Insider experts pick the best products and services to help make smart decisions about your money (here’s how). In some cases, we receive a commission from us our partner, however, our own opinion. Terms apply to the offers listed on this page.
- Many people with debt or children get life insurance to protect their families. My wife and I don’t have it.
- But we’re happy to pay about $80 a month for our coverage.
- My policy totals $800,000, and I have peace of mind knowing my wife is covered.
When I told my friends and family that I was Life insurance is purchased for my wife and myself, I got a strange look. It is not normal, at least in our situation.
In 2019, we pay off our final debt: our house. That’s a big one. We don’t have kids either. And debt and children are two big reasons many people get life insurance.
Now that we are debt free, do we really need to get life insurance? I believe so. And there are several reasons for this.
Does life insurance make sense at this time in our lives
I know we don’t have to carry life insurance. Most of the time, people use life insurance to cover funeral expenses after the unexpected loss of a loved one, pay mortgage payments, provide an inheritance for children, and cover ongoing living expenses that come with the loss of an income earner.
us savings and emergency funds will more than cover any unexpected death in our household. That’s not why I buy life insurance for myself.
Instead, I chose my $750,000 30 year term life insurance plan to take care of my wife in case of my death. In addition to this personal plan, I bring in another $50,000 through my employer. That’s $800,000 in life insurance coverage.
I want him to be able to feel the peace in the middle of the storm if I die before him. I want him to be able to continue living the lifestyle we now enjoy. I don’t want him to have to worry about how he’s going to pay his next gas or electric bill, or whether he’s going to have to go back to work.
My wife carries more life insurance than I do. She also makes less. His plan is through my employer. We decided to bring $25,000 in life insurance. His life insurance would cover the extra expenses for the funeral, incidentals, and let me take some time off to grieve. We are looking to add additional life insurance on her, hoping to bump her coverage up to $300,000.
What is the cost of our life insurance
My $750,000 policy costs $793.75 per year, or $66.15 per month. For me, this is a small amount to make sure my wife is well taken care of when I die. She will be able to pay all the funeral expenses and put the remaining amount away in an investment fund so that she will have a reliable income stream when I am gone.
My plan through my employer is much cheaper. I have $3.74 deducted each pay period to cover my life insurance. This equates to $7.48 a month. This is so little that we don’t even notice the difference in my income.
My wife’s plan through my employer is actually cheaper than mine. The rate is $3.12 per pay period, or $6.24 per month.
Insider’s Featured Life Insurance Company
My life insurance brings me peace of mind
There is peace of mind that comes from carrying life insurance. We know death will come for us. At some point, we all die. When that happens to me, I want to be financially prepared. I have now carried life insurance for three years, and they have peace in the knowledge that I will be able to take care of my wife long after I am gone.
Some may wonder why we choose term life insurance more permanent insurance. We decided to use the term because it will cover us until our savings, investments, and income are more than enough to cover the expenses and the remaining income needed to provide either of a stable living situation. Term life is also a low cost life insurance policy. We can take what we save and put it into investments that will yield higher returns.
Although death is not easy, I will make death easy for my wife. He doesn’t have to worry about working extra hours at his job, finding someone to take care of him, or having to switch jobs to make up for my lost income.
Even if we are debt free, there are still things to consider when it comes to life insurance. I feel my wife and I have those bases covered and she will be covered if something happens to me.
That’s what life insurance is all about: Protecting the loved ones we leave behind when we die.