Great Financial Plans Do Not Require Life Insurance
How to know when you need it
Agents and some financial advisors will say, “life insurance is a topic most don’t like to discuss, it deals with death, after all. The product isn’t purchased. It is sold.” Unfortunately, that trivializes actual consumer behavior as if potential life insurance consumers are not mindful about how to value such a purchase. Health insurance is in high demand, particular among those who are middle age and older. Indeed, many other personal insurance coverages are in high demand. Homeowner’s insurance is purchased to protect lenders and the household balance sheet from wildfire, tornadoes, and hail. Auto insurance helps when an insured runs a red light and hits a pedestrian, or is caught in a riot and has their car overturned. Like death, the prospect of any of these perils isn’t particular attractive. But, many people are not jumping on life insurance policies regularly because they are discomforted by the conceptual motivation? Hogwash. The demand for life insurance is well understood and economic principles offer the solution to the question, “How much life insurance do I need.”
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