Quote:
Originally Posted by disneysteve
If a single adult dies, what happens to his debts? If John Doe owes money on a credit card in his name only, what happens when he dies? Can the credit card company go after John Doe's parents to pay that bill? I don't believe so but maybe I'm wrong. Same question for personal loans and hospital bills. As for a mortgage, that would be repaid by the proceeds of the sale of the property.
The only argument that makes sense to me is burial expenses, but all that requires is a minimal policy of about $10,000. And that's only if the family doesn't have any savings to cover an expense like that on their own.
I agree that there is no one-size-fits-all answer. It depends on the situation. I just think selling insurance as an investment product isn't such a great idea. I also think a lot of people are convinced into buying insurance out of fear rather than out of logic and solid financial planning.
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It's not only a bad idea (for an actual agent) to pitch insurance as an investment product, it's actually illegal. That tells me all I need to know about whether or not it's a sound "investment."