I am a single man, 37, with no children or even siblings. I most likely (90%) will not have any children in my lifetime. Is it beneficial for me to have life insurance? I currently have the following:
A group life insurance plan through work for $110K. Obviously, this will terminate if I ever leave my current job.
I also have a $50K TERM life insurance policy that I got over 10 years.
Lastly, I have $5K WHOLE life insurance policy my parents had gotten me when I was a baby. It currently has a cash value of $3K and a death benefit of $6K.
I was thinking of cashing in the whole life policy and possibly even terminating the term policy but I am not sure if that is the right thing to do. I don’t want to drop things that I would not be able to get when I am older, but I also don’t want to be overly insured. And being that I probably won’t have any dependents in my older years, I would want to have some money to pay for my own funeral needs. I currently do have a decent savings and 401K.
So anybody have ideas?
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Personally, I would say “No”.
I don’t have any dependents and my assets greatly exceed my liabilities so I do not have any life insurance at all.
If no one is dependent on you for financial support, then it is a bad idea to get life insurance. Put away $10-15k in a savings account for a funeral, specify the purpose of that account in your will….and be done with it.
No since you do not have to ensure that your spouse and children have the funds needed to survive.
You can prepay for a funeral
Your debts get paid out of your estate and no relative is responsible for them
You should have a will naming someone as executor to close out your affairs
Your savings accounts and 401k should already have designated beneficiaries such as parents or siblings
Do you need a chain saw?
Life insurance is a financial tool. You don’t go to Home Depot and start buying up tools, unless you have a NEED for them. Do you have a financial goal you need this life insurance to ACCOMPLISH?
If the only goal is paying for your funeral, you can do that NOW, out of your bank account. You don’t need insurance for that.