Now that I’m back from vacation, I’ve been pondering a blog post that’ll knock your socks off. The financial argument I’m about to put to you is profound, earth shattering, mind blowing even. It is radical. I might go so far to say that it’s soul shifting.
Let’s talk about life insurance.
Wait! Don’t leave. This is good stuff. Just hear me out.
I’m not going to bore you with complex life expectancy data from actuarial tables. Or get into the differences among term, whole, variable, and universal life insurance policies. I can’t. I’ve done next to no research on this topic. I trust you have the good sense to do it yourself should you consider what I’m suggesting.
There are occasions where I have no choice but to challenge standard financial advice. If you’ve read a few personal finance blogs, watched the Suze Orman Show, listened to a Dave Ramsey podcast, or browsed through Money Magazine, then you’ve likely been advised to pass on life insurance if no one depends on your income.
I don’t have a term life insurance policy for precisely that reason. Plus, I figure if I’m dead I’ve got my own problems to worry about. The living can figure out how to feed themselves. I’m joking…kinda.
But seriously, I believe the decision to buy life insurance deserves more thought. My closest friend was diagnosed with breast cancer when she was 27 years old. Shortly afterwards she suggested I obtain life insurance because a cancer diagnosis could severely limit, or eliminate, my chances of obtaining non-employer provided life insurance. I disregarded this suggestion as pure foolishness because I wasn’t married, I didn’t have any children, and there was no one else who’d hurt financially if I was to leave here.
Five years later, another close friend is diagnosed with soft tissue sarcoma at the ripe old age of 37. As far as I knew, both of my friends were healthy. Now, I’m thinking. What if I have children? What if I get married? What if I’m stricken with a major illness that’d render me uninsurable before I get married…before I have children? Term life insurance isn’t that expensive for a young, healthy individual. Could I spare a few dollars to secure the financial futures of my nonexistent husband and offspring?
But enough about me. If you’re planning on getting married or having children, do you think it’s worth it to jump the gun and purchase life insurance in anticipation of these major life events? If you decide to get the insurance, your risks are you’ll have wasted money on an unnecessary financial instrument when you die an old, ashy, childless, spinster. If you decide against it, your decision could cost your future family their financial security.
What are your thoughts?