Mr. Barney, who founded Compulife in Canada in 1982 and in the United States in 1987, is a contributing editor to Canadian MoneySaver magazine. Mr. Barney has authored 50 articles for Canadian MoneySaver over the past 12 years. During the fall of 2000 Canadian MoneySaver published a series of three articles which address in detail the subject of purchasing enough life insurance to make certain that a breadwinner's dependents have a replacement paycheck in the event of their death.
Most consumers have trouble translating their financial value into a single lump sum.
Mr. Barney offers some ideas and anecdotes to explain how a human being's financial value is directly linked to the income that they earn. This second article analyzes the three popular reasons people buy life insurance, and why Mr. Barney believes that those reasons are a distraction from the real need to own life insurance. For example, Mr. Barney does not believe you need mortgage insurance if you properly insure your income. You can reduce the amount of life insurance that you need to provide a replacement income by factoring in other sources of income, and other sources of lump sum money. This third and final article explains that it is important to analyze what money is appropriate for the income replacement job, and what money isn't.