Tag Archives: life insurance

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Life Insurance Needs Analysis App

This is the sixth exercise in a series designed to walk you through an entire financial plan.  The exercise is embedded in an Excel spreadsheet you can download and save for personal use.  You can find the backdrop for the exercise HERE or just jump right in with the instructions given below:

This app is designed to help you determine what your life insurance needs are for final expenses, debts and mortgages, education, and income replacement.  If you conclude that you have policies you don’t need or want, and you’ve confirmed your research with an independent planner who does not accept commissions on the sale of life insurance, then you should have several options for terminating your policies.  These will differ from policy-to-policy, so check with your insurer.  But don’t make those decisions hastily.  Even if you shouldn’t have purchased the whole life insurance policy you bought 15 years ago and don’t need or want it now, in some instances it will make sense to keep it.

Requesting an “In-force Life Insurance Illustration” and a “Policy Cost Basis Report” from your agent (or the insurance company’s home office) will help you and your independent planner determine whether the policy should be kept or surrendered based on the investment value, future prospects for growth, stability of the insurer and tax consequences of liquidating.

Additionally, if you are considering replacing a current policy with a new policy that is more appropriate or economical, it is very important that you do NOT cancel any existing policies until you have received and paid for the new policy.  This is to ensure that no issues arise throughout the course of your underwriting that would disqualify you from receiving the new insurance policy.

Especially in these economic times, it is important to ensure that every dollar of yours is working hard for you, and that includes the dollars channeled toward life insurance.

Click HERE to access the app!

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The Economic Bias of Life Insurance Agents

In our second 90 Second Finance installment on the topic of Economic Bias—a conflict of interest where money is involved—we tackle the bias in the financial realm most often stereotyped: the life insurance agent. There are many great, trustworthy agents out there, but there’s no denying their Economic Bias is a big one. Of course, it might not be what you think it is…

(Click HERE if you missed the introductory 90 Second Finance video on Economic Bias.)

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Life Insurance Part 2: HOW?

Just this past Thursday, we dove into the topic of life insurance with the not-so-existential question—WHY?  What is the case for life insurance at all?  If you didn’t take (a little over) 90 seconds to watch that one, you can do so by clicking HERE to see my list of life insurance “NEEDS” (those things that would be required to keep anyone you leave behind on track financially) and “WANTS” (those things that could better be described as “bells & whistles” in life insurance planning).

Today, we provide you with a primer on HOW you can begin to calculate an appropriate amount of life insurance for you as well as the type of insurance that would best suit your needs.  We hope you both learn from and enjoy “Life Insurance—HOW? (in 90 seconds).”


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WHY Do You Need Life Insurance?

Life insurance is a heavy topic with all sorts of emotional baggage and economic bias surrounding it. While some over-simplify the process (suggesting a mere multiple of one’s salary as a recommendation), many over-complicate it on a quest to make a big commission through the sale of a bells-and-whistles life insurance policy.

It’s a challenge to summarize this topic at all, but that didn’t stop me from trying… This 90 Second Finance video is Life Insurance, Part I: WHY? and I’ll be following that with Part II:HOW? this coming Monday. So how about dedicating 180 seconds to better understand the role of life insurance in your financial realm?