Do I Need Life Insurance?

Aaron AvatarBack in my early 20s, I was first introduced to life insurance by a co-worker. He was also just “starting out” in life and highly recommended purchasing a term life policy.

“I'm 20 years old, I don't have a wife, kids, a house and my car is about to fall apart. Why do I need life insurance?” I asked my friend.

Now my friend had no incentive to sell me on life insurance. Yet he pointed out the benefits.

Among them was the possibility that I – who was without health benefits at the time – could be involved in an accident which could leave my family with huge medical bills. If I were to pass on – then having a policy in place could have cleared up any debt accrued because of my uninsured status.

Another point he tried to get across was that I had school debt. If I were to die suddenly, the school loans could be taken care of with the proceeds.

Lastly (and this is what sold it on me at the time) – was leaving the world unexpectedly and not leaving anything behind for my mother. The fact she was a widow and didn't have a big nest egg bothered me. I wanted to leave her with at least some “benefit” that might take care of her financially for awhile – if not til she passed on.

Getting insured

I soon thereafter signed on with an insurer for a 30-year term life policy. It was a nominal amount per month and at any time during the 30 years if I were to die suddenly or contract a terminal disease, it would be paid out to my mother.

The process to get insured was not a difficult one. The provider sent someone over to my house to make sure that I didn't have any type of pre-existing condition, took some of my vital signs, asked me some questions and was soon out the door.

My recommendations

If you are an adherent to Dave Ramsey at all, you know that he also recommends term life policies. I do too.

In almost all cases, I recommend everyone to be insured. Obviously, if you are single, no family and without debt – it probably wouldn't be of worth.

My work place even includes a benefit to insure your child. The policy isn't real high – but it is something to consider.

The cost is almost as much as you'd pay for yourself and a spouse to eat out once per month. So, it's really not cost-prohibitive. There is also peace-of-mind that is worth a lot.

For more information about being insured, contact your insurance provider.

Disclaimer: As you know, I'm not a insurance professional nor do I play one on tv. Balance all my advice with your own research and a trusted professional. This post was made possible by Guardian Life Insurance.

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