WHAT IS INSURANCE PLANNING?
Life Insurance
The risks that involve life insurance are the risks of a premature
death or the risk of dependent old age. Premature death occurs
when the death takes place while others remain dependent on the
individual’s income. Dependent old age is the risk of outliving one’
s income, that is, the risk of retiring without adequate assets to
cover living expenses during the period of retirement.
Life insurance can help provide for your dependents in the event
of your death, possibly covering such obligations as liquidity for
estate administration and taxes, mortgage debt, college expenses,
child-care costs, family income, and retirement income. A detailed
life insurance needs analysis can help determine the coverage and
type of policy right for you.
Assessing Your Life Insurance Needs
You can insure against some major risks and protect yourself from
some major losses. You probably already have insurance for your
car and home, but what about insurance for your life and your
ability to work? Also, are you insured adequately to cover
expenses for retirement?
Before reviewing the details of the different types of life insurance
policies, it is important to determine whether you have a need for
life insurance. Your need for life insurance is dependent upon your
financial situation and your goals. An insurance agent can help you
in examining both your financial situation and your goals to
determine whether you have a need for life insurance coverage,
and, if you do, how much coverage you should consider.
| For an endless streams of income, you need a financial plan |
"Wealth Creation Through Financial Planning"
