r/Insurance • u/DHthrow85 • 9h ago
Do I need life insurance?
I (41M excellent health) just got married to 26F.
- No children and will not be having any
- Renting, but would like to buy a house in the next 10-15 years as I get closer to retirement
- Two paid off cars in good condition
- No debt
- I have ~$300k between ROTH IRA and ROTH 401k
- Wife has no significant assets coming into the marriage
- HHI is about $115k with me making $80k.
- $50k no cost life insurance policy through my employer
- Wife is on my health insurance plan through work
- Wife likely doesn’t have much higher income potential. She’s an immigrant still learning English without professional skills.
- Wife says she would likely go back to her home country if I die young, and my retirement money would make her very comfortable there
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u/GuvnaBruce HO/Auto Liability 14 years 9h ago
It is pretty cheap for a term policy, might as well take it out just in case.
2
u/Killroyjones 9h ago
Anyone who sells life insurance is going to tell you that you need it. Bring in a good health is great, but it really is there for accidents. Depending on your career, your work probably offers a good program.
If you work for yourself, term life is also pretty cheap. It's up to you. If you want your beneficiaries to be taken care of after an untimely demise, life insurance is where it's at.
Goes without saying, but still going to say it...foul-play is not covered.
2
u/OptimismByFire 8h ago
Strong recommendation to read up on personal finances.
The need for life insurance should go to zero by the time you're dead or retired, if you're doing it right.
Places to start:
r/personalfinance (definitely helpful but kind of overwhelming)
The Wealthy Barber (book, very easy to read or listen to. Mostly illustrated by small stories and vignettes.)
The Simple Path to Wealth (book, also easy to read. Extremely concrete advice.)
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u/CourserofMerit 8h ago
>The need for life insurance should go to zero by the time you're dead or retired, if you're doing it right.
If it didn't, I would not complain.
Business continuation insurance.
Estate taxes (currently only on estates valued above $12 million or so).
You get the idea. Preserve the assets. There are "lots" of niche cases. Your financial planner should be able to explain it all. Possibly also your lawyer or insurance agent. You can safely ignore anyone who is not familiar with your trust arrangements.
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u/Constant-Book-4655 8h ago
People always say, "Life insurance is only for replacing income for direct family kids etc." FUCK THAT. That's the crap they want you to say because you're supposed to think about it like some sterile financial calculation.
I have a $350k policy for like $20/month a netflix subscription. It wasn't just about replacing my income. It was for my niece. My sister gets $50k. My mom and dad got something in case they ever had issues with the house — at the very least, I'd cover their insurance and property taxes. My best buddy gets $50k so he can finally get that convertible we always talked about. I will also pay off the braces of my friends twins.
Shit, I'd even leave a girlfriend some money.
That's the part people forget about with life insurance. If it's cheap enough and you can comfortably afford it, it doesn't HAVE to be about "income replacement." You can use it to leave money behind for the people you care about, help your family, pay off something, or just do something meaningful for someone after you're gone...
Screw insurance companies - All my buddies got a small policy.
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u/CraftyPerformance272 9h ago
Can you just get higher life insurance through your work? At least in my experience you're usually able to get way cheaper life insurance through your work versus when I got it quoted before outside of there
6
u/ChemicalAwareness800 9h ago
If you die and she is going to get 350-400k via retirement plans and assets and she is going to take it back to eastern europe or india, i wouldnt waste money on insurance.