Originally Posted by
cbn42
If you have $500,000 in life insurance and I offered you $600,000 for your life, would you accept it? If life insurance determines the value of life and you were a rational actor, you would gladly give up your life for any amount of money that is greater than your policy.
I agree that how much life insurance you carry isn't a good metric. If I had $100MM in the bank, I wouldn't carry any life insurance (except perhaps for tax/estate planning purposes), since I can self-insure (wife and kids would be financially fine if I get hit by a bus).
There's actually robust analysis done on the topic of "what is a life worth." Good summary of recent data points
here. Bottom line, seems to be between $5-9MM, for Americans. FAA uses about $6MM.