Cancer Survivor

Chris beat out cancer, but now he can't get term life insurance. Should he keep the whole life policy his parents have on him?

QUESTION: Chris was just cured of Hodgkin's lymphoma. He has $50,000 in life insurance through work and his parents have $50,000 in whole life insurance on him. Since he can’t get insurance, should he keep the whole life? Also, where does Dave place insurance in the Baby Steps?

ANSWER: Provided you are healthy or haven’t just survived cancer, you can buy $500,000 in term life insurance for almost nothing. It’s not a Baby Step, it’s just a monthly bill. You’re not going to be buying term life for quite a few years and you should just stick to these two policies.