Updated: Oct 15, 2020
Today, let's talk about the "windfall" that life insurance creates.
Or rather, how it is NOT a "windfall" at all.
Insurance companies are not in the business of making people rich. They are in the business of transferring risks. And insurance companies have guidelines regarding how much a person can be insured for.
Just because you may want $5 million of coverage, does not mean that you'll qualify for it - medically OR financially.
This is a chart of the financial underwriting guidelines for one particular insurance company: