As always, the simplest approach is best. That’s especially true when it comes to thinking.
Suppose there is a loss if someone dies. It could be the loss of income that matters. If a working person is no longer available there is a need for capital working. It could be the taxes and other costs triggered by the event. Those will be paid with cash which the estate may or may not have. Could be both.
The question is where will the cash come from?
Avoiding the life insurance option leaves the problem and saves the premiums. It is merely a choice of who pays the cost. The now living person or the survivors.
It is if you stay alive. Not so much if you don’t. Remember that someone is always “insurance poor.” It could be you or it could be those left behind. Your real question involves that choice.
“If we can’t tolerate a possible consequence, remote though it may be, we steer clear of planting its seeds.”
If you think it is important to steer clear of the survivors are insurance poor problem, you shouldn’t plant the seed. Arrange some life insurance. How much is just an arithmetic question. What kind follows from your time and resource context.
Find a competent advisor and work it out.
It is the perceptive thing to do.
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