Plan along with me: Scoring my life insurance

by Nick on August 9, 2010

Wise Bread posted an article asking how healthy is your life insurance plan, so I decided to take the test and post my results and a few words here.  For new readers, here is my current life insurance situation.  So how did I score?  Technically I got an 84 – one away from a perfect score.  But that’s with giving me credit for things that don’t apply to me or my policy.  Without those, I still “have a plan.”  Great for me.  Great for my family.

Some of the things doesn’t apply to me yet (like reviewing it every three years – I will, but I’ve only had my big policy for a year – I’ve had a smaller one provided by my employer).  But I plan to review it at least every three years. 

And some don’t apply at all.  (I know how to access cash value, but don’t have a cash-value, permanent policy.  I don’t smoke.  I never will.)

But taking that into account I still “have a plan.”  I’m comfortable with it.  I’ll keep up on it and make sure it remains appropriate for my family.  In case you’re wondering, the 4 points I took off are for discussing it with my financial adviser.  I don’t have one.  I read a lot.  I watch a lot of personal finance TV and listen to blogs.  So I made my decision based on that information.  Maybe I should have given myself half credit for that.  But that’s OK.  It’s not about “the math.”  It’s about having an adequate policy and making sure you keep up with it and reevaluate it from time to time.

So take a look at your insurance policies and whether they’re still right for you.  Maybe you need more.  Maybe you need less.  Maybe you don’t need insurance anymore (self insured for example). 

Keep your eye on the prize.  Until next time – put the credit card down and slowly step away from the mall!

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