Setting Up Your Consulting Practice

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Topic: Getting Life Insurance

Life insurance protects your business legacy and your family’s financial future — crucial as you launch and grow your independent consulting firm. But shop around. Prices vary significantly.

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Obtain life insurance. So, your previous employer may have provided some life insurance, but it probably was only active while you were employed there. Going through a transition in life, it’s a good time to re-evaluate your life insurance coverage. Look at the existing policies that you have. See how long they’re good for and see if that coverage is still adequate given the size of your family today and how much you’ve been earning recently. If you obtained a policy much earlier in your career… Maybe you follow the thumb rule of getting, you know, ten to fifteen to twenty times your annual salary. But if your salary has increased over time you may find that that would not meet your financial needs today.

In Episode 178 of Unleashed, I interviewed an expert in life insurance, at the firm Policy Genius. So, if you want more on life insurance you might check out that episode. A few tips that I took away from that are probably not a big surprise to you. Whole life policies are pretty much not a useful product for most of us. Unless you have a very large estate that might be subject to estate taxes or if you have a special needs child that you want to be able to take care of. Whole life policies can help with those needs. But for most of us, a plain vanilla term life policy is the best bet.

The second thing I learned was it really does make sense to shop around. Because different insurance companies will have different ways of pricing your policy. And you may, even with two different firms with the same credit rating and score, you may get very different pricing. So, it’s worth shopping around.

So, take the time now that you’re going through this transition in life. Evaluate your life insurance needs and get life insurance. Make sure your family is protected