Life Insurance – Cover your Basics

Tell me when you are going to die and I will tell you what to buy.  Seriously, you need to be able to look at pricing versus  how much insurance you need to cover your basics for a certain period of time.  Don’t overbuy insurance.

Our thoughts around Life Insurance;

  • We believe in protection-based life insurance –life insurance and investments should not be combined for most people
  • You are generally covering, your home, your children and your income
  • A Rule of Thumb is to buy coverage that is at least 7x your income
  • Employer-provided coverage is solid but can have shortcomings (deeper dive)

We usually recommend considering Life Insurance for 3 scenarios:

  • You have a life event such as having a kid or having a mortgage (list of life events)
  • To cover the basics of your financial plan
  • Business planning