Frequently, we misuse life insurance. Many people, for example, will look at it as a way to save for retirement. While it is true that life insurance can provide assurances that the stock market cannot, it certainly comes at a cost.

Not all insurance was created equally.

When assessing your life insurance needs, consider the following:

• What are the expenses I’m trying to insure against?
• How much income am I replacing and for how long?
• What adjustments happen for those that I provide for?
• Did I account for inflation?
• Are my needs static or do they change over time?
• What will the tax situation be for my estate?
• What can I afford to protect these priorities today?

Fundamentally, term insurance meets short term needs. So apply these premium savings to your assets. Ultimately replacing the insurance needs with actual assets.

In situations where your needs are long term, explore your options, you have several ranging from expensive-guaranteed options to less expensive-variable options, with little to no guarantee. Finally, assess your risk tolerance separately from retirement planning. Protecting your family carries a different set of goals than your retirement.

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Always remember that while this is an investor education piece, this does not trigger or relate to trading activity on your account with Financial Future Services. This article is for informational purposes only and not intended as a recommendation. Each investors circumstances are different and a full review of you situation is necessary for a recommendation.

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