The Life Insurance Movement

When I first heard about the life insurance movement, my initial reaction was to brush it off because what young, healthy woman needs life insurance?

My beef with life insurance started a few years ago, when I was looking up how much it would cost to insure both my boyfriend and I just in case. We had just moved in together and if anything happened to one of us, it would leave the other strapped for cash.

I must have looked at the wrong company for the insurance because the cost was coming out to be around $300 per month.

This is, if you are unfamiliar with life insurance, an insane amount of money for non-smoking young adults who are completely healthy with no pre-existing conditions.

Obviously I didn't buy life insurance back then and now, a couple of years later, I still don't have it and neither does J. Here's why:

We Don't Have Children

I think life insurance is extremely important if you have children. If you have children and you pass away, who is going to provide for them? You may have a spouse that has a paying job, however, who is to say that he or she can support kids and everything you built together on only the one income?

Let's not even go there if you both pass away.

But I don't have kids yet, and I see life insurance as an unnecessary expense. To me, it's like having pet insurance for a goldfish.

I have enough savings to pay for a modest "celebration of life" should my family choose to throw one. My liabilities are very limited. Should I still have debt on my car if I died before I had kids, it could easily (and quickly) be sold to pay off the car and still have a chunk of change in the pocket.

We will definitely get life insurance when we buy a home, because it would be unfair to saddle my significant other with a whole bunch of mortgage debt on only one income.

We're Young (And Wild and Free)

I'm still in my early-ish 20's. There's a reason that life insurance is so much cheaper for younger folk, and that's because we're unlikely to die. I'm not saying that no young people ever die, but generally, we're in good health.

I'm not obese, I don't smoke, I don't engage in binge drinking, I don't do drugs of any nature, I go to the gym regularly and I have an office job (one of the safest you can get).

I don't even engage in high-risk activities like sky diving or even hiking, more because I'm lazy and less because I'm not adventurous.

There are two ways that are realistic as far as me dying:

a) Car accident

b) Death by internet stalker (I'm looking at you).

So while it could happen, lets be real, it probably won't. And heck, maybe by then one of my websites will be worth something and the boyfriend could sell it 😉 Phhff.. right.

I'm Covered (Minimally) By My Workplace

Many workplaces offer a settlement to the survivors in the case that a family member passes away. Mine does, to a small degree.

When I have kids, you better believe that I'll buy life insurance, but for now? I'm opting out.

 

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50 thoughts on “The Life Insurance Movement

    1. I enjoyed the part in Holly's recent article where she expanded on some of the reasons we need health insurance even young and childless. It is a very personal decision, though.

      Reply
  1. We're kindof in the same boat as you. Our jobs provide enough life insurance that if one of us were to die, the other would have more than enough to pay off all of our debts. Without any debt, one income would be more than enough for the remaining spouse to live on.
    That being said, I think I'm a little less confident in my invincibility than you seem to be (or maybe that's just the downfall of how things sometimes sound on the internet). Accidents happen. People get hit by buses. Seriously, I know someone who was hit by a bus and died. Another old acquaintance died in her sleep as a healthy 30-year-old. So while I hope Mr. PoP and I don't kick it before we reach a ripe old age, I'm glad that our jobs will keep the other from being financially adrift should the worst happen.

    Reply
    1. Post author

      I was partially joking with the invincibility part. I'm a sarcastic type 😉 Things can happen but my work covers more than enough to have a nice little cushion should I pass away.

      Reply
  2. I'm similar to you. My work offers me a little bit of life insurance, and other than that, I don't think I need anymore right now. I don't have kids so I'm not too worried.

    Reply
  3. One thing to consider is that you qualify for life insurance now, but if something happens with your health, you may not qualify in the future. It's worth considering whether that's worth the risk for you. (That doesn't mean you should run out and get life insurance, it's just another point to consider.)

    Reply
  4. It makes sense you'd be indifferent based on your situation. Based on the fact that insurance is a very competitive product, I'm guessing that the policy the woman is talking about is a permanent life insurance policy and most of that money goes into savings. The rest is premium, but the premium part isn't big. That type of insurance is often sold by salesmen (her husband) and isn't the type the average person starting out needs. ...but the true "cost" probably isn't $300 (unless he has some horrible disease and is going to die soon)

    Reply
  5. $300 IS expensive---yikes! We didn't take out life insurance until we bought a house and started trying to have kids (about 8 months ago). My husband is the breadwinner and he did get some life insurance from work, but not enough so we bought an extra policy. My policy is a much lower amount. We were 32 & 28 when we got it...we didn't really need it before that.

