Recommended Life Insurance Doesn't Make Sense

I understand that the recommended life insurance is to allow the survivor to maintain the same living standard if a spouse dies before the end-of-life date set in the program. In our family, my personal assets-IRA Regular and income is 20x my wife's assets/income yet ESP recommends life insurance for her until end of life but no life insurance for me. She does not have any future Special Receipts so ESP can not be protecting future income. On the Annual Suggestions page and on my Wife's Estate page it shows life insurance for her but not for me. Am I reading the report incorrectly? Please explain.
Thanks
James Mavrogenis

Comments

dan royer's picture

I'd have to see the database I guess, but I'd check "Contingent Planning" and begin by disabling that and see what the results are. IF that matters, perhaps copy everything existing into Contingent planning and try again--or leave it disabled if not using it.

I assume there's not Pensions with No survivor benefit?

Each is assumed to inherit the other's assets--so typically it's SS or Pensions without survivor benefit that I look for first.

Make sure in ESTATE you are not asking to have your living standard go up in the event of her death.

Hi Dan,
Update: Found the cause. I had a bequest in my estate so ESP was "protecting" her std of living from my premature death. Wait, that doesn't sound correct. If she's losing a portion of her inheritance from my estate then my life should be insured not hers. Am I reading the life insurance recommendations incorrectly?
Changing the bequest amount affected the amount of life insurance as expected.
When I moved the bequest from my estate to hers no life insurance was recommended for either of us. That makes sense to me.
Thanks
James Mavrogenis

Dan,
I still don't understand why insurance is recommended for my wife whose assets are many times less than mine. I've checked all the possible items you mentioned and none apply. So, it appears that this may be a bug - possible only in the reporting. How do we proceed to determine the cause?
Thanks
James

dan royer's picture

You could upload your database in a support ticket and I can take a look. But it appears above that you figured it out.

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