I previously argued that insurance is useful for risk transfer, but less attractive as an investment.  I also think that under certain conditions – such as responsibility for minor children or limited savings, you need life insurance.  I thought a quick post using compound interest calculations could help illustrate why life insurance can be an

Please see my previous post, on Insurance as Risk Transfer Only Good uses of insurance Car insurance – mandatory and necessary, appropriately transfers risk of sudden damage to car or bodily health away from you to a company that can spread that risk around. Homeowners and renters insurance – similarly transfers risk of catastrophic damage

Insurance has one purpose, and one purpose only.  Remembering that purpose will keep you from expensive insurance ‘solutions.’  The purpose of insurance is risk transfer. For the rest of your life, insurance salespeople will try to sell you the idea that you can both increase your wealth and protect against risk at the same time.

I’m finishing up teaching an undergraduate course on Personal Finance this month, for which I find the assigned textbook totally useless, so I am on a quest to come up with a useful book to recommend for students as well as Bankers Anonymous readers. What’s useful The most impressive strength of Master Math: Business and