Rather than talk with a high-pressure insurance agent, you might be tempted to simply start plugging numbers into one of the many life insurance needs calculators out there on the Internet. But even if one asks all the right questions, it can be tough to decide the answer to these “life and death” questions on the spot if you haven’t thought them through in advance.
Buying insurance for certain items, such as a home or car, can be pretty straight-forward and easy to calculate cost-wise. But how do you insure your life? Life insurance is more than just number crunching; it’s about financially providing for your loves ones when you are no longer here.
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. 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 event 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 far from the only tool to 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.
Reference: Forbes (March 28, 2013) “What A Life Insurance Calculator Can't Tell You”