Bill Boersma: On Life Insurance

My wife has no earned income. Why would I buy life insurance on her life? At first glance this may seem a reasonable question but upon closer inspection, the question is really quite absurd. I guess, as with many things, it depends on what is important to you.

My wife is a lot smarter than me (pause for jokes) and much more educated, but her choice is to be a stay-at-home Mom. She has zero earned income and we are always taught that you insure against the loss of economic value, right? For a wage earner, this is easy to understand. But for a non-earner? Read more…

Recently we had an accountant call us to ask our opinion on something that happened to a client of hers. I thought this would be a good time to review the potential consequences of a life insurance policy which is classified as a Modified Endowment Contract (MEC). Even seasoned agents and advisors sometimes get confused by this issue. Read more…