Should You Buy Life Insurance?

Insurnace Smart Money ChicksA question that that we receive often here at SMC is “How do I know if I should by Life Insurance and if so how much?” The truth is no single right type of life insurance for everyone. Finding the right life insurance policy means determining what your needs are and locating a policy that meets those specific needs for the right price.

#1: Do you have kids that you want to provide protection for?

Yes: If your children are young, more life insurance is better to provide for them until they’re grown.

No: See #2

#2: Do you have a spouse?

Yes: Consider enough insurance to cover your final expenses and replace your income for a period of time.

No: See #3

#3: Are you a single adult with no dependents?

Yes: Cover your debts and possible final expenses, like sickness and funeral. Consider estate planning as well.

No: See #4

#4: Are you trying to insure a child?

Yes: Life insurance for a child should cover burial expenses, but may also be used for savings purposes but please do your due diligence on this one. It is not always the best decision.

No: See #5

#5: Are you retired?

Yes: Consider who you are leaving behind and buy enough coverage for all dependents.4f9a54c651ba38e173000175_160x120

The questions here are really just a start. We wish it was this black and white but it really is not.I found a really great page on Genworth’s site that provides very easy to understand explanations on the different types of Life Insurance. When you decide invest in Life Insurance, it’s best to work with a life insurance specialist to determine how to find the right insurance for your individual needs. As your needs change, you may need to change your life insurance as well.

Post presented by Genworth Financial,  All opinions expressed are all my own.

Andrea is the Chief Chick of Smart Money Chicks. After filing BK twice (once because she panicked, second time because the pro messed the first time up), she realized that it all could have been avoided if she understood more about how her Finances worked and the options available. At that point, she wanted to help as many as she could never make the same mistakes again. Our Promise is that all the content you read on here is created or edited by Andrea

Comments

  1. says

    The younger you are when insurance is purchased the the less expensive is it. Better to purchase before age 30.

    I plan to cash mine in after my children have completed school and add that monthly premium money to my retirement account.

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