Because I’m happy paying about $80 a month for life insurance

Insider’s experts pick the best products and services to help you make smart decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our views are ours. Terms apply to offers listed on this page.

  • Many people with debt or children get life insurance to protect their families. My wife and I have neither.
  • But we’re happy to pay about $80 a month for our coverage.
  • My policies are worth a total of $800,000 and I am comfortable knowing my wife is covered.

When I tell my friends and family that I bought life insurance for my wife and I, I get weird looks. It’s not normal, at least in our situation.

In 2019 we paid off our last debt: our home. It was important. We also have no children. And debt and children are two big reasons many people get life insurance.

Now that we’re debt-free, do we really need to buy life insurance? I think so. And there are a few reasons for that.

Why life insurance makes sense at this point in our lives

I know we don’t have to have life insurance. Most of the time, people use life insurance to cover funeral expenses after the unexpected loss of a loved one, pay off mortgage payments, provide an inheritance for children, and cover ongoing living expenses that arise. from loss of income.

Our savings and emergency funds would more than cover any unexpected deaths in our family. That’s not why I bought life insurance for myself.

Rather, I chose my $750,000 30-year life insurance plan to take care of my wife in the event of my death. In addition to this personal plan, I bring in an additional $50,000 through my employer. That’s $800,000 in life insurance coverage.

I want her to be able to feel a sense of peace in the middle of a storm should I die before her. I want him to be able to continue living the kind of lifestyle we currently enjoy. I don’t want her to have to worry about how she’s going to pay her next gas or electricity bill, or whether or not she’s going to go back to work.

My wife has far less life insurance than me. She also earns less. Her plan is through my employer. We agreed to have her bring $25,000 of life insurance on hers. Her life insurance would cover any additional costs for a funeral, incidental expenses, and allow me to take some time off to mourn. We are looking into adding additional life insurance for her, hoping to increase her coverage to $300,000.

How much does life insurance cost us

My $750,000 policy costs $793.75 a year or $66.15 a month. For me, this is a small amount to make sure my wife is taken care of if she dies. You will be able to pay for the funeral expenses and set aside the remaining amount in an investment fund so that I 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. That works out to $7.48 a month. It’s 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. His rate is $3.12 per pay period, or $6.24 per month.

Insider’s Featured Life Insurance Companies

Chevron icon Indicates an expandable section or menu, or sometimes previous/next navigation options.

Chevron icon Indicates an expandable section or menu, or sometimes previous/next navigation options.

My life insurance gives me peace of mind

There is a peace of mind that comes with carrying life insurance. We know that death is coming for us. At some point, we all die. When that happens to me, I want to be financially prepared. I have now taken out life insurance for three years and have had peace of mind knowing that I will be able to take care of my wife long after I am gone.

Some may wonder why we have chosen term life insurance over permanent insurance. We decided to go forward because it would cover us until our savings, investments and income are more than enough to cover expenses and the residual income needed to give one of us a stable living situation. Term life is also a low cost life insurance policy. We can take what we are saving and put it into investments that will lead to higher returns.

Even though death is never easy, I will have made my death easier for my wife. She won’t have to worry about working extra hours at her job, finding someone else to take care of her, or having to change jobs to make up for my lost income.

Even if we are debt-free, there are still things that need to be considered when it comes to life insurance. I feel like my wife and I have those bases covered and she will be covered should anything happen to me.

This is the purpose of life insurance: to protect the loved ones we leave behind when we die.

Leave a Reply

%d bloggers like this: