheck.  That life insurance line item needs to be at the top of the budget with those important matters of necessity such as mortgage, utilities, food, and college.  You may have to adjust those more expendable items at the bottom of the budget.

However that happens, make sure the premiums fit within your budget so that you maximize the amount of the policy with the dollars you have available.  That’s why you shop for insurance to make sure you get the biggest bang for your buck.  You also have to keep in mind that you need to pay that premium for many years, which may be a daunting thought at the outset.  However, we have all experienced a payment that at one time seemed to be somewhat expensive, seem so much more affordable years later.  Think about the mortgage you had 20 years ago.  It seems like a drop in the bucket compared to your current house payment.  This is just another effect of the time value of money.

With life insurance, the premium needs to be affordable today so that years later that payment will seem, and actually be, easier as you pay the same amount with dollars that are worth less.  Also, you want to make sure you can continue to support the policy, as there is nothing worse than paying for many years and then allowing the policy to lapse, which could happen right when your family may need that policy – ouch.  So despite whatever calculations are made, or what your gut tells you, the perect  life insurance policy for you may be that which you can afford.  In fact, getting what you can afford is the most responsible approach you can take.  Even if its not that multi-million dollar payout, you are taking care of the ones you love and doing the best you can with what you have.

Click here to get an instant Life Insurance Quote

Builders and Tradesmen Insurance

We Serve all types of Builders, Tradesmen and Artisans which include the following areas:

In Addition to General Contractors and Subcontractors of all Sizes we Assist:

  • Carpentry/Carpentersmasonry
  • Concrete Construction
  • Electrical/Electrician
  • Floor Covering
  • Landscaping
  • Painting/Painters – Interior or Exterior
  • Tile and Stone Installation – Granite Work
  • Masonry
  • And More – We help insure all classifications.

As a Tradesman or Artisan in the construction business you take on many responsibilities. You probably spend most of your time at one job-site or another another. Whether you work with corporate customers or residential clients, you must keep track of each project and all of the details.  As part of of those details, you must make sure your business is fully protected. Risk and liability can arise in many ways and you need to have the right  types of commercial insurance.  You need to make sure you cover other third partes in case they are injured as a result of the work you perform and make sure you cover yourself and your own employees in case of an accident or injury.

As an independent agency, FirstCapital can help you find the right insurance as we write insurance from various carriers through the business relationships that we have formed. Unlike other Insurance agencies FirstCapital is owned and operated by a practicing attorney in California who will provide a FREE RISK ANALYSIS AND POLICY REVIEW as part of their search for insurance.

  • Fast Quotes
  • Competitive Rates and Premiums
  • Quotes, Binding Authority and Insurance Certificate in Minutes
  • Surety Bonds

One Unique aspect of the construction business is the Action Over Claims that can render your business self-insured for injuries to your employees and the employees of your subcontractors notwithstanding any workers’ compensation insurance you may have.  If your current agent has not spoken to you about such gaps in coverage, or you do not know or understand what an Action Over Claim is, you need to call us immediately as we can insure you are covered under such instances.  Don’t be shy call us.  Most contractors do not know about Action Over Claims until it is too late and they are on the hook for all the damages of an injured worker.  But, remember you can insure against such risks.

Unlike many agencies we can generally write insurance for New Businesses and for those with a gap in insurance coverage.  Others won’t even consider you claim but we can generally write such insurance. Certainly any insurance history you have and time without claims will be considered as a credit to your advantage when the underwriters consider your premiums.

GENERAL LIABILITY INSURANCE (CGL)

All independent contractors and companies of any size, should carry general liability insurance. This coverage protects you from unexpected events, problems and potential hazards. If you work from a shop that customers visit, general liability protects you if someone gets hurt while they’re there. It also protects you if the customer’s property is damaged on your premises. It protects you from losses that might arise due to natural disasters, product liability and advertising liability as well. This is a solid, all around insurance plan for small businesses that grows with your needs.

BUSINESS OWNERS POLICY

A business owners policy (BOP) includes general liability and expands to cover business property as well. This insurance plan can be tailored to meet the specific needs of your company.

  • Equipment Breakdown – Whether you work from a stationary location or you go to each individual job, when your equipment breaks down it can be costly. Repairing or replacing the equipment may not be in the budget, and you can lose income if machines aren’t working as well. A BOP protects you from these types of failures by covering the costs of repairing or replacing your professional work equipment.

