Some of the typical reasons for life insurance are to replace a breadwinner’s salary, pay off large debts, and pay estate taxes. Another reason to carry life insurance—if it’s the right kind—can be to fund a retirement plan. To illustrate, let’s imagine a couple, both 55, with two grown children, two good jobs, and no […]
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Life insurance is an important financial planning resource. However, it is not meant as a source of income. Its primary purpose is to provide the means to replace income or to pay taxes or debts. Not everyone needs life insurance. Once you determine that you do, the next big question is how much is appropriate. […]
Here are three points about life insurance that many life insurance salespeople would prefer you not to know: 1. Not everyone needs it. 2. Those who most need it are often least able to afford it. 3. It is not a good investment. Let’s take a deeper look at each point.
Here’s a risk to your financial health that may surprise you: following poor financial advice or buying expensive investments from relatives and friends. There are two reasons for this. First, we tend to trust and rely on people we know. Second, research finds that humans have a deep-seated desire to meet the needs of others, […]
The stage in life when most adults have the most need for life insurance is when they are parents and their children are young. Unfortunately, this is often a time when financial resources are already stretched. Unlike health insurance and house payments, life insurance can easily be regarded as optional rather than a priority. To […]