Life Insurance Needs To Be Calculated
I had a different type of life insurance problem this week.
The couple, aged 62 and smokers, needed $210k to cover a mortgage as co-owners and co-mortgagees. Both have been told that they definitely should be covered by joint first to die life insurance policy.
However, the premiums were beyond their financial reach. And beyond their need also I soon calculated. One partner was contributing only a small amount to the financial pot each month, so why did this partner need coverage at all?
I reasoned and they both agreed, that the loss of this partner would be emotional, not financial. While it was preferable to insure both, it was just not financially feasible. Comments?
The couple, aged 62 and smokers, needed $210k to cover a mortgage as co-owners and co-mortgagees. Both have been told that they definitely should be covered by joint first to die life insurance policy.
However, the premiums were beyond their financial reach. And beyond their need also I soon calculated. One partner was contributing only a small amount to the financial pot each month, so why did this partner need coverage at all?
I reasoned and they both agreed, that the loss of this partner would be emotional, not financial. While it was preferable to insure both, it was just not financially feasible. Comments?
posted by Ivon T. Hughes at 10:09 AM
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