You can do better. You deserve better.
Ahh, life insurance. Everyone’s favorite topic.
Truth be told, I have a love/hate relationship with life insurance.
When it’s done right, it is one of my favorite tools out there. It’s a relatively low-cost way to give your family a huge amount of financial security, something I value a lot.
The problem is that it’s often done wrong. Life insurance companies like to package their products with all kinds of complicated and convoluted add-ons, all of which serve mostly to line the pockets of the insurance company while leaving the consumer confused as to why they’re paying so much money for something that isn’t doing nearly all of the wonderful things the salesman said it would do.
So today I want to cut through the confusion and make things as simple as possible for you. By the end of this post, you’ll know whether you need life insurance, how to go about getting it, and what to look out for.
Let’s get started!
How do you know if you need life insurance? It’s pretty simple actually. There’s only one rule you have to follow:
You need life insurance if there’s anyone who depends on you financially and you don’t have enough money in your bank accounts to satisfy that need.
That’s it really. But to give you something more concrete, here are the three main types of people who need life insurance:
Working parent – You’ve got children and potentially a spouse who depend on your income for their basic needs. If you were to die, your family would need to replace that lost income for at least some period of time. Unless you’ve already got the savings to handle it (and the reality is that almost no one does when they’re starting out), life insurance is the easiest and least expensive way to do it.
Stay-at-home parent – This one is a little less obvious, but if you’re a stay-at-home parent then you’re providing your family with a HUGE financial benefit. Think about all the costs that would have to be added to your family’s budget if you were gone. Childcare alone could be as much as a couple thousand dollars per month. Once again, life insurance would be there to handle those costs.
Read more at Brokemillennial.com.