◉ Expert Analysis
Should I get life insurance?
Analyzed by 4 domain experts
If anyone depends on your income, term life insurance is non-negotiable. Skip whole life.
A healthy 30-year-old can get $500K in 20-year term coverage for $25-35/month. Whole life costs 5-10x more and is a terrible investment vehicle disguised as insurance. Buy term and invest the difference.
◉ Expert Perspectives
“Term life insurance is the best deal in financial services. Whole life is the worst.”
A 30-year-old non-smoker pays $25-35/month for $500K in 20-year term coverage. Whole life for the same coverage costs $250-400/month. The extra $200+/month invested in index funds for 20 years produces $100-150K, far exceeding the cash value accumulation in a whole life policy.
“Life insurance proceeds are income-tax-free. It is the most efficient wealth transfer tool for families.”
A $1M term policy costs $50-80/month for a healthy 35-year-old. The death benefit is income-tax-free and can cover mortgage payoff, 10 years of replacement income, and college funding. If you have dependents and a mortgage, coverage equal to 10-12x annual income is the standard recommendation.
“Once your investments exceed your coverage need, cancel the policy and self-insure.”
Life insurance fills a gap between your savings and your family obligations. As your net worth grows and your children become independent, the need decreases. A couple with $2M in investments and no mortgage has no need for life insurance. Reassess coverage every 5 years.
“The life insurance industry makes most of its money selling products people do not need.”
Universal life, variable life, and indexed universal life are complex products with high fees and surrender charges. Commission-based agents push them because they pay 10x the commission of term policies. If an agent recommends anything other than term life, get a second opinion from a fee-only advisor.
◉ Your turn
Get a personalized verdict for your situation
This analysis covers the general case. Your specific circumstances matter. Run your own simulation with 8 AI experts who consider your unique details.
Run your own simulation →◉ People Also Ask
What does a fee-only insurance advisor think about “should i get life insurance?”?+
Term life insurance is the best deal in financial services. Whole life is the worst. A 30-year-old non-smoker pays $25-35/month for $500K in 20-year term coverage. Whole life for the same coverage costs $250-400/month. The extra $200+/month invested in index funds for 20 years produces $100-150K, far exceeding the cash value accumulation in a whole life policy.
What does a estate planning attorney think about “should i get life insurance?”?+
Life insurance proceeds are income-tax-free. It is the most efficient wealth transfer tool for families. A $1M term policy costs $50-80/month for a healthy 35-year-old. The death benefit is income-tax-free and can cover mortgage payoff, 10 years of replacement income, and college funding. If you have dependents and a mortgage, coverage equal to 10-12x annual income is the standard recommendation.
What does a financial independence advocate think about “should i get life insurance?”?+
Once your investments exceed your coverage need, cancel the policy and self-insure. Life insurance fills a gap between your savings and your family obligations. As your net worth grows and your children become independent, the need decreases. A couple with $2M in investments and no mortgage has no need for life insurance. Reassess coverage every 5 years.
What does a insurance industry analyst think about “should i get life insurance?”?+
The life insurance industry makes most of its money selling products people do not need. Universal life, variable life, and indexed universal life are complex products with high fees and surrender charges. Commission-based agents push them because they pay 10x the commission of term policies. If an agent recommends anything other than term life, get a second opinion from a fee-only advisor.
◉ Related Questions