Exercise 3: Why Sam Prioritizes Income Protection Over Life Insurance — Possible Solution
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The "everyone needs life insurance" framing misses the real purpose
life insurance actually serves - Chapter 7 established that insurance
exists to transfer the financial risk of a specific real loss onto an
insurer. Life insurance specifically protects dependents who would
otherwise lose a real source of financial support - and Sam has no
dependents, so that specific real risk doesn't currently apply to
Sam's own situation the way it would for someone supporting a partner
or children.

What the capstone's own Step 7 prioritizes instead is income
protection insurance, because Sam's own income is genuinely Sam's most
valuable financial asset right now - it's what funds the entire plan
built in every other step of this capstone, from the emergency fund to
the credit card payoff. If illness or injury prevented Sam from
working, that would be a real, direct threat to Sam's own financial
plan in a way that Sam's own death currently isn't (since there's no
dependent who would lose support). Prioritizing insurance based on
Sam's own real, current situation, rather than a blanket "everyone
needs this" rule, is exactly the kind of reasoning Chapter 7 modeled.

ANSWER: This suggestion misses that life insurance specifically
protects dependents, and Sam currently has none - so that particular
real risk doesn't apply to Sam's situation right now. Step 7
prioritizes income protection instead, because Sam's own income is
their most valuable real asset, funding every other part of this
plan, making its loss (through illness or injury) a much more direct
real threat to Sam's finances than life insurance would currently
protect against.

WHY THIS WORKS AS AN ANSWER
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This correctly applies Chapter 7's own risk-based reasoning to Sam's
specific real circumstances (no dependents, income-dependent plan)
rather than accepting the "everyone needs it" framing as a blanket
rule that ignores individual situation.