Very often we are dealing with life insurance sales agent, they explain importance of having life insurance, they are very fluent in describing their products and they are very eloquent when asked about the insurance process, from filing to issuance of a life insurance policy is, of course, along with facilities inherent therein.

But when we ask how a reasonable sum assured? Explanation to this point they are generally not as good as the previous explanation, generally they are still able to ask the amount of premiums paid annually prospective customers. Well to avoid this condition is useful to discuss some of the methods commonly used by a financial planning anywhere in the world, but before those us as a candidate for life insurance policyholders should now have:

1. Economic value that is a result of the income year in which the value we averaged in each month, or for an employee is the amount of net take home salary home. For our purposes, we focus only on the economic value rather than simply whether or not the salary.

2. The presence individuals other than our own highly dependent on economic value, such as wife, husband, son, brother, sister or parent who has retired.

3. Funds other parties concerned in the business activities, such as personal loans outside the bank debt or other financing institution that has no life insurance. So when we plan to conduct a credit loan from the bank or financial institution then we must ask whether there is life insurance.

So not worth it if we buy life insurance with the following requirements:

1. Lack of economic value

2. without other people who depend on us

3. Hooks absence of loan debt

How to calculate the optimal rise, here is the explanation most frequently used method

1.Metoda Human Life Value, this method of calculation of the absolute increase calculated based on the average income every month in a year and multiplied by the expected duration of the fund sustain life until the beneficiary is able to obtain their own income. This method does not need to consider funding the growth factor if the increase is kept in a bank or other investment institutions.

2. Metoda Income Based Value, this method is the calculation the increase calculated based on the average revenue every month in the round in a year and then divided by a factor of growth of funds for such increases must be deposited in investment institutions

3. Metoda Financial Needs Based Value, this method is more specific to protect the future financial needs egg education funding. In practice, to avoid paying a huge premium then this method can not stand alone but must be combined with a constant monthly investment (annuity) on an investment instrument that has an average return on deposits. It should be noted this method is different from the two previous methods, but this does not protect income in the future financial needs.