  • Buildings and Contents – When you work from a shop you rely on having the building available and fully functional so that your business can operate. You also may have important physical assets inside such as office furniture and workshop machines. A BOP can take care of the costs that come up when your buildings and their contents are damaged or destroyed, such as from a natural disaster.

  • Business Income and Extra Expense – If your business structures or content are destroyed you can lose a lot of income due to not being able to perform your work. A BOP can provide for lost business income or help you with the added expenses of renting temporary work spaces and machines.

  • Products and Completed Operations (Included in General Liability) – As a Builder, Tradesman or Small Artisan there may be times when you complete a job but it comes back with problems at a later date. If this happens, a BOP can be there to help.

  • Electronic Data – A BOP helps cover the expenses involved with recovering lost electronic data files that are critical to the operation of your business.

  • Newly Acquired or Constructed Buildings – As your business grows you may decide to add more workshop space or an area to display work to potential customers.

  • Valuable Papers Protection – If you keep valuable papers in your office, such as original blueprints or contracts, a BOP can protect you if those are damaged or destroyed.

  • Employee Dishonesty Coverage – Employee theft or dishonest practices is an unfortunate fact of business. Your BOP policy can protect you from losses caused by unauthorized credit card uses or funds transfers and tangible property theft among other things.

COMMERCIAL AUTO INSURANCE

Business auto insurance protects your company if there is an accident. It can cover vehicles used for business purposes even if they are not company vehicles.  You also may need Inland Marine Insurance which can protect equipment that is not intended on the road and other personal business property associated therewith.

WORKERS’ COMPENSATION INSURANCE

Workers’ comp insurance is required by law when you have employees. It protects you and them from having to pay for medical care and expenses if they are hurt on the job. We also will advise as to Action Over Claims as mentioned above.  Most Workers Compensation insurance exclude third party claims. Many time the General Contractor, or hiring contractor have created an unsafe workplace for the subs an they are responsible as third parties for the injuries to your employees or the employees of your subcontractors.  If the General Contractor or the Hiring Contractor has a Hold Harmless Clause in your contract (most do) that can put the legal responsibility for such claims back on your plate even though you have worker compensation.  You need to guard against such risk.  If you currently have an insurance agent they probable have never mention such risk or gaps i your current insurance.  Call us (818) 451-3878 and we can fully explain these types of risks that are very prevalent in the construction industry.

SURETY BONDS

Surety bonds act as guarantees that you can fulfill a contract. You may be required to be bonded before you can win a government or large corporate carpentry contract.

FAULTY WORKMANSHIP

Your General Liability Policy probably does not cover Faulty Workmanship.  Most construction companies, contractors and tradesmen aren’t even aware that such coverage is available.  When there is a mistake on the job arising out of faulty workmanship, materials or products you incur a major cost to fix such problems – not to mention the damage to your reputation and lost business as a result.  Your best move is to fix the problem.  With Faulty Workmanship coverage you hedge your losses for such mistakes.  You will have the ability to cover the cost of the mistake and your client gets the job done right.  You have saved your reputation and the client will call you again.

CALL US FOR A FREE RISK ANALYSIS AND POLICY REVIEW BY AN ATTORNEY

(818) 451-3878

Carpenters Insurance

As the owner of a carpentry business you take on many responsibilities. You probably spend most of your time at one job-site or another another. Whether you work with corporate customers or residential clients,you must keep track of each project and all of the details.  As part of of those details, you must make sure your business is fully protected.  Risk and liability can arise in many ways and you need to have the right  types of commercial insurance.  You need to make sure you cover other third partes in case they are injured as a result of the work you perform and make sure you cover yourself and your own employees in case of an accident or injury.

As an independent agency, FirstCapital can help you find the right insurance as we write insurance from various carriers through the business relationships that we have formed. Unlike other Insurance agencies FirstCapital is owned and operated by a practicing attorney in California who will provide a FREE RISK ANALYSIS AND POLICY REVIEW as part of their search for insurance.

  • Fast Quotes
  • Competitive Rates and Premiums
  • Quotes, Binding Authority and Insurance Certificate in Minutes
  • Surety Bonds

One Unique aspect of the construction business is the Action Over Claims that can render your business self-insured for injuries to your employees and the employees of your subcontractors notwithstanding any workers’ compensation insurance you may have.  If your current agent has not spoken to you about such gaps in coverage, or you do not know or understand what an Action Over Claim is, you need to call us immediately as we can insure you are covered under such instances.  Don’t be shy call us.  Most contractors do not know about Action Over Claims until it is too late and they are on the hook for all the damages of an injured worker.  But, remember you can insure against such risks.

