I have recently been thinking about getting rid of my life insurance policy. I have done some research and the main reason for having it is to protect your spouse, significant other and or dependents. Happily, I have none of the above. Another reason for having a policy is to cover funeral expenses and burial costs. I have made it very clear that I do not want to go out in a box in the ground. Burn me up and spread me around, that is what I say. Here are my wishes for my final resting place. Oh, I just thought of another one. I want my ashes to go up in a model rocket. “Good Night Sweet Prince.” So with the cost of a cremation being about $1,000, which you will probably find in my couch cushions as you are cleaning out my house, why do I need life insurance? And if the couch cushions don’t cover the bill, I am sure the sale of my vehicle and home should cover the rest.
Life insurance is also handy if you have a substantial amount of debt. The only debt I currently have is by mortgage, but according to my last tax bill, my house is worth three times what I owe.
The strongest argument that my life insurance agent, who conveniently gets paid indirectly through the premiums that I pay, could make for keeping a life insurance policy was "that maybe I want to leave a legacy". Me a legacy....please.
Unless I am missing something, someone make a valid argument for keeping this life insurance which is now at about $500 a year. $500 a year, that is 5 concerts with really good seats.
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Heh Rickie- I agree that if you have no dependents that you really don't need life insurance. However, the cost of the funeral/cremation need to get paid right after your death, whereas it will take awhile to get the proceeds from your house and car since they will go into probate (unless you set up a trust). So you may want to have a very small term life insurance policy which should be a very minimal cost. I pay $23 a month for $250,000 of term life insurance policy since I have a kid. Obviously you would need a fraction of that amount unless you think your family will cover the cost of the funeral (which isn't cheap). I'm wondering if you have a whole life policy, which is also a savings vehicle and would have a cash value, and in my opinion, a waste of money. Or you could keep the life insurance and name your neices and nephews as beneficiaries. Just my two cents.
Shauntelle
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