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[Music] Brought to you by the EveryDollar app, start budgeting for free today. So I have a pretty straightforward question. I talked to my dad yesterday, and he wants me to pay for his life insurance policy. He said, I should think of it like an investment, and he doesn't want to actually pay for it himself. So I just wanted some advice on maybe how I can talk to him about paying for his own life insurance, or should I pay for it myself? That's so weird, isn't it? Yeah. When you heard that, you had to go, say what? I don't know if you said it out loud, but you said it in your head, didn't you, Frankie? I did, and he said it to my mom, and he said, because he's not going to be receiving any of the benefits, I was like, well, I mean, that's kind of the point. He was saying, something's not going to be receiving it, I should pay for it, since I can think of it like an investment. How old are you? I'm 24. And how old is he? 65. Is he ill? Not necessarily, I mean, he has some health issues, but I mean, for his day, he's-- but his death is not imminent, as far as we know. Right, yeah. Yeah, so you could be doing this for like 30 years. Yeah. Yeah. I think that's a hard pass. That's a big, that's a big NO, nope, nope. Let's just call that, let's check the box beside, nope. Now, the question was, your question was though, how do I talk to him about it? Just go, dad, you know, I'm 24, I'm going to be doing other kinds of investing rather than in your death. And I don't think we're going to go this way, but thanks for the offer. Yeah. Okay, yeah, I think that-- Pretty simple, you don't need to be snarky about it, although it's really tempting. But-- Right. But it doesn't serve any purpose, just be snarky about it other than it makes you feel, just because it's just strange. And he knows it's strange, and I don't know, your dad does stuff like this often, doesn't he? Yeah, yeah, yeah, yeah, yeah. Quirky, quirky, quirky dude. Okay, yeah, I would just smile and say, dad, you know, thanks for the offer. I've kind of thought about this, and I talked with my financial guys, and they said, I should just be doing regular investing rather than investing in your death, and I'm just not comfortable doing that, and so, but thanks for the offer, no. And I really wouldn't go into a bunch of-- I wouldn't go into a long lengthy discussion about it, it's just two sentences and no. Well, what I'm gonna do is I'm gonna play this back for him later. Okay, that's fun. You could tell him I said, obviously, he's quirky, but that's a really quirky thing to say. To your 24-year-old daughter, dude, if you're gonna play it for him, I mean, I wouldn't do that to my 24-year-old daughter. You've got other things you should be doing with your life rather than investing in your dad's death. I mean, and besides that, mathematically, it's a bad investment. Because insurance companies make money on insurance. The probability of his death is, and the payout is less than the premiums that they think they're going to receive. If they don't receive premiums equal to the payout before he dies, they lose money on the insurance. And if they do that often enough, they go out of business. So insurance companies make money on insurance, which by translation means it's not a good investment. It is a good purchase for those of you out there. We had a debt-free scream yesterday, I believe, our day before yesterday that the young lady's husband was killed in the car wreck. He was 30-something years old, two months before they were debt-free, two months before that, he had gotten life insurance and he had a brand new baby. Now, that's a good time to buy life insurance. That's perfect. I mean, that family's taken care of because that young man was just a stellar dad and husband. But this is a completely different thing. It's not a good investment. Mathematically, it is a protection for your family in the case of a horrible event happening. But if your dad doesn't, he's 65, he may not need life insurance. If he's got enough money, he could not just not buy life insurance. I'm 63, I don't have any life insurance. I have a huge pile of money and no debt. If I die, Sharon's going to have a party. She doesn't need life insurance, okay? And it'll be a big party. I guess if I die, when I die, if I died before her is what I should say, right? - Well, we will celebrate. - We know that that's her plan and I'm a little worried about it. - Yeah, I mean, the data probably backs that up. I would just say this, this is like common core math. It just doesn't make sense and we already have good math. We don't need to invent something. This is just a wacky idea. The minute I heard it, it's just wacky. And you can't, by the way, reason with wacky? I've just got to move on quickly. I wouldn't, I just know that, no. Create your free every dollar budget today, the simplest way to budget for your life.
