RT Cunningham


Life Insurance is for the Living - Is Life Insurance a Necessity?

life insurance Is life insurance a necessity? It depends on who you ask. Since life insurance is for the living, what happens when you’re not supporting anyone? When no one depends on you for anything?

Even if you’re leaving someone behind, there are other (not necessarily better) ways to take care of issues. In many cases, it’s not insurance for life you should worry about. Taking care of burial expenses is one such issue and some form of burial insurance could be a better choice.

Life Insurance Options

There are several types of life insurance and a Wikipedia page describes most of them. The right choice depends on certain variables. Things like your age, the ages of your survivors and the things still pending upon your death will decide the best choice. You need to select the right insurance policy for you.

The older you get, especially beyond 60 in the United States, the less likely you will need life insurance for anyone. Some survivors treat it like a bonus or something. I have a mother-in-law who treated my deceased father-in-law’s life insurance like that.

I have a friend in the United States who refuses to buy life insurance even though he can afford it. He’s in his 60s and he has no potential survivors.

Is a Social Security Pension enough?

I suppose it depends on the size of the monthly pension. Today, my wife, Josie, and I subsist on my military pension alone. I would like to get a large insurance policy for her, should I pass away suddenly, but our budget doesn’t allow for one.

Fortunately, she’s entitled to a death pension from the United States federal government because I’m a veteran of a foreign war. It may not be much, but it would allow her to get by until her social security pension kicks in (in about six years).

Josie is the only survivor who would rely on my income (until she turns 62, of course). She doesn’t need a bonus; she needs a monthly income. If worst comes to worst, she can always flee this place and live with one of our sons and their families.

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By RT Cunningham
July 5, 2017
Personal Finance