Valid point, especially now that the estate tax beast so rarely bites and may soon be destroyed. The article points out a few reasons for having life insurance, but omits some important ones such as estate creation for young families.
Thus, the biggest lie in life insurance is: You need life insurance to pay your estate tax. Even when the proposed insured expects to die with an estate large enough to require payment of estate tax, this often just isn’t true. Whether life insurance is necessary or even desirable depends on the composition of assets in the estate, the objectives of the client and the client’s legal obligations that are expected to survive him. In life insurance planning, as in all aspects of estate planning, it’s incumbent on advisors to provide their clients with objective and forthright analysis, along with full information about available alternatives and their consequences, so the clients can make informed decisions.