rlvanhazel
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You dont need it. Life insurance isnt really for the person buying it. Its for the benficiaries that you write on the line for the policy to pay to.
Why get it? Because someday you might have kids and a family. Tomorrow you might be diagnosed with diabetes and are no longer insureable. There are many reasons to have it without kids etc. If you care about anyone right now to leave them something if you were to die or if you think you ever will care enough about someone to leave them a little something then get it. But if you're all alone in the world and nobody cares about you or you them, theres no reason to throw money away to an insurance company ;) |
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Brite Tiger
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Many financial experts consider life insurance to be the cornerstone of sound financial planning. It can be an important tool in the following situations:
Replace income for dependents
If people depend on your income, life insurance can replace that income for them if you die. The most commonly recognized case of this is parents with young children. However, it can also apply to couples in which the survivor would be financially stricken by the income lost through the death of a partner, and to dependent adults, such as parents, siblings or adult children who continue to rely on you financially. Insurance to replace your income can be especially useful if the government- or employer-sponsored benefits of your surviving spouse or domestic partner will be reduced after your death.
Pay final expenses
Life insurance can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance.
Create an inheritance for your heirs
Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries.
Pay federal “death” taxes and state “death” taxes
Life insurance benefits can pay estate taxes so that your heirs will not have to liquidate other assets or take a smaller inheritance. Changes in the federal “death” tax rules between now and January 1, 2011 will likely lessen the impact of this tax on some people, but some states are offsetting those federal decreases with increases in their state-level “death” taxes.
Make significant charitable contributions
By making a charity the beneficiary of your life insurance, you can make a much larger contribution than if you donated the cash equivalent of the policy’s premiums.
Create a source of savings
Some types of life insurance create a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn on the owner’s request. Since most people make paying their life insurance policy premiums a high priority, buying a cash-value type policy can create a kind of “forced” savings plan. Furthermore, the interest credited is tax deferred (and tax exempt if the money is paid as a death claim). |
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Doing the Right Thing
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5 possible reasons:
1) Is anyone currently dependant on your income right now? For example, are you putting food on the table?
2) Your health may not be as good as it is now in the future, so if your health deteriorates from aging, you may not qualify to get life insurance, or at least for a preferred rate.
3) You can lock in the rate now instead of waiting to get it later.
4) Do you own a home? Maybe a relative or someone in your family want to own your home in case something happens to you. The life insurance can help pay off the mortgage in case you die.
5) Is your family able to cover your funeral in case something happens to you?
If you say no to all these questions, then you don't need it right now. So you should use whatever money you have and start investing into your future. If you already have, then put a little more in. You need to make your retirement funds will last you throughout your retirement years. |
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Ernie
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Well some times it helps you get loans (if it's full life). You may not want to be buried in a paupers grave. You may want to leave a legacy for someone other than your kids.
But you'll be dead so don't spend too much time worrying about it. |
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red_fire_halo
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who's going to pay for your funeral when you die? do you really want your family and friends to have to shell out all of that money just because you were too selfish to get life insurance? |
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jcss_003
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by theory you need life insurance
a.) when you have kids so if you die they have something a/o the person who takes them in does and
b.) when you have outstanding debt. By theory you only need enough life inssurance to cover y our debt (Morgage, Loans, credit cards) and if you are married you need to concider if your wife/husband can survive w/o your income so many times you would want to factor in a years worth of your income in your insurrance policy (so they can pay the bills) and also you want to make sure your loved one would have enough money to live on (not necessaraly for life but to grieve and get back on their feet)
If none of these apply to you than you don't need it! |
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Sunidaze
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Well...I have life insurance and I have no kids. Not married yet either. However, you never know when or why you're going to need it, but it's nice to have it just in case. With me, I don't want my family being stuck with my bills in the event of my untimely demise. I have a horrible driving record (I've totalled three cars to date) and have alredy gone a round with melanoma. I also go to school, and the student loans are starting to build, still paying of credit cards from a bad relationship and other miscellaneous expenses. Not to mention all associated funeral costs in the event of my death. |
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Financial JUSTICE
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Life insurance with cash value don't pay out cash value when you die! Sure you get face amount that is reduced by any loans and missed premiums, but you lose all the cash value! They say its a good way to build savings! How is that so if you lose it all and it doesn't go to anyone when you die? People say you can borrow it. Why do I want to borrow my own money that I paid for? Cash value = scams! |
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Alejandra E
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Agree with last answer
Powerful reasons are
TAX FREE living benefits with the right policy
High interest return with the right policy
With the right policy, you can cash out the policy for retirement or emergencies, and because its tax free, its the best savings vehicle, on top of the fact that your money is INCREASING much faster than in a savings account. |
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mbrcatz
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Maybe you don't! There's not enough info here to tell!
You have to have a GOAL in mind, before you buy insurance. What do you want it to DO for you? If you don't want it to DO anything for you, don't buy it!! |
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