I’ve been asked on many occasions whether I think someone has enough life insurance. Of course the answer is “it depends.”

What is the age of the insured person? Is the insurance to cover debts? Does the insurance have an investment component? Has insurance been purchased to increase the size of an estate? Is the insurance to cover taxes on death?

I’ve often seen that when insurance has been purchased to cover taxes on death, other options haven’t been fully explored. What assets are in the estate? How liquid are the assets? Has an estate freeze been set up to fix the tax liability? Has a wasting freeze been contemplated, so the liability can be reduced prior to death?

It leads me to question whether people are seeking their professionals’ advice, and if their professionals have a broad enough perspective of their clients’ financial affairs and family relationships. I’d recommend exploring all options before making a commitment to pay life insurance premiums for a long fixed term or for the remainder of your life.