• 16
  Mar
  2010

• Deciding on Life Insurance: Some Ideas

  
  Filed Under: Blogging
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Insurance is known as the one thing that everyone loves to hate. Like it or not, you have to deal with insurance. Among insurance plans, life insurance plans take the cake in terms of undesirability. You hardly want to contemplate your own mortality, let alone consider the merits and demerits of whole life insurance, term life insurance, and universal life insurance.

However, insurance might represent a large chunk of your investment (especially if you choose whole life over term life insurance), and like any investment, it requires prudence and monitoring. You will need to ensure that you have adequate insurance, and not more or less than you need.

To do that, it’s a good idea to set aside a day in your planning calendar to plan for, discuss and review the insurance you have, once every year. This is best done around tax planning time, so that you include that component into the plan as well. During this review, consider any new additions to your responsibilities. Doing so truthfully will help you make the right decision with regard to insurance. Involve all family members who have a role to play.

Some of the circumstances you might want to consider are: Has your mother been admitted in a nursing home, with her care partly burdened by you? Is your daughter in high school, and looking for admission to an Ivy League school? Are you planning a second child, and will that affect your wife’s earnings? This plan can help decide the right insurance mix for you, so that your family is covered, at least financially.