After reading this have to think twice.
He basically told me that if I am a financially sound person, I am throwing my money away on life insurance unless I meet a few strict criteria (young, a relatively low net worth, and young children). This kind of blew me away considering he’s in the life insurance business, but when he broke it down for me, it made a lot of sense. Note that the advice that follows is based on a conversation between friends and shouldn’t be viewed as professional advice and you shouldn’t just follow it blindly without doing your own research, but it is quite interesting and worth sharing.
- unless you are a financial train wreck, you should never buy anything but term life insurance
- if you have no dependents and no spouse, don’t buy life insurance
- the more net worth you have, the less insurance you need
- think about your family’s needs carefully
- when your policy expires, don’t renew it immediately – recalculate