For starters, it is essential to note that life insurance can be a complex subject, especially when it comes to the right “kind” and the right “amount” of insurance.
So what questions do you ask? Sometimes the important questions don’t come up when you click through those online life insurance calculators, and, unfortunately, less so with some insurance brokers. It can be a roll of the dice, whether you are in Overland Park or Denver. Forbes recently addressed this important issue in an article titled “What A Life Insurance Calculator Can't Tell You.”
Generally speaking, insurance exists so you can pay a “premium” now that you can afford to protect against the risk of a catastrophic loss later that you cannot afford. When it comes to life insurance, of course, the risk is to your family and loved ones if you were no longer there to care for them. Life insurance is a potent tool in this regard, but it is not the only tool to help protect for your loved ones in the event of your death.
The original article provides an excellent analysis of common “needs” that life insurance can protect. In the end, however, nothing can replace the advice and counsel of an experienced and qualified life insurance professional.
Remember: When making your financial, tax and estate plans, don't go it alone. Be sure to engage competent professional counsel.
Reference: Forbes (March 28, 2013) “What A Life Insurance Calculator Can't Tell You”