Most people simply do not commit to keeping their life insurance in line with the purchasing value of the dollar. Most people are happy to get a raise or make more money, but they do not discipline themselves to periodically update their life insurance programs.
This is one of those topics you do not like reading about and I would prefer not addressing. Perhaps, because it is an uncomfortable subject to think about. But, the following reasons should be considered:
- Protecting your family’s standard of living and “preserving the things you want to do”; like your children’s education or your spouse’s retirement.
- Putting together a large enough emergency fund. Most people save far too little. Much of what they do save is in their 401(k) and should not be touched until retirement. You will find that the cash value account of a good life contract creates a lot of cash that can be tapped for the big expenses of life.
- You can learn to be your own banker. I’ll tackle this in my next “blog” article.
- We insure our cars and homes for full value….why not our lives?
Look at the cost of protecting those you care for, it will be less than you think.