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Do you have too much life insurance?

People used to say you should have 10 times your earnings available as life insurance. I think they are wrong. Here are three things you should consider.

• Your net worth
• How the insurance money may be used
• Every estate should have some insurance

Life Insurance is a safety net for your family when you haven’t had the time to build your own. Consider this, if you are young with dependents and have a fair bit of debt, you will need more money than if you are retired, living debt-free and enjoying your grandchildren.

How the money may be used is important as well. Some insurance policies have tax advantages and estate planning provisions to bypass wills and streamline an estate. Sometimes survivorship is the main concern, for example, a young family with debt and children may need a different plan than someone who is retired. A clear understanding of your options will help you choose an insurance package that best meets your needs.

Time and again, every estate I’ve worked with that has insurance has been much easier to manage. Loved ones left behind have been in better financial shape than those without an insurance plan – regardless of age. Experience has shown me the value of an insurance plan. I think everyone should carry some insurance.

It’s important to note, any recommendation on dollar amounts need to be personalized to meet your needs. If you are looking at life insurance, you should consult a professional to make a better, more informed decision.