September 2016

One of the first lessons of finance we are taught, by our parents or through some basic personal finance course, is to make creating an emergency fund our top priority. Having a reserve of cash equivalent to six to 12 month’s worth of living expenses is considered the most fundamental principal of financial security.

We view goals as life’s destinations, whether it is where you want to be at the end of the day or at some point in the distant future.

Most people couldn’t bear the financial hardships resulting from unexpected events, such as a major house fire, a car accident, a disability or the premature death of a family breadwinner, which is why one of the most important component of a sound financial plan should be your personal risk management strategy.

Most people are familiar with the basic concepts of life insurance and understand that some level of protection is a necessary part of modern financial life.  The question of what life insurance can actually accomplish, when considered as part of an overall financial plan, is more involved and worth a closer look.

Universal life was introduced nearly three decades ago as an alternative to whole life insurance which had been gradually losing favor due to its low rates of return and its inflexibility as a financial management tool.  With interest rates on fixed yield investments reaching as high as 18%, life insurers were under pressure to attract more premium deposits with a product that could compet