It does not take into consideration factors such as taxes and inflation, and it assumes that the money is invested in a manner that provides the Wife with the liquidity to access her funds when needed. Consider what happens when inflation is added to the equation. Assuming an inflation rate of 4 percent, the investment producing 10 percent interest has a real return of 6 percent. Other factors, such as funding college for her two children, could further complicate the family's life insurance planning needs. Other financial needs that can be foreseen should also be factored into your planning if the objective of your life insurance is to provide complete financial protection.
Consumers tend to think of their insurance coverage only during times of personal misfortune.
To protect yourself, your family and your business, you need to plan ahead. It's too late to plan after an accident happens. N.J. He is a registered representative of Allmerica Investments, Inc., a registered broker-dealer.