You Don't Need Life Insurance

Shawna is 30 and single with no dependents. Should she still have life insurance? Dave says she probably has very little need for life insurance.

QUESTION: Shawna on Facebook is 30 and single with no dependents. Should she still have life insurance? Dave says she probably has very little need for life insurance.

ANSWER: You probably have very little need for life insurance. If you have enough cash money saved to pay for your burial and you don’t have any debt and you don’t have dependents, then you wouldn’t need any life insurance. No one is going to be harmed financially by your death. No one’s depending on your income that would be lost at your death.

If you don’t have any money saved and you’ve got a bunch of debt, you might want to get a small term life insurance policy for a while. You can get $100,000 for nothing at 30 years old as a lady if you’re single and healthy and that kind of stuff. You may want to get a small policy for a little while.

If you’re out of debt and even if you own a home with a mortgage, the home would usually sell for enough to pay off the mortgage. You’re not getting insurance to leave an estate—to leave an inheritance. That’s a bad idea. The only reason you would get insurance is to make sure that there was enough to bury you—pay your funeral—you don’t want your parents or somebody to have to pay for that. You really don’t need life insurance at this stage of the game.

Most likely, since you’ve been through Financial Peace University, I’m going to assume you’re debt-free and you have an emergency fund of $15,000 or $20,000, and maybe you have a mortgage. Maybe the house is worth more than the mortgage. In that case, you would have zero need for life insurance, and I would not buy any as a single person. If you’re 30 years old and you’ve got two kids with a mortgage and your wife or your husband is counting on your income to eat, then you would be irresponsible to not get good term life insurance. It’s very, very inexpensive—the cost of a pizza and you can make sure your family is taken care of. How do you do that? Go to zanderinsurance.com, and you can get a quick, easy quote.

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