In Alice in Wonderland, the Cheshire Cat tells Alice, "If you don't know where you're going, any road will get you there."

The Cheshire Cat is really talking about setting goals. Do you have them? If you don't have them, you have little hope of reaching them. It's a general truth that certainly applies to life insurance. What do you want your life insurance to do for you? Give your beneficiaries enough money to take care of your funeral expenses? Pay off the mortgage? Provide an income? If so, for how many years?

Many employers will offer employees a life insurance benefit of two-or three-times the employee's annual salary, and that's reassuring to some people. However, what happens to those who depend on you after year three? Will your spouse now be able to replace your lost income year after year?

Failing to create a plan to meet your life insurance goals could irrevocably alter the lives of your beneficiaries after your death. Admittedly, contemplating ones' own mortality is not something any of us want to talk or think about. However, avoiding the topic is not really a responsible option.

When people were surveyed¹ about why they had never purchased life insurance, the top five answers were these:

1. Cost
2. Difficult to decide how much to buy
3. Procrastination
4. Making the wrong decision
5. Using money for other things

Numbers one and five both fall into a spending category. It's far more exciting to buy a new plasma television than pay a life insurance premium. This dilemma is one of immediate gratification vs. long-term planning.

The middle three reasons are more interesting because they are easily solved. Most people consider buying life insurance a daunting proposition and so they put it off. Term or permanent insurance? How much is enough? How much is too much? How do I calculate my needs? What if I miscalculate?

The Cheshire Cat's comment sheds light on such decision paralysis: find yourself a map and consider possible destinations. In this case, the map is a professional who can help you understand your choices and define your coverage. Your Northwestern Mutual Financial Network representatives will ask you a series of questions about what you would like your coverage to do. Together, you will identify the amount of coverage you will need to achieve your goals.

As your house grows in value, your homeowner's policy should keep pace with that value. Most people wouldn't insure a $225,000 house for only $100,000 and simply run the risk of paying the difference if the house burns down. If your house appreciates, you naturally increase your insurance to cover its value.

The principle is the same with life insurance. How much coverage do you need now? This figure may grow as your children approach college. Replacing the income you will earn 20 years from now might be quite different than replacing today's.

Contact your financial representative to help you sort through all of these matters — either for the first time or to review an older policy that may not meet today's needs. Together you can work out a solution that takes you where you want to go.