http://www.edelmanfinancial.com/radio/march-19-2016#ep-nav

Why the Amount of Life Insurance You Have Could Be Misleading

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In this episode, Ric gives husbands a slap in the face. And wives a kick in the <synonym for donkey>!

When, at what age, does a wife become a widow?

On average?

Cue the final jeopardy themes … …

… … (don’t rush; we’ll wait; this is important.) … …

Ok? Pens down.

60!

To quote Ric: “aaaaaaaaaacccccccccccckkkkkkkkk!”

Half at least that 60 and half after 60.

How much life insurance does a family need?

And, another great Ric-ism, “In this decision, husbands don’t get to vote because they will be dead!”

Rick gives the rule of thumb: Take the about of life insurance, half it, and drop a zero. (For the not mathematically challenged, that’s a 5% withdrawal rate.)

500,000$ = 25k$ / year

1,000,000$ = 50k$ / year

2,000,000$ = 100k$ / year

Not very much. 

Rick good news is that life insurance is cheap.

My life’s lesson is that husbands need to insure their wives. Every try to hire a nanny; housekeeper; even a baby sitter? Wives are economically very expensive to replace!

My maternal grandmother used to say: “A man who, dies without life insurance, doesn’t leave his family; he abandons them”.

A word to the wise.

Great advice from Ric.

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  Why the Amount of Life Insurance You Have Could Be Misleading