Do You Have Enough Life Insurance?

I wanted to make this impromptu video after seeing how little life insurance most people have (not enough).

Stay tuned for an upcoming podcast where I walk through in more detail on how much life insurance is appropriate.

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 Hey, impromptu video, almost an emergency video. I, as I’ve mentioned many times, am seeing a ton of financial plans right now. A lot of them from people in their late 20s, 30s, etc. starting out, getting established. To be honest, I am shocked at how few people as a percentage have the proper amount of life insurance coverage.

Almost nobody. A lot of these people have done it on their own, figured it out. Some have even tried to do it the right way, going online, looking for tips. They’ve still got it wrong. They’ve still got too little coverage. A couple of times they’ve gone to an insurance agent. Hey, to the insurance agent’s credit.

In both cases, they’ve done an excellent job in terms of type, general advice about amount. They still sold them too little life insurance. You need more life insurance than you think for a lot of reasons we’ll get in. You’ve got to be able to overcome inflation. You’ve got to remember the capital pool that you get from the insurance spins off money, but you have to pay tax

on that money before it can come into your hand. There’s all kinds of other things to think through. We’ll do a longer video on this. I’ve always enjoyed teaching it. Haven’t done it in 15, 20 years, but timeless message, timeless approach. So I’ll get back to it in another two or three weeks. And we’ll put together a short podcast on it with just me on, try to contain your excitement, going through how to make this calculation.

One of the biggest things that jumps to me, two, actually, I want to give you. Entrepreneurs, especially, holy smokes. Many of them have almost no insurance coverage. And they need a lot in many instances. They have debt. They have a mortgage at home. They have young kids. The second thing I’m seeing is the lower income earning spouse.

A lot of times people aren’t putting any coverage on him, any coverage on her. They’re still providing a very important income to the financial plan of the family in terms of paying down the mortgage, handling the bills, etc, etc. This is a big problem. So we’re going to come at it in the next two or three weeks.