This article is very interesting, because the Madigans do not have kids and do not plan on having any, their need to have life insurance is much less than if they were to have kids. Based on the article it seems that they would rather spend the money on experiences rather than paying a monthly or annual premium for life insurance.
Well, kids do not solely determine the need for life insurance. Kelsey's has a higher living standard married to John because John's income is much higher. There is a financial downside for Kelsey if John dies prematurely that can be mitigated by the payment of a life insurance death benefit.
This article answers many peoples questions about life insurance and if they should buy it. The reasoning being is that this goes in depth of what is taken to account when it comes to valuing your life insurance and what its intended purpose is.
Growing up I always told my father that I want to own a motorcycle when I'm older and his response was always the same. "Make sure you buy life insurance and add me as a beneficiary." . At the time I didn't understand what this meant but after reading through this article. I now have a better understanding of why my father kept pushing this on me.
For our purposes, thought, life insurance fills a need to let an economic dependent remain at their same living standard. I am guessing Dad was not one of those.
I think you got his point. Be safe! Dad was making the bet to mitigate the pain of the tragic end of your life with some cold, hard cash. Income tax-free. I'd like to know, how much he would have bought!
This a great article of how life insurance should be thought about. It is interesting how it is dependent on each person in a household. I have never fully understood life insurance but this article sums it up well and has caused me to think about it more and at least consider it for later in life.
Thank you for your remark.....The need is measurable.....For many, it is $0. For economic dependents who rely on a high earner, the need for a large amount on the life of the high earner is significant!
This article is very interesting, because the Madigans do not have kids and do not plan on having any, their need to have life insurance is much less than if they were to have kids. Based on the article it seems that they would rather spend the money on experiences rather than paying a monthly or annual premium for life insurance.
Well, kids do not solely determine the need for life insurance. Kelsey's has a higher living standard married to John because John's income is much higher. There is a financial downside for Kelsey if John dies prematurely that can be mitigated by the payment of a life insurance death benefit.
This article answers many peoples questions about life insurance and if they should buy it. The reasoning being is that this goes in depth of what is taken to account when it comes to valuing your life insurance and what its intended purpose is.
Growing up I always told my father that I want to own a motorcycle when I'm older and his response was always the same. "Make sure you buy life insurance and add me as a beneficiary." . At the time I didn't understand what this meant but after reading through this article. I now have a better understanding of why my father kept pushing this on me.
For our purposes, thought, life insurance fills a need to let an economic dependent remain at their same living standard. I am guessing Dad was not one of those.
I think you got his point. Be safe! Dad was making the bet to mitigate the pain of the tragic end of your life with some cold, hard cash. Income tax-free. I'd like to know, how much he would have bought!
This a great article of how life insurance should be thought about. It is interesting how it is dependent on each person in a household. I have never fully understood life insurance but this article sums it up well and has caused me to think about it more and at least consider it for later in life.
Thank you for your remark.....The need is measurable.....For many, it is $0. For economic dependents who rely on a high earner, the need for a large amount on the life of the high earner is significant!