Simplicity is a powerful concept
June 9, 2020 by John Spoto
In my last article, I discussed how simplicity can improve your ability to make better financial decisions, and about the importance of being properly insured. Let’s continue to talk about life insurance and also examine the role estate planning plays in simplifying your financial affairs.
Two additional points are worth making about life insurance. First, keep your analysis of how much insurance to buy simple. No formula can yield the precise amount of coverage you’ll need. Complicated calculations will not produce an insurance amount any more accurate than a straightforward, common-sense approach. Second, stick with a product you understand – in most cases that means a simple, reasonably priced term policy in which you pay a premium for a certain number of years and for a specified death benefit. If you die during the term of the contract, the insurer will pay your heirs the death benefit. If you live until the end of the term, the insurance company pays nothing.