Williar, with all respect, that's just bad advise and ignorant to say
I understand your message as "many people buy life insurance for the wrong reasons, and the ones that do buy, buy too much". I can agree with the first part.
In reality, most people are underinsured and/or buy the wrong type of policy. Bottom line is if someone depends on your income, they will need a source of income available to maintain their present lifestyle in the event of your death. For most people, that source is funded by life insurance.
If I died tomorrow without life insurance, my family would face financial hardship, unneeded stress (in addition to the grief of my recent death), and significant lifestyle changes. Sure, my wife might get married (nothing would make me happier than to see her taken care of) and be financially supported. But, she better start marketing herself darn fast because the emergency savings would be exhausted in about 6 (maybe 9 months if she skimps on my funeral and diapers for the baby). At the same time, she better brush up that resume to get a decent paying full time job, find adequate and affordable daycare, continue funding her retirement and our child’s college fund, sell the house and move into something more manageable for single parent, etc. And this is only touching on a “few” changes.
As for the family “blowing” the life insurance windfall, this is easily addressed through proper estate planning where you would clearly specify distribution of assets. I feel that I have taken the proper steps to insure my family’s happiness in the event of my death. I know that if and when I’m in my death bed, I won’t have to stress about their financial welfare. That’s a good feeling.
