Category Archives: Insurance

How Much Life Insurance Do You Need?

From Rick Kahler

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 is one way to help answer that question. It is not a formula, but a very rough checklist to help you estimate your individual insurance needs. For couples, I suggest separate lists. Not all of the information will be the same for each spouse.

First, list the following: Continue reading

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Life Insurance: Three Things to Know

From Rick Kahler

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.

1. Not everyone needs life insurance. You probably don’t if you are single, financially independent, don’t have large debts, or own property or a business that will be liquidated upon your death.

You need life insurance only if anyone would be put at risk or suffer financially because of your death. Here are four circumstances when insurance is typically necessary: Continue reading