Life Insurance?

[kawinsi]

Is it must?

[disneysteve]

Is it must?

The purpose of life insurance is to provide for those who are financially dependent on your income in the event that you die prematurely. Is it a must? That depends. Is anyone dependent on you? Would anyone suffer financially if you were to die? If the answer is yes, than you should get low cost, term insurance for an appropriate amount. The rule of thumb is 8-10 times income but the actual amount you need will vary based on your situation.

[Weird Tolkienish Figure]

Is it must?

Good to have if you have dependents, IMO. As you get older, the less worth it it becomes.

[Retired To Win]

Even though my wife and I would each be fine financially if the other died, we still carried life insurance for the specific purpose of covering/paying off our mortgage. (This was a single policy that covered both of us and paid the survivor.) But, once we eliminated the mortgage, we had no further use for the policy. (We have no dependents, though.)

[iliketosavemoney]

I got it because if I die, I don't want my wife to worry, especially with the newborn on the way.

BTW, if you smoke, quit! I quit 2 years ago but my premiums are a little more than double my wife's. It would be so much more if I was still a smoker or less if I had never smoked .

[realbankingadvice]

Although Life insurance is a great option to make sure your family stays financially stable in the event of your passing, there are other vehicles that can allow you to have the same security and even make you some money in the long run.

I would suggest you look into some fixed annuities, that can offer you a small but decent return and offer great death benefits in the even of your passing.

Best of luck,

Louis

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[bigdaddybus]

I love annuities, they make my employer a lot of money. I but term life myself.

[samstein1220]

Is it must?

There's another purpose for life insurance nowadays and that is to pay for long-term care. According to LTCOptions and AARP, the said product works this way, you invest in life insurance and you choose long term care benefits as your rider. Once you've triggered your long ter care benefits, the amount used will be deducted from your death benefit. When you die, the remaining amount in your pool of money will be given to your beneficiary.

Life insurance with long term care benefit or also known as combination products are perfect for people who need both death benefit and long term care coverage. This is a great alternative to people who are disconcerted in buying traditional long-term care insurance.

[myrdale]

It all depends on your general situation.

How old are you?

Are you married?

Do you have any children?

How old are they?

Do you enjoy sky diving?

Do you own a home with a mortgage, and if so how much do you owe?

Are you rich?

If you are 25 with a new wife, baby, and mortgage, and you died tonight, it would be a comfort for your widow pay off the mortgage and put that money up for college or living expenses.

If you are 85, your spouse has been dead, your kids (in their 60's by now i'd hope) are grown and gone, insurance probably doesn't make much sense.

Personally at 33, I have a $100k 30 year term policy. I am single and no kids, but the reason I carry it is to finish paying off my house, bury me, and then leave some amount to help my mother out as I would no longer be in the picture.

Ultimately you need to ask what is important to you and how much is needed to care for it in your absence.