Comments on: When Do You Need Life Insurance?

By: pamela

pamela — Fri, 28 May 2010 13:39:09 +0000

As always I feel there are exceptions to rules. My parents did one of those kid things when I was in school. I took it over when I got older for one main reason. One My parents were in debt up to their eyeballs..if something happened to me and they had to pay for a funeral I didn’t want to have added to that debt!! They literally had NO savings so that $10,000 would have been used to pay for my funeral with a little left over. And I think that is a good thing.

By: ctreit

ctreit — Fri, 21 May 2010 15:34:34 +0000

I am with you on most of these points especially on life insurance for kids. When I wrote a post about life insurance for kids in a previous blog I was running, I got a bunch of nasty comments. Like you, I argued that life insurance is supposed to replace income. That’s it. – I would like to add that you also want to take assets into account when you decide whether you need life insurance and how much coverage you need. If you have sufficient assets that allow your loved ones to survive even if they lose you income, you can skip life insurance entirely.

By: Ryan

Ryan — Fri, 21 May 2010 14:38:18 +0000

very true on all points. I know a few people who have passed the point of needing life insurance. When you get up in years it almost becomes prohibitively expensive. I hope to have enough money to no longer need life insurance when my current 30 year policy runs out.

By: Jenna

Jenna — Thu, 20 May 2010 18:40:41 +0000

Thanks for posting this information. Currently I’m in the “don’t need life insurance” group, but it is a good thing to recognize what life events might be in my future to make me switch groups.