Dear Mr. Market:

We’ve used many quotes in the 91 letters that we have written to you over the last few years. They’ve covered a variety of topics and issues that investors are faced with as they attempt to navigate through the current economic environment. Today we look at a famous quote from one of our country’s founding fathers…

“In this world nothing can be said to be certain,

except death and taxes.”

          – Benjamin Franklin

Imagine if there was a product that addressed both death and taxes? Not to scare you away from this article … but there is. Individuals will typically avoid discussing it, if at all possible. The product is Life Insurance, owned by many but truly understood by few.

The Life Insurance industry has certainly not done itself any favors over the years. Individuals often experience a pushy sales process that is based on fear tactics and playing on emotions. Who really wants to sit down and discuss what will happen when they die? In an effort to serve individual needs, life insurance companies have created a plethora of products with different bells and whistles often leaving the potential client confused and completely overwhelmed. Rather than dig into the various products we will address 10 of the most common myths that are associated with Life Insurance and discuss their validity.

          1. Everyone needs life insurance

The two most basic needs that life insurance assists individuals with are: providing for dependents and covering estate taxes at death.   If you don’t have dependents or an estate valued over $5.43 million (for tax year 2015), you may not need life insurance. Throughout life your financial picture will change and your life insurance coverage needs to be adjusted as well; policies can be revised and cancelled, if needed. Continue reading →