Thursday, July 7, 2011

to insure or not to insure

I am talking about life insurance.  It's kinda of a morbid game insurance companies play with you.  They bet that you won't die, you bet that you will.  If you die,  your beneficiaries win.  If you don't the insurance companies win.  Very depressing, but kinda necessary. 

The basic term life coverage is pretty low cost, and only goes up drastically as you reach 60+.  With that, you get a very small amount that just pretty much covers the expense of you funeral.  This is worth the small payments so your loved ones don't have to dig into their emergency savings. 

However, if you have debt that your estate can not pay, your loved ones will be inheriting that elephant.  So getting a little more than basic would be good. Right?  How much?  Do get coverage equal to your salary of 1 year, 2 years, or a set amount, like equal to your mortgage?  These extras will start pushing the premiums up.  So at what point do you say I have enough coverage?  Or do you say I can afford this much $$ per month so I'll get as much I can for that?

1 comment:

  1. If you have people depending on your pay check, then yes, you need to get life insurance. We just had a baby and insurance is a must for us. If something happens to me, I want to make sure our baby will be taken care of.
    When I was single, I didn't really care much about life insurance.

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