Life insurance is not an investment.  Life insurance is a cost of living.  Just as a trip to the grocery store is a cost of keeping your family well fed and healthy, life insurance is a cost of keeping your family sheltered, clothed, and fed when you are gone. In fact, thinking of life insurance as an investment may be one of the reasons you are struggling with money.

There is one, and only one, type of life insurance to buy – term life insurance.

Whole life policies, universal life policies, and variable annuity policies are a benefit to the insurance company and your agent or broker – not you. That is why they are not the life insurance recommended by Dave Ramsey.  With those types of policies they make big bucks from your “investment,” while the 2-3% you gain is meaningless compared to a properly funded and invested 401k or Roth IRA. Do not allow yourself to fall for this scam.

Do I need life insurance?

You may, but may not. You will need life insurance only if you have someone in your life that is dependent on you and your income, such as children, a spouse who cannot work, or elderly parents for whom you provide. That is it. De nada.

You may also wish to buy a small policy which will cover the cost of your funeral, say $10,000, though a policy like this can usually be attached as a rider to your employer’s health insurance plan.

How much life insurance do I need?

You need enough life insurance to pay off any debt you may have left behind, and to provide for any children you may have until they are 18 years old. No more and no less.

To find out more about your life insurance needs, stop struggling with money, and to get in touch with trustworthy providers, contact us today for your free, get-acquainted call.