Things to Do Before I Die - Buy Life Insurance

Buying life insurance tends to be on of those things that people put on a list of “Things To Do Before I Die”. Unfortunately, there are still a lot of people who never cross that item off their list. But, is simply buying just any policy, for the sake of buying a policy, much better than never buying a policy at all?? Maybe, maybe not, depending on your circumstances. What is the average price of life insurance? For example, a single, twenty-something year old male, that earns a little better than minimum wage, with little or no debt purchases a $50,000 term policy. Does that seem like a sufficient amount? Probably, but it also depends on his goals and few other factors.

The point is, when you determine to buy life insurance you need think about several key questions: How much is enough? What is my goal in buying life insurance? Who is to be the beneficiary (’s)? How much can I afford? Should I buy Term, Whole Life, Variable or Universal Life, or a combination? All important questions that you and your insurance advisor should be asking before you just buy a policy.

How much is enough? If you listen to a financial advisor such as Dave Ramsey he will tell you to six to ten times your salary. He will also tell you to buy term only and invest the difference. This is good advice if you have the discipline to follow through with second part of that requirement. If you don’t have the discipline, then you might want to consider whole life or maybe variable life if you are not risk adverse.

What are your goals in purchasing life insurance? Do you have a mortgage? Do you want there to be enough money to send your children to college? Do you have other debt, such as credit cards or vehicle loans, that you want to be sure your spouse can pay off?

When the automobile was first rolled off the assembly line the joke was “You can get it in any model, as long as it is a Model-T and you can get it in any color, as long as it is black”. Buying life insurance should not be that way, it should be customized to you as an individual to fit your goals, your budget, your circumstances. With so many life insurance providers available, all you have to decide is how much, how long, and what kind, then start shopping.