On Friday, I shared a guest response to a reader question about life insurance. Many GRS readers rightly complained that it didn’t do a good job of answering the question. One reader — Mike from Four Pillars and ABCs of Investing — took it upon himself to write this response.One of the most common issues that people with any kind of dependents face is, “How much life insurance do I need?”. This is a tough question to answer in a simple equation; there are quite a few variables which affect the amount of insurance needed. First off, I’m only going to discuss term insurance. For most people, that’s the only type of insurance to consider. J.D.’s note: I said this over the weekend, and I’ll say it again: Permanent life insurance (such as whole or universal) is not a bad idea for everyone. For some folks, it absolutely makes sense. But for the average [...]...
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[Source: Get Rich Slowly]
