Life insurance enjoys favorable tax treatment, unlike any other financial instrument. Death benefits are generally income-tax-free to the beneficiary. Death benefits may be estate-tax free if the policy is owned properly. Cash values grow tax-deferred during the insured's lifetime.
essentially put it away and forget about it. It is meant for the kids if you don't die prematurely or spontaneously.
Everyone has a unique situation, but with no kids, no consumer debt, and a healthy net worth, my wife and I don't have life insurance, opting to essentially self-insure.
I have to agree with Aaron on the fact that not all people need life insurance. Especially those who do not have anyone relying on their income and have enough savings to cover their final expenses. Additionally, l am not of fan of whole life insurance policies as I feel they are a waste of money. The premiums are extremely high in comparison to the final cash value. In most cases a person would be better off just putting the money used for premiums away in savings, low risk investments, or a term life policy.
@Elena B, I have a policy that will give me all the money I paid if I live. If I don't live, my beneficiaries will get the death benefit. It also has living benefits.
There's no need to justify your own personal decisions on any insurance. What makes sense for some may not make sense for others. What is important is that you periodically revisit your situation to make sure your insurance covers your current situation.
Really important to have!
Thanks for the balanced views here!
You may want term life insurance to pay off a large expense like a a home or if your spouse depends on your income or to take care of children before they can fend for themselves. This makes sense.
But IMO buying into an expensive whole life policy on the promise that you'll get some or all your money back does not make sense. Over the long term despite ups & downs you would have probably done better investing the money yourself in safe, mostly very low risk instruments with maybe 10% of your portfolio in high risk, high return opportunities. Note I said high risk, not highly unlikely to succeed.
Really important to have!
More important if you have loved ones who you don't want to leave in a bind. Not as important if you're all paid up.
I found out about Avibra from a saverlife post. It’s a free-to-use app that rewards your good habits with life insurance coverage. https://www.avibra.com/
Term while your kids are in the house for 7-10x your salary + mortgage is all you need.
I found out about Avibra from a saverlife post. It’s a free-to-use app that rewards your good habits with life insurance coverage. https://www.avibra.com/
I'm going to look into this. Thank you
I will have to check out avibra.
Also be careful who knows about your policy if it is more than 6 figures, lol!
I think it may be needed if a spouse is dependent on their partner's income or you have young children to support.
Any suggestions on great options?
Any
