Why You Need Life Insurance

This post is part of the Life Insurance Movement.  To learn more and read other bloggers’ perspective on life insurance, visit Good Financial Cents.

My uncle’s friend had decided to discontinue his life insurance; the form, unsigned, was sitting on his bed, when he had a heart attack and died.  Because he hadn’t yet signed the form, his widow received the life insurance payment which helped her survive and live a comfortable financial life after his death.

My parents didn’t feel that they could afford life insurance, but they did take advantage of the free policy my dad was eligible for at work as well as the free policy at their credit union, which was a good thing.  My dad died of colon cancer at age 38, just 4 months after receiving his diagnosis.  There was enough life insurance for my mom, a homemaker, to pay off the house, but there wasn’t much left beyond that.  A good life insurance policy would have given her money to invest so she could have continued to stay home with my brother, who had cerebral palsy and needed care throughout the day and night during his lifetime.

Because of my experience with my father, my husband and I signed up for life insurance when our son was just an infant.  I have seen what life is like without the safety net of life insurance, and it isn’t good.  My mom has struggled financially in the 26 years since my father’s death.

Why We Pay for Life Insurance

My husband and I wanted to make sure that if one of us died, the other would be able to invest the money and live off the interest.  At the least, we wanted to have an amount of time where we could focus on caring for our family and not worry about money.

The life insurance will help pay for our children’s college.  If I die, the money will help my husband hire a caretaker for our children; if my husband dies, the money will allow me to continue my freelance career, working from home, and supplement my income so I can provide for the children.

Death Is a Reality—We Just Don’t Know When It Will Happen

No one wants to think about dying, but we all are going to.  Hopefully we live long lives, but just take a minute to face the scary possibility of something happening to you or your significant other.  How would you survive financially?  How would your spouse?  If you both passed, how would the legal guardians provide for your children financially?

If you don’t have life insurance, these questions become very difficult to answer.  If you do have life insurance, you may feel pain at thinking of the loss of your spouse, but you won’t be concerned about the financial aspect of such a loss.

Life insurance is now more affordable than ever.  You may think you don’t have the money to buy it, but I urge you to evaluate your expenses.  We are trying to pay off debt at gazelle intensity.  Sure, the $77 we pay every month for life insurance would be a nice chunk of money to put on our debt, but that is short-term thinking.  I prefer to pay down debt just a bit more slowly so I can pay our life insurance premiums and know that our family will be taken care of financially if my husband or I die early.

Do you have life insurance?  If you don’t, what is holding you back?


  1. After reading that you pay for life insurance a few months back you inspired me to get it also. Mine was because of cancer scare. I am ok now but for 2 months we lived with the fear of what if. What if it spreads, what if they can’t remove it, what if I am so weak I can’t take care of my 4 kids? That’s when we shopped around and got some security. I would love to have my husband and he me but if something happens we want to be able to focus on the kids like they need and not have the fear of what if.

    • I love your story. That is exactly why everyone needs life insurance. Death is hard enough without financial turmoil thrown in. Plus, it is easier to sleep at night knowing your family is protected.

  2. Mary Janssen says:

    Good advice.

  3. I don’t have life insurance and I explained why in my post today at my blog. Basically I have no dependents and my assets would more than cover my liabilities if I died. If I ever have a kid though I’ll definitely be getting life insurance.

    • We didn’t have life insurance until our son was born, though perhaps we should have. It might be a good idea to buy before having children if the surviving spouse couldn’t afford to stay in the home,etc. if the other spouse died.

  4. Congrats on being one of the winners in the Life Insurance Movement with this post!

  5. Moving post and congrats for winning. Baby Buck is 6 months now. Do you have recommendations for life insurance companies?

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