Interrupter CheckmarkInterrupter IconFacebookGoogle PlusInstagramGroupRamsey SolutionsTwitterYouTubeExpand MenuStoreCloseSearchExpand MenuBackStoreSign in

Ask Dave

Going For Life

Doris wants to insure her and her husband against the worst, because it could very well happen.

QUESTION: Doris and her husband have life insurance through his work. She was diagnosed with cancer 2 years ago and he wants to retire in 5 years, which would make them lose their life insurance. What can she do in terms of insuring herself?

ANSWER: You buy life insurance to replace someone’s income. Not to sound cold, but if you pass away, he’ll be financially fine. What I would do is continue to build your nest egg so that you are self-insured at that point. You can also buy mortgage insurance to pay off the home; that wouldn’t hurt. But build the nest egg it as fast as you can, so he doesn’t depend on your life insurance by the time you don’t have any.