    Reply
  6. I wrote my similar take on my current life insurance situation on my blog today. I agree that having kids or a big mortgage should make you strongly consider life insurance. If you don't have it now you should know what life eevent will make it necessary for you.

    Reply
  7. Emily @ evolvingPF

    I feel indifferent, too. No kids means no need for life insurance! I don't even have anything through my work but it doesn't bother me.

    Reply
  8. lol, your title made me laugh! It sounds like you've thought it out and came to a good conclusion, honestly. For me, I have a wife and two daughters, so life insurance is important. But for your situation, it seems silly! I think you're making the right deicsion for now.

    Reply
  9. I need a big chunk of cash (around $200k) from life insurance for them to cryo-freeze me when I kick the proverbial bucket. That way, in the future, once they've created the technology to cure me or, at the very least, upload my consciousness into a computer- I can be thawed out and live on!

    Reply
  10. As someone else mentioned above, a lot of people avoid buying life insurance when they're young, healthy and without kids because they don't feel like they need it or ever will. The thing is, it's usually the cheapest time to buy it. Not only that, but quite often people wish they had bought it later on because they get diagnosed with some illness later on that precludes them from getting affordable insurance. So buying when your young and healthy will ensure that you pay low rates, that you won't be excluded from having coverage later on. Even seemingly healthy people can get diagnosed with serious illnesses or even die young. Case in point, my wife was a healthy 26 year old when she almost died of a massive blood clot due to a genetic blood disorder. We didn't have insurance on her because we didn't have kids at the time, and now it's prohibitively expensive because of her health issues. If we had bought just a while before her illness it would have been extremely cheap.

    Reply
  11. John @ Married (with Debt)

    I know how you feel. I held out until we had two kids. It's important to recognize that insurance is not for everyone, but that it makes sense when circumstances change.

    Reply
  12. We're in the same situation. No kids, still young. I have life insurance through work (it's mandatory and paid for by my employer) and I really don't think I need more. I'm not sure how much my employer pays on my behalf, but if I were to die, my beneficiary gets 4x my annual earnings.

    Reply
  13. The only reason that I could see you needing it is if you have student loan debt that a parent co-signed for. I can't remember you mentioning anything about that but other than that you probably won't need it until you buy a house.

    Reply
    1. I agree. If anyone has co-signed any car or student loans, the extra money doesn't hurt for them to pay it off, just name those who co-signed as the beneficiaries or write your will to get the right amounts.

      I guess the question is. why would you Not buy insurance? If you can afford it, a $250K policy will be like a trip to Startbucks (drink + those yummy muffins). Insurance is about mitigating future risk and the future is unknown.

      Reply
  14. I agree with you not really needing it Daisy. Should anything happen to you, there isn't anyone depending on your income. I am in the same boat as you, just a little older. I plan on getting term coverage when I have children/a family. Until then, I see it as an unnecessary expense.

    Reply
  15. Most of the quotes you get for $100 or $200 per month are whole life policies that are just not a good idea, if you ask me. (the reason they get sold on so much commission is because they're so expensive!).

    Yesterday I got a quote for a 20 year term policy for $1,000,000 worth of coverage and it was $36.25 per month if paid annually and $38.06 if paid monthly. I'll be 34 next month. So if I got that (I already have a policy in place that takes me until I"m a little over 60) then I could bay $36.25 per month and if I died, my wife and kids could not have to worry about money (unless my wife decided she wanted to significantly up her lifestyle, which is not her style).

    But unless someone is depending on your income (if you own a house with someone, have kids, have cosigners on loans that don't die when you do, etc.) and you don't have enough assets to cover them if you die, you probably don't need it yet.

    Reply
  16. If no one else co-signed on any of your debt, then no one is dependent on your income. I think you are in the right position for right now. Once you have any dependents, definitely get a policy to cover them for at least 10 years (assuming proper money handling). I pulled out a policy that should cover my family for life should the worst happen to me.

    Reply
  17. $300/mo out of your own pocket seems like a stupid amount to throw away when you're young with no dependents! Why not just put $300 in a savings account and tell your partner/family they can have it if you die?

    I have life & disability insurance through work that offers more coverage than I would ever, ever need but I love knowing its there.

    PS. LOL. That is all.

    Reply
  18. I wanted to write a comment about internet stalkers, but decided it would come off way, way too creepy if I tried. *sigh* so much for humour.

    $300 is nuts. Does one of them have a serious health issue?! Have they signed up for $10M in coverage?
    I got life insurance as a birthday present, so unless I have kids or start a business, I shouldn't need any more. I also have some via my employer.