Unlike many agencies we can generally write insurance for New Businesses and for those with a gap in insurance coverage.  Others won’t even consider you claim but we can generally write such insurance. Certainly any insurance history you have and time without claims will be considered as a credit to your advantage when the underwriters consider your premiums.

GENERAL LIABILITY INSURANCE (CGL)

All independent carpenters and small carpentry companies should carry general liability insurance. This coverage helps protects you from unexpected events, problems and potential hazards. If you work from a carpentry shop that customers visit, general liability protects you if someone gets hurt while they’re there. It also protects you if the customer’s property is damaged on your premises. It protects you from losses that might arise due to natural disasters, product liability and advertising liability as well. This is a solid, all around insurance plan for small businesses that grows with your needs.

BUSINESS OWNERS POLICY

A business owners policy (BOP) includes general liability and expands to cover business property as well. This insurance plan can be tailored to meet the specific needs of your carpentry company.

  • Equipment Breakdown – Whether you work from a stationary location or you go to each individual job, when your equipment breaks down it can be costly. Repairing or replacing the equipment may not be in the budget, and you can lose income if machines aren’t working as well. A BOP protects you from these types of failures by covering the costs of repairing or replacing your professional work equipment.

  • Buildings and Contents – When you work from a shop you rely on having the building available and fully functional so that your business can operate. You also may have important physical assets inside such as office furniture and workshop machines. A BOP can take care of the costs that come up when your buildings and their contents are damaged or destroyed, such as from a natural disaster.

  • Business Income and Extra Expense – If your business structures or content are destroyed you can lose a lot of income due to not being able to perform your work. A BOP can provide for lost business income or help you with the added expenses of renting temporary work spaces and machines.

  • Products and Completed Operations (Included in General Liability) – As acarpenter there may be times when you complete a job but it comes back with problems at a later date. If this happens, a BOP can be there to help.

  • Electronic Data – A BOP helps cover the expenses involved with recovering lost electronic data files that are critical to the operation of your business.

  • Newly Acquired or Constructed Buildings – As your business grows you may decide to add more workshop space or an area to display work to potential customers.

  • Valuable Papers Protection – If you keep valuable papers in your office, such as original blueprints or contracts, a BOP can protect you if those are damaged or destroyed.

  • Employee Dishonesty Coverage – Employee theft or dishonest practices is an unfortunate fact of business. Your BOP policy can protect you from losses caused by unauthorized credit card uses or funds transfers and tangible property theft among other things.

COMMERCIAL AUTO INSURANCE

Business auto insurance protects your company if there is an accident. It can cover vehicles used for business purposes even if they are not company vehicles.  You also may need Inland Marine Insurance which can protect equipment that is not intended on the road and other personal business property associated therewith.

WORKERS’ COMPENSATION INSURANCE

Workers’ comp insurance is required by law when you have employees. It protects you and them from having to pay for medical care and expenses if they are hurt on the job. We also will advise as to Action Over Claims as mentioned above.  Most Workers Compensation insurance exclude third party claims. Many time the General Contractor, or hiring contractor have created an unsafe workplace for the subs an they are responsible as third parties for the injuries to your employees or the employees of your subcontractors.  If the General Contractor or the Hiring Contractor has a Hold Harmless Clause in your contract (most do) that can put the legal responsibility for such claims back on your plate even though you have worker compensation.  You need to guard against such risk.  If you currently have an insurance agent they probable have never mention such risk or gaps i your current insurance.  Call us (818) 451-3878 and we can fully explain these types of risks that are very prevalent in the construction industry.

SURETY BONDS

Surety bonds act as guarantees that you can fulfill a contract. You may be required to be bonded before you can win a government or large corporate carpentry contract.

FAULTY WORKMANSHIP

Your General Liability Policy probably does not cover Faulty Workmanship.  Most construction companies, contractors and tradesmen aren’t even aware that such coverage is available.  When there is a mistake on the job arising out of faulty workmanship, materials or products you incur a major cost to fix such problems – not to mention the damage to your reputation and lost business as a result.  Your best move is to fix the problem.  With Faulty Workmanship coverage you hedge your losses for such mistakes.  You will have the ability to cover the cost of the mistake and your client gets the job done right.  You have saved your reputation and the client will call you again.

CALL US FOR A FREE RISK ANALYSIS AND POLICY REVIEW BY AN ATTORNEY

(818) 451-3878