Her Dad Wants Her To Pay For His Life Insurance And Calls It An Investment. Dave Ramsey Calls It What It Is—'A Hard Pass'

Core Perspective - A 24-year-old woman is being asked by her 65-year-old father to pay for his life insurance policy, which he views as an "investment" for her future benefit, despite not being seriously ill [1][2] Group 1: Life Insurance as an Investment - Personal finance expert Dave Ramsey argues that life insurance is not a good investment, stating that insurance companies profit from these policies, making them mathematically unfavorable as an investment [2] - Ramsey emphasizes that life insurance is most beneficial in situations where it protects young families from unexpected losses, contrasting it with the current scenario where the father is not in imminent danger [3] Group 2: Emotional and Financial Implications - The request for financial support in funding life insurance can create emotional burdens for adult children, leading to feelings of guilt or obligation [5] - Ramsey advises maintaining firm boundaries and avoiding turning financial support into a moral dilemma, suggesting that the daughter should focus on her own financial goals instead [5][4]