One of the first financial instruments that one takes is a life insurance policy. Yet, chances are that one is not adequately insured for the life insurance policy to do justice. The life of an individual is priceless, and although one may not be able to arrive at the precise quantum of cover that one should take, one should not go under insured either. The problem with most people is the wrong assumption on the true worth of their lives, resulting in gross under insurance when it comes to life insurance policy. One of the reasons for being under insured is to wrongly assume life insurance as a savings and investment tool instead of a financial protection tool.