What it really is blood money! – not really. It protects people from the financial devastation they would face if they lose the income of a spouse, parent, or other family member. Much like my car insurance protects me from financial loss when a tree falls on my vehicle.
Can you imagine benefiting from someone's death? – I do not have to imagine that. My wife got a check at the beginning of the year for her share of her grandmother's estate. Is not that basically the same?
How do these life insurance recipients sleep at night? – Probably much better than the widows who are in poverty after the loss of a spouse and leave them financially penniless.
No wonder so many people are being murdered for the life insurance money! – This happens much less in real life than in the movies. In fact, the beneficiary of an insurance is usually a spouse, parent or child – someone you trust and take care of being financially secure when they no longer have their income to pay their bills. Usually not someone who would murder you for the money.
They miss the point completely. I am a perfect example of why there is life insurance: I am the breadwinner of a family of 8. We live comfortably from my 6-digit salary. If I was hit by a bus on the way home, my wife and children would switch from a household income of nearly $ 10,000 a month to a social security contribution of less than $ 3,000 a month. They would be forced to sell our house and live on the brink of poverty. That's why I have enough life insurance for me so they can pay our house and take over the expenses for a while.
With 30 years of salary exceeding $ 100,000 in my career, I'm worth much more than death. When I retire, our house is paid, our children are raised and stripped, and we become a larger nest egg for the Retired, so the financial impact on them, if I had died, a lot would not be so fierce. So I will have less life insurance (or none at all) once I reach this level.