Life insurance is a popular topic, but how many people actually have it? Is it worth it in every case?
If you have financial responsibilities like a mortgage or kids, life insurance can make sure they’re covered after you’re gone. Term life insurance is often affordable and meets the needs of most people.
@Shane
I agree with this completely. My father passed away from cancer a few months ago. We had a small $30,000 policy on him, which only covered the funeral. Now, my stepmom is left with the mortgage, car payments, and massive medical debt from his treatments. It’s a heartbreaking situation, and she might even have to sell their home. After this, I got a $300,000 policy for just $10 a month to make sure my family won’t face the same hardships. Protecting your loved ones from financial stress after you’re gone is one of the most responsible things you can do.
@Shane
Paying $10 a month sounds like you might have an accidental death policy. These only pay out if your death is ruled an accident. It might be worth looking into a policy that doesn’t expire and provides broader coverage, especially if you’re young.
@Quincy
I wouldn’t recommend policies that don’t expire, like whole or universal life insurance. A simple term life policy is usually cheaper, and you can invest the extra money in a low-cost index fund instead.
@Shane
$10? That seems really low. I pay $80 a month for a $300,000 policy, and I have no medical issues. How old are you?
@Shane
I’ve been in the insurance industry for 35 years, and I can confirm the advice here is solid.
@Shane
Term life insurance is good for covering specific needs like a mortgage. For a more flexible option, look into indexed universal life insurance, which can also help with retirement planning if funded properly.
@Quincy
Are you an insurance agent? This sounds like a sales pitch.
@Quincy
This is not great advice. Indexed universal life insurance is usually an expensive option that benefits the agents selling it more than the buyers.
@Quincy
Be careful with universal life insurance. Many agents promote it because they earn commissions, but you can often get better results with a low-cost index fund through a brokerage account.
@Shane
Couldn’t agree more.
Micah said:
@Shane
Couldn’t agree more.
I have a $400,000 policy for $23 a month on a 30-year term. I’m 30 years old, and I’m also a financial advisor. I wrote my own policy, but it didn’t give me a discount on the premium.
@Keegan
How does someone write their own policy?
Blair said:
@Keegan
How does someone write their own policy?
Since I have an insurance license, I was able to handle my own application process. The underwriting was still done by the insurance company.
@Keegan
We went through a broker, and for my partner, a $500,000 permanent policy costs about $125 a month. She’s 28 with no health issues.
Micah said:
@Keegan
We went through a broker, and for my partner, a $500,000 permanent policy costs about $125 a month. She’s 28 with no health issues.
That sounds like a whole life policy, right?
@Keegan
Yes, it’s a whole life policy. We’re still considering it because it feels worth it for the long-term coverage. The cost difference between term and whole life for 40 years seemed small enough to go with whole life.
@Micah
Whole life policies can be useful for estate planning or as a financial legacy. It’s great that you’re looking into all the options. Curious—why did you choose a 40-year policy over a 30-year one?
@Keegan
We wanted coverage that lasts beyond retirement. A 30-year term would leave us uninsured at 58, and we’d rather have the peace of mind of a whole-life policy to cover everything.