We can't tell you how many times a listener or viewer has called us and said, "Hey Dolans! I know you hate insurance, but..."

Whoa! Seems we've developed a reputation. So let's set the record straight before we go any further: We don't hate insurance! We believe it makes perfect sense to buy insurance for the protection of your family in case something should happen to you, your family, or what you own. It also makes a lot of sense to use life insurance for certain estate planning techniques.

But here's what does makes us livid: stories from listeners like Allen in Pennsylvania, who had $400 per month to invest, and someone who stood to gain a fat commission suggested he "invest" in a life insurance policy. Life insurance was never meant to be an investment. It was invented to protect families in case a breadwinner dies or is unable to work. The industry began creating all of these fancy hybrid products just to sell more life insurance.

The life insurance industry is loaded with bogus sales pitches. There are insurance agents who will try to convince you to use your insurance premiums to fund your retirement on the grounds that the insurer will put your money into savvy investments and have a nest egg ready just when you'll need it.

Don't believe a word of it!

We've seen policies that give you investment or savings components so complex they do everything but dance. Most of them are not worth a bucket of warm spit as insurance coverage, and even less as an investment. They're designed strictly to make money for the insurance company. See Why We (Generally) Hate Cash-Value Insurance Policies.

But we're not beholden to the insurance companies or to anyone but you for that matter. That's why we can speak the truth, knowing we're helping you make better decisions about your money. So let's do a little straight talking about life insurance.

Who Needs Life Insurance?

Plain and simple, the purpose of life insurance is to replace your income if you die. So you need a life insurance policy that, if you die, will pay benefits to anyone who depends on you for financial support. For example:

• If you are supporting a family, you need life insurance.
• If you have children, you need insurance at least until they finish college.
• If you have special-needs children, you might need a life insurance policy that will protect them at every age.
• If you have a non-working spouse, you need life insurance to protect your spouse at least until your Social Security and retirement income kick in.

If you are single with no dependents, you probably don't need life insurance at all; certainly you don't need more than what your employer might automatically provide. Don't let anyone tell you otherwise.

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