How Much Life Insurance Do You Really Need?

Hi! In yesterday's posting I pointed you to an article I wrote that aimed to help you Understand the Role of Life Insurance in your overall financial plan. If you haven't read that yet, you might want to, before focusing on the concrete steps that will finally allow you to answer this burning question:

How Much Life Insurance Do You Really Need?

I hope you find this article useful, too.

If you do, it might make sense for you to point out this message or that article to any of your friends who are currently under intense scrutiny by life insurance agents eager to make a sale!

That way, your buddies will at least have the basic information needed to make a sensible decision as to whether or not they truly need any more life insurance. Some will; some won't.

For those who do, at least after carrying out the simple calculations I outline in the article, they'll finally have a decent idea of how much more is necessary. It is silly to go overboard and buy too much life insurance because doing so channels funds away from the wealth accumulation part of the entire financial planning equation - which comprises three major components: wealth protection, wealth accumulation and wealth distribution.

When I spend time with my own consulting clients, I try and inspire them to look beyond their current financial challenges out toward a future when they are successful enough to be fully self-insured. It's amazing to watch a glint of hope surface in eyes that have long been clouded over by persistent financial burdens and fears.

I then often have to gently bring some of my re-inspired clients back down to earth by reminding them of the question that still needs to be answered. Happy reading.

Warmest regards,


Rajen


Rajen Devadason is CEO of RD Book Projects and its sister company RD WealthCreation Sdn Bhd. He lives in sunny, peaceful Malaysia with his gorgeous wife Rachel. He's a Malaysian Securities Commission-licensed financial planner, a life planning consultant, a professional speaker and a serial author... which probably explains why he's so exhausted! Some of his books are available here.