Sometimes I cringe at articles that seek to "inform" the public without recognizing the potential complexity and ramifications of the topic. The author is a "personal finance writer" but is she a licensed insurance agent or certified financial planner? I doubt it.
My point is that life insurance isn't something that someone should read a web article about and make such an important decision. She makes it sound like a consumer can "do their homework" to learn about the subject. In reality, a one-on-one consultation with a knowledgable professional is still absolutely necessary. This isn't buying a sweater. Since licenses are required to sell insurance products, this is closer to considering surgery than it is to buying socks. Don't try to make it sound like someone can make their own "informed" decisions about what they learn on the webz in a few hours.
And yes, the 7x-10x figure is just too ambiguous since the amount of insurance someone needs is very personal to circumstances. And incomes change over a lifetime.
But I did learn something. SPENDING is a pillar of financial well-being. 
"While insurance, alongside saving, spending, and investing, is one of the main pillars of financial well-being ..."
@Aim_High wrote:Sometimes I cringe at articles that seek to "inform" the public without recognizing the potential complexity and ramifications of the topic. The author is a "personal finance writer" but is she a licensed insurance agent or certified financial planner? I doubt it.
My point is that life insurance isn't something that someone should read a web article about and make such an important decision. She makes it sound like a consumer can "do their homework" to learn about the subject. In reality, a one-on-one consultation with a knowledgable professional is still absolutely necessary. This isn't buying a sweater. Since licenses are required to sell insurance products, this is closer to considering surgery than it is to buying socks. Don't try to make it sound like someone can make their own "informed" decisions about what they learn on the webz in a few hours.
And yes, the 7x-10x figure is just too ambiguous since the amount of insurance someone needs is very personal to circumstances. And incomes change over a lifetime.
But I did learn something. SPENDING is a pillar of financial well-being.
"While insurance, alongside saving, spending, and investing, is one of the main pillars of financial well-being ..."
Did my sarcasm meter just go off?
IMHO life insurance is never really "worth it". It's like gambling in a casino. The house always wins.
That being said, it's something many of just feel that we have to do.
But "worth it"? Never.
@SouthJamaica wrote:... The house always wins.
... But "worth it"? Never.
But the house doesn't always win, @SouthJamaica. Those who buy the policy to protect their loved ones and then die an early, unexpected death "beat the house." The family reaps the benefit of a far greater lump sum than was paid. Actuarial tables make sure that the insurance company brings in more money overall than they give out, but they have to do that to stay in business. Individual policyholders can come out far ahead.
I've heard criticism of life insurance comparing it to investments, but life insurance isn't an investment. For those of us who started a family in our 20's or 30's, were the primary breadwinner, and wanted to make sure the family was provided-for if something were to happen, life insurance was definitely "worth it" in providing peace-of-mind even if it were not needed.
I had an investment adviser set me up early-on with a combination of permanent whole life and a larger portion of decreasing term combined with investments. The idea is that as investments and net worth grow, the need for insurance declines and the family is always protected financially. I think whole life is underrated by many consumers who are shopping for whatever is cheaper without considering other options and their overall financial plan.
For someone who is single and has enough money or prepaid burial burial expenses set aside for final medical bills, debts, and burial expenses so as not to burden their family, life insurance may be an unnecessary expense. For families protecting the financial interests of a surviving spouse and/or children, it can be invaluable.
@Aim_High wrote:@SouthJamaica wrote:... The house always wins.
... But "worth it"? Never.
But the house doesn't always win, @SouthJamaica. Those who buy the policy to protect their loved ones and then die an early, unexpected death "beat the house." The family reaps the benefit of a far greater lump sum than was paid. Actuarial tables make sure that the insurance company brings in more money overall than they give out, but they have to do that to stay in business. Individual policyholders can come out far ahead.
I've heard criticism of life insurance comparing it to investments, but life insurance isn't an investment. For those of us who started a family in our 20's or 30's, were the primary breadwinner, and wanted to make sure the family was provided-for if something were to happen, life insurance was definitely "worth it" in providing peace-of-mind even if it were not needed.
I had an investment adviser set me up early-on with a combination of permanent whole life and a larger portion of decreasing term combined with investments. The idea is that as investments and net worth grow, the need for insurance declines and the family is always protected financially. I think whole life is underrated by many consumers who are shopping for whatever is cheaper without considering other options and their overall financial plan.
For someone who is single and has enough money or prepaid burial burial expenses set aside for final medical bills, debts, and burial expenses so as not to burden their family, life insurance may be an unnecessary expense. For families protecting the financial interests of a surviving spouse and/or children, it can be invaluable.
The house always wins in the aggregate, not on each bet or on each policy, but the odds are fixed so that overall the house always comes out ahead.
