Life Insurance

Quote from phonic : Uhhhhmmmm no. ONE of the purposes of life insurance is to replace their income for dependents. Their spouse may not be the only one this includes. Maybe they have special-needs children? Maybe their grandkids live with them? You simply said that if he didn't have a wife, "screw it". Additionally, another component of life insurance is to cover all of their outstanding debts when they pass away. Granted if they have no real debts, or don't have any major assets (with liens) that they want to pass on to their children, or if defaulting on any debts is irrelevant, then that's fine. However, most people may have a home with a mortgage or other similar financial scenarios. Or, as I stated earlier, maybe they have a joint line of credit with another (surviving) family member. If they don't want to saddle them with all of the repayment obligation, they would need money to settle their estate. This is very important, though a bit morbid, for your own children. If you co-sign a student loan, you better make sure you can afford to repay it in full if they die before doing so themselves - or get life insurance on them to cover it. There are many horror stories of parents losing a kid, only to find out that they now owe ~$50k+ for all of their student loans. Not a good situation to be in to say the least. And yes, funeral expenses can be costly. A basic cremation and small service could still be $5-10k. And what if you want a big elaborate event and expensive plot? Unless you have the money for it left over in your estate, who do you think is going to pay for it? Again, replacement income is just one component.

It is not his responsibility to support other kids lives. Save and invest and self insure.

Quote from saladdin : That is exactly what life insurance is for. Replace income. Not to leave inheritance. If he saved and invested then nothing to worry about. If not, he should use all DI to support himself and enjoy the rest of his life. Besides, odds are he will end up in a home and have to stop paying the policy to survive. Come on, use some logical thinking.

Quote from saladdin : It is not his responsibility to support other kids lives. Save and invest and self insure.

Apparently, you didn't read any of what I said.

I never once stated that it should be used an "inheritance". I said, clearly, that it can be used to PROTECT his families inheritance as well as INSURE that if he has any debt obligations that could affect his family, that those are taken care of.

There is a big difference between
"Yay! Grandpa died and left us with a million dollars of insurance! Now we can go shopping!"
versus:
"Thank god Grandpa had an insurance policy that was able to ensure that his bills could be taken care of for his wife, that she will be able to survive financially after he passed, and that all of his outstanding credit cards and lines of credit were able to be paid off."

I think you need to use some logical thinking yourself. What if he has a joint credit lines (credit cards, car loan, mortgage, HELOC, etc.) with his wife, and their repayment of those lines of credit are dependent on both of their incomes (social security, pensions, etc.). If he dies, she could be left holding the bag for all of that. Not only could she lose the house, car, etc., but her credit could be destroyed. Which in turn might force her to move in with their children or go into an assisted living facility (possibly a cheap crappy one).

Again, as I've stated twice already, insurance is important for a variety of reasons. Those reasons don't all apply to everyone equally - but they should be taken into consideration. The younger you are, and the more your income is vital to your family, the more important it is.

Unless you just don't give a shit about anyone and don't care what happens to them after you die. In that case, I guess your logic would be applicable.

I said no wife , screw it. I never said screw it if he had a wife. Wife then get coverage.

If you read more instead of writing blowhard paragraphs you may learn more.

When I'm dead, I don't care. Raise your kids to take care of their self and not on Gramp's death money. Weird concept for parents like you to understand.

Quote from phonic : Uhhhhmmmm no. ONE of the purposes of life insurance is to replace their income for dependents. Their spouse may not be the only one this includes. Maybe they have special-needs children? Maybe their grandkids live with them? You simply said that if he didn't have a wife, "screw it". Additionally, another component of life insurance is to cover all of their outstanding debts when they pass away. Granted if they have no real debts, or don't have any major assets (with liens) that they want to pass on to their children, or if defaulting on any debts is irrelevant, then that's fine. However, most people may have a home with a mortgage or other similar financial scenarios. Or, as I stated earlier, maybe they have a joint line of credit with another (surviving) family member. If they don't want to saddle them with all of the repayment obligation, they would need money to settle their estate. This is very important, though a bit morbid, for your own children. If you co-sign a student loan, you better make sure you can afford to repay it in full if they die before doing so themselves - or get life insurance on them to cover it. There are many horror stories of parents losing a kid, only to find out that they now owe ~$50k+ for all of their student loans. Not a good situation to be in to say the least. And yes, funeral expenses can be costly. A basic cremation and small service could still be $5-10k. And what if you want a big elaborate event and expensive plot? Unless you have the money for it left over in your estate, who do you think is going to pay for it? Again, replacement income is just one component.

Methinks you're replying to the wrong person because I didn't say "screw it" or anything about not having a wife. I will, however, address your points.

All that "grandkids" and "special needs children" stuff falls under this:

Quote from Brian1 : The purpose of life insurance is to replace someone's income (or service that would cost money if that service disappeared, such as a stay-at-home dad) for those who depend on it. If he has no children who depend on his income, there's no need for life insurance.

Regarding dying and leaving a house with a mortgage, the children sell it or disclaim the inheritance.

Regarding a funeral, if you're a member of your local funeral society, your cremation or even burial will be far less than $5,000 - $10,000. Past that, if the survivors want a more expensive funeral, the burden falls on them just as if they wanted anything else it would be their responsibility to pay for it.