Today I read an article on KSL.com where a Salt Lake financial planner reported that "the number of individual households carrying life insurance is at its lowest rate in 50 years." As a father of four children and a husband whose wife does not work outside the home, adequate life insurance is a key part of my own estate plan (and as a Salt Lake Estate Planning Attorney having adequate insurance is on my mind frequently when considering my own estate plan). Should something happen to me, I would want my wife and children to be able to maintain their current lifestyle. In my case, without adequate life insurance, I do not think that would be possible.
I understand that many people are simply opposed to insurance, and that many people have different views on what works best when it comes to life insurance. I respect that views are different. However, now matter how much you might dislike paying for insurance, it can frequently be acquired for a relatively low cost. I strongly encourage clients to consider their needs for life insurance on a regular basis.
One more thought on life insurance. With the current uncertainty about the estate tax (calculate your potential estate tax exposure here), life insurance can be a great wealth replacement tool where your estate might be subject to estate tax. The value of life insurance that eliminates or reduces estate tax is substantial--generally including a return on dollars spent on the policy compounded by the estate tax savings (through the use of an Irrevocable Life Insurance Trust, we can usually remove life insurance proceeds from being subject to the estate tax--without such a structure having been properly implemented by a qualified estate planning attorney, those large tax savings will not likely be available.
If you have questions about life insurance, call your agent today. Of course, there are a number of great insurance agents I work with on a regular basis in the Salt Lake metro area, and I'd be happy to give a referral of an agent that would best service your needs and individual situation.