Insider’s experts choose the best products and services to help you make informed decisions with your money (here’s how). In some cases, we receive a commission from our partners, however, our opinions are our own. Terms apply to offers listed on this page.
Welcome to Personal Finance Insider, a bi-weekly newsletter that connects you with the stories, strategies and tips you need to better manage your money.
Here’s what: I had life insurance when I needed it most
I had about 40 hours of work with my son when I had a very high fever. Apparently it wasn’t normal and I suddenly needed a lot of monitoring and medication. The fever was accompanied by other frightening symptoms, such as debilitating nausea and near total loss of my voice.
I was quite uncomfortable and could barely speak above a whisper, but I called my husband close to him to give him a message: there is life insurance; don’t forget if something happens to me.
I reminded him where I keep our police documents and how to access our savings and retirement funds. I was lucid when it came to our money; I had to make sure he knew the plan.
Luckily I survived it all (although I never found out what was causing the fever and other symptoms). But in those terrifying times, when I felt like I was nearing the end of my life, a small saving grace was knowing that I would put the right protections in place to take care of my family financially if the unthinkable happened. .
I took out a policy large enough to cover our mortgage
A year earlier, my husband and I had bought our first house, and right away I took out a life insurance policy that was worth a little more than our mortgage. If I died, I thought, my husband could use the money to pay for our house, then have something to live on while he cried and figured out what to do next.
I didn’t expect to think about it just 12 months later, but such is life.
My $250,000 20-year term life insurance policy from Bestow costs me $16.25 a month. If I weren’t an obsessive bank account checker, I would never notice the automatic payment leaving my account; it’s painless. But in this very dark moment during my work, it was a light.
These days, I’m preaching the gospel of life insurance to anyone who will listen. I’m 35, so it’s a real mixed bag among my friends – some have had coverage for years, while others have never thought of it.
For people in privileged positions like mine – earning good salaries, with healthy retirement savings accounts – I think term life is indeed a good option. It’s affordable for me and it will cover my family for the next two decades while our son grows and we pay off our house.
By the time I hit 50, when the policy expires, we’ll be in the last decade of our 30-year mortgage, and hopefully we’ll have more than enough savings and investments to cover the house. if anything happens to any of us.
For others, permanent life insurance is a better option. It’s more expensive, but many types of permanent insurance have a cash value component, which can be a retirement nest egg or a generational wealth-building tool.
Whatever your situation, life insurance is a good idea for most people. It’s the only thing in my budget that I’m happy to pay for and hope I never have to use.
— Stephanie Hallett, editor of Personal Finance Insider
Stories you may have missed
3 Reasons A Nonprofit Worker Decided To Skip The Civil Service Loan Forgiveness And Pay Off $115,000 In Student Loans Herself
Micah H., a 33-year-old social worker, decided to pay off her six-figure student loans after watching her colleagues get denied PSLF again and again.
What happened to FTX and how is it affecting crypto traders?
What you need to know if you have crypto in your wallet.
My wife and I have no debt and no children, but we are happy to pay about $80 a month for life insurance to protect each other.
A lot of people would look at Joseph Lalonde and his wife and say they’re wasting money on life insurance, but they don’t see it that way.
I’m a financial planner and I recommend 4 ways to start recession proofing your money right now
According to financial planner Pamela Capalad, now is the time to consolidate your variable-rate debt into a fixed-rate loan.
Do you like this newsletter and would like to recommend it to a friend? Here is a registration link.
Do you have any comments on this newsletter? We would like to hear it. Contact us at firstname.lastname@example.org.
#treasure #life #insurance #policy