    I would recommend that you evaluate life insurance options/costs/logistics when you purchase a house. Do not buy mortgage insurance, as that only covers your mortgage balance, get plain ol' life insurance to allow your partner flexibility. Be logical about it though, looking at whether or not your partner will be able to afford all of life alone, and what amount would be needed for bridging costs (ie, inability to immediately sell your car, cancel your car insurance, cancel your cell phone, etc).

    Reply
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  20. We both have Term Life and are in our 30's with no kids but we do have a mortgage and certainly were not getting mortgage insurance. Mrs. CBB has had life insurance for a while now as she wanted to get it when she was young and healthy. We pay $135 a month but that's smokers rate. We are 7 months into quitting smoking so we are hoping to see that drop early next year. It's a personal choice and for us it makes us feel comfortable that in the event something should happen there is money around for the other or anyone who should need it in the family. Cheers Mr.CBB

    Reply
  21. I was in my early twenties why I purchased my Variable Universal Life policy. It works for me and my long-ter strategy. $300 does seem like a lot, but as you pointed out without understanding what was going on, it may not have been. Based on your experiences, I can understand how life insurance has a negative connotation.

    Great post!

    Reply
  22. Not having kids is a huge factor Daisy. In my opinion, one of the primary purposes of life insurance is to assist the living spouse if the other passes. I can't imagine how hard it would be to all of a sudden care for child and handle everything life throws at you.

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  25. I never had it when I was younger either, even though I had a financial advisor for a father who was constantly telling me I should be insured! Now I have a wife and children though I see it as the most important insurance I can have, life is full of the unexpected.

    Reply
  26. $300 per month is ridiculous!! I've got over $1M in Term for 30 years and I still don't pay that much. They probably got sold on Permanent Insurance which people try to tell you "is a great investment!" But its not! You can do way better investing the money yourself.

    You're right - if you get married and have kids and a mortgage, then you need it. And you need Term. Otherwise, skip ...

    Reply
  27. Asia

    My husband and I pay $32 a month for mortgage insurance. If one of us died the mortgage gets paid in full. It's not life insurance but I feel like it's good enough. We both have good jobs and our finances are based on one income. If something did happen either of us would be okay financial; even if we didnt' have thr mortgage insurance. I can justify the security for $32 but $300 is steep!

    Reply
  28. Hannah

    In my early 20's I too thought about life insurance but decided to pass on it - it didn't make sense for me. Now that I have kids, it makes total sense but I don't go overboard on it either. I consider it a safety net and that's it. Glad to find your site .

    Reply
  29. $300/month sounds crazy. I agree in that I'm not gonna get it until after I'm married or have kids, but I definitely don't want to pay that much for it. Also, I'm also covered by my work too which is nice though once I need real coverage I'll definitely buy it.

    Reply
  30. I feel the exact same way about life insurance right now. It's not really an expense I need to pay. I have no dependents, my debt would be covered through my life insurance at work, and I'm still young. I'd rather keep that $300 and sign up for some fitness classes - that seems like a better kind of life insurance for me...although, it won't really matter how fit I am if I forget to look both ways when crossing the street and get creamed by a truck 😉

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  33. I'm so with you. No insurance for me. Once I have kids, sure. But for now it's just fine ! And here's hoping your internet stalkers just keep on a stalking from afar. 😛

    Reply
  34. Sandy

    Like you, I too opted out in my twenties. No one else would be responsible for my debts if I died nor was anyone dependent on my income. I'm 34 now and just looking at buying life insurance (outside of work) because I am just ready to be married and possibly have a family. They'll need to replace my income if I keel over.

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  36. We actually are with our insurance agent because C overheard the following coversation between him and a nother member of his bowling league (C worked at the alley at the time)
    Youg Guy (YG): Hey, I need to talk to you about life insurance
    Insurance Agent (IA): Sure, no problem. I didn't realize you had kids.
    YG: I don't
    IA: Planning on getting married soon?
    YG: No
    IA: Do you have younger siblings you're worried about your parents not being able to take care of?
    YG: No
    IA: Then you don't need life insurance. You should be putting your money toward retirement.

    Reply
  37. I felt the same way up until I was diagnosed with AVM. Now I'm freaking out because, if something happens to me, my unemployed husband is going to have a hard time paying the bills. He tried to convince me to get life insurance late last year, but I was too busy paying off debt. Luckily, we don't have any joint debt, and he wouldn't be held responsible for my medical bills because we've kept all of our debt/finances separate up to this point. I always thought it was silly when people said they wanted to leave enough money for their family to pay off their mortgage or live a well-off life (assuming one person could pay the bills without the other). But now that I'm facing something that, frankly, could kill me... I wish I had signed up for it back when it was going to be inexpensive. I'd be feeling a lot better about the prospect of death if I knew David was going to be able to pay the bills and finish school without me.

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