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I’ve been mulling over life insurance lately.

While I’ve always thought of life insurance as a non-negotiable expense, it appears that the personal finance community is torn on it!

On one end of the spectrum you have people who advocate for life insurance as a way to care for your loved ones and to replace your income once you pass away. On the other side, it’s an unnecessary expense and an insult to think your family can’t get by without you.

I’m firmly in the pro-insurance camp, and here’s why.

My experience without life insurance

Five years ago, my mom passed away suddenly.

She had zero life insurance, no will, and thousands of dollars of debt. She was the main breadwinner and handled all of the finances.

The lack of life insurance made this horrible situation five times more traumatic. Life insurance would have paid for a funeral, covered my mom’s debts, and given my dad help with the mortgage and other bills.

I’ve seen the painful consequences of losing a family member without insurance, and I never want to put anyone through that pain, either.

I’m firmly pro-insurance as long as you have any debt whatsoever.

I don’t think life insurance is a necessary expense once you achieve financial independence. At that point you have enough passive income and zero debt, which means life insurance would be a pointless drain on the finances.

Since we’re currently paying off student loan debt and then are tackling a car loan and a mortgage, I need to get life insurance.

Finding some damn insurance

Now that Mr. Picky Pincher and I are settled and have a few assets (and by “few” I mean our house), it’s time for me to draft a will and get life insurance. I plan on updating both of these once we have kids, too.

In the meantime I’ve been trying to hunt down some decent life insurance plans. I like to bundle everything with my current bank/insurer so I can get bundling discounts. However, I’m not a fan of their rates (non-term insurance is about $50 a month for a healthy 25-year-old person) and the fact that they require a doctor’s visit.

I thought this would be a perfect opportunity to enlist the help of my readers! What life insurance companies or plans do y’all recommend?

I’m not sure what type of coverage I would want, either. I know I at least need $10,000 to cover immediate funeral expenses. Ideally I’d like to have $150,000 to cover the mortgage so Mr. Picky Pincher could breathe easy—but I’m sure those monthly payments don’t look great. Womp womp. For now I’ll check out a few different options and see what works best for us.

The Bottom Line

Life’s a gamble and no one really knows when their time is up. Even though I’m young, it’s important to prepare for life’s twists and turns—especially while we’re in debt. I plan on having some kind of life insurance policy in place to take care of Mr. Picky Pincher in case something happens to me because it’s the responsible thing to do.

I’ll revisit the issue of life insurance once we’re financially independent, but for the next ten years it will be a good safety net as we build our net worth.

We want to know: Do you have life insurance?

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