Life insurance is a pretty boring topic, right? At least that’s what I’ve always thought. But then I became self-employed and lost the company-paid policy that I always took for granted. It occurred to me that I needed to find some way to make sure my son is taken care of in case I die in a freak accident. Not that I enjoy thinking that way, but how many people know when they’re going to die and have time to prepare? Very few.
My situation is interesting because, while I’m raising my son on my own, my ex-husband does still exist and should take over responsibility for Jayden’s well-being if someone happens to me. Notice the word “should.” To be honest, I can’t depend on him for anything, even when it comes to our child. So I have to plan ahead.
There are tons of articles online that provide a basic overview of the types of life insurance policies you can purchase. I’m not going to get into the “term life versus whole life” debate here because this post would be 100 miles long, but it’s important to know what you’re getting when you sign up for a policy. The last thing I want to do is die thinking everything is peachy when I’m really leaving a big mess for my family to clean up. If I’m going to pay for something, it better provide for my son’s needs if I’m gone before he’s able to take care of himself!
Budgeting for Life Insurance
When I left my job last winter, I had to work the cost of a private life insurance policy into my monthly budget. I added a small policy to my health insurance plan, but it would basically only be enough to pay for a burial. I knew that I could get a decent rate since I’m young and relatively healthy, so I decided to run some numbers through a life insurance budget calculator to see how much I could get.
I was shocked to see that, based on the calculator, I could get a $1 million policy for as little as $25 a month. Of course the actual pricing depends on a number of factors – that was just a generic estimate based on age and gender – and my actual policy isn’t quite that amazing. Still, I figured life insurance would cost a lot of money and I was surprised to find out that it doesn’t. Especially when you’re young.
Who Needs Life Insurance?
If someone else depends on your income, you need life insurance. It’s that simple. Since I have a teenage son, there was no question for me – I have to be able to meet his needs even if I’m dead (at least from a financial standpoint). Knowing that he’ll be taken care of allows me to worry less about what would happen if I die young and more about what’s happening right now.
Do you have adequate life insurance coverage? Does it squick you out to talk/think about dying?