On the other hand, I really hate the fact that our monthly bills for all this coverage add up to well over $500. Over $500, every month, when I can’t remember the last time either one of us went to the doctor. I haven’t had an incident with the car since I was in college. And nothing has ever happened to our home. (And yes — knock on wood!)
I’m grateful that nothing has happened in the time that we’ve been paying for all the insurance we need to hold. But we did decide that we weren’t going to increase the amount of insurance that we have. For that reason, we make the conscious decision to not purchase life insurance.
My Problem with Life Insurance
In my experience, optional insurance — meaning insurance coverage you aren’t required to hold by law — comes with sleazy salespeople who aren’t interested in providing you with value and a product that you need. They’d rather push the package the offers them the best commission, not one that is suited to your unique situation.
Of course, this is probably really unfair assessment of the insurance industry. But it was my experience, and it irritated me to no end that someone who called themselves a qualified professional
encouraged tried to scare us into buying whole life insurance when we clearly did not need a product like that.
I’ve also been frustrated by the amount of content out there that says when you hit a life milestone like getting married or buying a home, one of the practical issues you need to handle is purchasing life insurance. While this may be true for some Millennials, it’s not the case for everyone!
Why We Passed on Life Insurance
The bottom line is that you only need life insurance if someone else depends on the income you make to survive. This means if you have kids, yes, you probably do want to look into a life insurance policy because those little guys completely depend on you to provide for them.
But my spouse and I aren’t interested in having kids. Here are the other reasons we decided not to bother with life insurance:
- We both work and make roughly the same amount. We don’t rely financially on one or the other.
- We don’t have student loan debt or credit card debt that would become a serious burden if one of us were to pass away.
- We do own a home, complete with mortgage — but the payment is manageable and we also have lots of equity in the home.
- We have money in the bank and in investments that would pass to the survivor.
Additionally, my spouse does receive a small amount of life insurance coverage for us via his employer. It’s only a $20,000 policy on each of us, but that would be enough to cover immediate needs in case the worst were to happen.
Do Millennials Really Need Life Insurance?
Yes, I can see where someone could argue that life would be a lot easier (financially!) if something were to happen and the surviving spouse did have life insurance to help make up for the loss of the double income we enjoy right now. But we’ve agreed we’d rather not add to our monthly expenses right now, especially as we could live off one income currently if we had to.
Everyone’s situation is unique and different. If anyone does financially depend on you, then you do need to look into getting some sort of term life insurance policy to protect your loved ones.
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And if you’re free from debt, don’t have many responsibilities, and are on the same page with your spouse, significant other, or involved family members? Then you can make your own decision on whether or not you need to purchase life insurance.