- Lack of money.
- Too busy.
- Too busy and lack of money.
Whatever – all pathetic excuses. Thank God nothing has happened to me because what a colossal dick move that would have been to go out and marry my high school sweetheart, have four kids, then pass away leaving no means or assets to help them out once I’m gone.
Had I died before today, my wife would have needed to go back to work, no easy task for someone that’s been out of the workforce for the past 10+ years raising babies. She would have been a single mom, thrust back into the workplace to earn a salary that would probably be far less than we make today.
She would have been forced to raise 4 kids alone. Work a full time job. Cook meals. Tend to the house. Help do homework. And do everything else by herself, with no help from me because I didn’t have the foresight to get some life insurance. A tough job to say the least, yet one that is done on a daily basis by so many of you out there (hat tip to all you single parents – keep fighting the good fight!). In a sense, my death could have equated to the loss of BOTH parents.
- A $750,000 policy with Mass Mutual through Haven Life. That’s three quarters of a million, all tax free. Our cost: $52.00 $42.00 per month. (Update: I recently received an email from the good folks at Haven Life informing me that my policy rate was being LOWERED by $10 a month.)
- My employer offers a basic policy worth 1.5 x my base pay; again, tax free. This is offered at no cost to me.
- My employer also offers a voluntary policy of 4 x my base pay which costs me $40.83 per month. This isn’t a great deal actually, but I’m enrolled. I’ll need to look into this when my next enrollment period rolls around. This money will probably be better spent on a private insurance policy.
- If I die this year, my wife and kids will get a total of $4,165 per month in Social Security benefits. The way the government breaks this down is $1,784 a month for my wife, and $1,784 a month for each kid, but there is a hard cap of $4,165. Because I have four kids, that cap kicks in. Based on the age of our kids today, my family will be guaranteed to get the $4,165 amount each month until 2026. In 2027 they’ll get $3,568 per month. Starting in 2028, after our youngest turns 18, my wife will continue to get $1,784 per month for the rest of her life.
Do you have life insurance? If you’re already financially independent, is life insurance even necessary? what if you don’t have any dependents? Please leave a comment and let me know your thoughts. You can also share this on Twitter or Facebook by clicking on the icons below. Also, if you like what you read on Get Rich Quick’ish, you can leave your email address here and get new posts delivered right to you inbox. Thanks for reading!