Life Insurance - What's the point?

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Time2help's picture
Time2help
Status: Diamond Member (Offline)
Joined: Jun 9 2011
Posts: 2768
Life Insurance - What's the point?

Anyone else out there starting to feel a bit silly about paying $$$ each year for term life insurance?  When the economic SHTF, what good will it do?  What useful purpose does it still serve? And doesn't this just fuel the finance/banking/corruption collective?

Wendy S. Delmater's picture
Wendy S. Delmater
Status: Diamond Member (Offline)
Joined: Dec 13 2009
Posts: 1982
Yes and no

Life insurace is necessary, for now, but I think you should carry the minimum, term-life (whole life is a horrible investment anyhow.) If something should happen to you before things go south, it would help your family.

It costs a great deal more to do a burial or even a legal notice in the paper about a death.  In NY, it ran about $8K to bury my mother, 8 years ago. My costs here would be cheaper since we have a family plot on family land, and putting a legal notice in the paper is cheaper in this state (it was $400 in NY.)

I hope things never get tot the point where life insuarance is hoping someone has a shovel to plant me, but who knows. And who knows how long it will take to get to that point. I sort of wondered if we'd be there by now....

Phaedrus the younger's picture
Phaedrus the younger
Status: Bronze Member (Offline)
Joined: Aug 21 2013
Posts: 64
a few thoughts to ponder

My thinking is along the same lines as Wendy.  If you have any meaningful need to protect your family if misfortune strikes, keeping enough life insurance for that need is usually wise.  The additional risk you take of cancelling your coverage is that you may lose your insurability and regret it later if you decide you need coverage again.   This is, of course, depending that the face value (benefit paid if you die) in $$s is still worth something!

 

to_be_frank's picture
to_be_frank
Status: Member (Offline)
Joined: Oct 27 2012
Posts: 11
Consider Sickness and Disability as Well

An equally important consideration is what happens if you are sick or disabled.  In that event your life insurance policy will not pay but you and your family will have even higher expenses to deal with.  For this reason you should ensure you have adequate coverage for disability or critical illness.  Insurance policies are available to cover these needs if you are medically eligible.  Some individuals have group coverage through their employer for disability, but a privately held policy is portable if you change jobs.

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