I don’t think I’m suffering from the delusion that everyone has vast amounts of left over money they can buy life insurance with. I know that my left over money is far from vast, and probably better characterized as sporadic, but my life insurance is already budgeted.
And believe, having survived a Dave Ramsey money makeover, I completely understand the need for and importance of a budget. I guess I wonder though, when I am working with someone who is trying to decide if they should get $250,000 worth of term insurance, or perhaps drop it down to $150,000 to make it more affordable, where the heck the rest of their $75,000 in income goes? Are their responsibilities prioritized, or are they paying $500 a month on a car payment, $250 a month on a jet ski, $150 a month on a dirt bike, and gritting their teeth at the thought of spending $75 a month to get the right amount of life insurance to cover the need?
I’m left shaking my head more often than I wish were true at people (men) who really believe that leaving their wife and 4 children behind with $250,000 is “gettin er done”. I’m left wondering, if they could afford it, would they even buy adequate insurance then? If someone turned Dave Ramsey loose on their budget and straightened things out to the point where it was easy to budget $1,000,000 worth of 20 year term insurance, would you pull the trigger?
Bottom line. It’s pretty simple to determine where a man’s family stands in his life. How much is spent every month on play and toys (his, not the kids), and how much is spent on life insurance? I like to play right up there with most folks, but making sure my family can carry on without a struggle is my highest priority.