Financial Travel Tip #14: Do you Need Life Insurance?
By theprofessionalhobo ~ February 4th, 2012. Filed under: Financial Travel Tips.
A while ago we talked about travel insurance with its pros and cons. Some aspects you need, while others you can omit and save your money.
But do you need life insurance when you travel?
I believe the answer to this would be the same regardless of whether you are traveling or not: it depends.
Some of the factors that affect whether or not you need life insurance (and in turn what kind of life insurance you need) include your current financial situation, whether or not you have dependents and/or a partner, and your estate planning needs. (Don’t know what an estate plan is? Stay tuned for next week’s tip!)
I believe in insurance, but I also believe it’s possible to over-insure ourselves, thus spending too much money on insurance premiums and not having as much in the budget for the things we like to do while traveling. With the right knowledge about what our needs are and what insurance plans can satisfy those needs, we can get just the right amount to protect ourselves (and our loved ones) from financial ruin in the event of “life happening while we’re busy making plans”.
Want to test your knowledge of life insurance and determine your needs? Check out this Financial IQ Test to see how you measure up.
Financial IQ Test: Life Insurance
February 4th, 2012 at 12:47 pm
Take it from “grandpa” here: Why get life insurance if you don’t have any dependents, and if you do, just get term. A set amount for a given length of time (as during a “term”) usually at a even cost per year. E.g. enough to get your kids through college.
Most financial experts (like people who don’t sell life insurance) will tell you that whole life insurance is typically a lousy investment vehicle. Put your money elsewhere and just buy term…if you even need that.
February 4th, 2012 at 2:59 pm
@Frank – Agreed! And for the record, I used to tell people that, even though I sold life insurance!