janewall
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- Apr 2, 2016
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I don’t understand why he would have such a high life insurance. Did he have a risky job or something?
It depends on who the beneficiary was, and the purpose Charles intended for it.
If Charles wanted to be confident that JJ would get the education he wanted for him, even if he wasn't around for it, then it's not an unreasonable amount IMO. Or if he wanted to ascertain that his widow could pay off their home and have enough money to live on without having to go back to work. People have even taken out life insurance policies to provide financially for their pets' future should they predecease the animals.
Given Charles' career in estate planning, and his reported income, a LI policy of $1 million or more does not seem excessive to me. He wanted to manage his own assets and provide for his family as far into the future as he could. If he was a reasonably healthy non-smoker, at age 60 his premium would not have been prohibitively high.
His mistake, if he made one regarding his LI, would have been trusting Lori to honor his wishes and manage the benefits prudently, in the way he intended. Let's hope she was not the beneficiary, and that she has not managed to get her grasping hands anywhere near that part of his provisions for the future of his loved ones.