Should You Invest in Life Insurance?

Life can be complicated. In your working years, many experts recommend life insurance. There are many types of life insurance, and the cost can be very affordable to expensive.

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Should You Invest in Life Insurance?
4 Min Read October 20th, 2022 Updated:March 23rd, 2023

When it comes to your financial future, you need to think about many things. Do you have a mortgage or other debt that needs to be paid off? Are your children starting university soon, or will they need costly post-secondary education? How will you fund your retirement? 

What will happen if you die before you're able to retire? Should you invest in some kind of life insurance policy instead? If you're an adult with dependents, thinking about life insurance may be ideal. Read on to learn more about why you might need life insurance and which type of policy may be the best for you.

What is Life Insurance?

Life insurance is a contract in which the insurer agrees to pay out a death benefit in exchange for a regular payment called a premium. This agreement exists between you and the insurer. You're the policyholder who pays the premiums. If you die while your policy is in force, your beneficiaries receive the death benefit. 

The death benefit is the amount paid out to your beneficiaries upon your death. Depending on the type of policy, death benefits can range from a few thousand dollars to several million dollars. The premium you'll pay is determined by the amount of death benefit you'd like your dependents to receive. 

For example, a $250,000 death benefit may cost about $46 per month for a 40-year-old man. There are two main types of life insurance: term life insurance and permanent life insurance. The type you need will depend on your specific circumstances.

What Kinds Are There?

You have dependents or debt that needs to be covered. Life insurance may help cover the cost of your funeral and any other debts your family may be liable for if they are left without a way to pay. 

If you're worried about your family's financial future, life insurance can be useful in providing your family with a reliable source of money while they find a new means of income. Here are different types of life insurance:

Term Life Insurance 

This package is a death benefit that is paid to your beneficiaries for a set period of time. When the policy expires, it expires with it. 

Whole Life Insurance

Whole life insurance is a combination of term life insurance and a savings plan. It's designed to provide a death benefit to your beneficiaries for the rest of their lives. 

Universal Life Insurance

It's similar to whole life insurance but with more flexibility. The death benefit can be adjusted at any time, and the death benefit may be paid to your beneficiaries as a lump sum.

Money Death Insurance

Money death insurance, also called cash-value life insurance, is a permanent life insurance policy. It can be used as an investment with a death benefit attached.

Where to Find It?

Before you shop for life insurance, you need to decide how much coverage you need. To do this, you could estimate your family's financial obligations in the event of your death. 

You could start by making a list of your family's financial obligations. What are the costs of your funeral? What level of debt do you have, such as a mortgage or student loan? What would your spouse need to earn to support the family? 

Once you have a clear idea of your family's financial obligations, you can start shopping for a life insurance policy. It's important to research and compare life insurance quotes from several companies. 

Remember, the premiums you pay may be the only thing you can control when it comes to life insurance. The higher your premiums, the more coverage you're likely to receive.

When You Don't Need Life Insurance

If you don't have any dependents or debt, you may not need life insurance since it's probably not worth the cost. If you're young and healthy, you may not need to get life insurance either. However, you should keep in mind that your living expenses will increase as you get older. 

The question of whether or not you should invest in life insurance may not come up until later in life. After all, when you're in your 20s or 30s, retirement can feel like it is so far away that it almost doesn't matter if you start saving for it now or later. But as you get to your 40s, it's likely to become a really important issue. 

If you have no debt and have a good cash flow, then you're probably in a comfortable financial situation. If your spouse will be okay without your income, you might be able to get by without life insurance. If your spouse has a good job and financial stability, life insurance may not be necessary. 


As your financial situation changes, so should your approach to investing. Getting married, buying a house, and having a baby can all have a big impact on your ability to save for the future. That's why it may be important to reassess your investing strategy from time to time as these events occur and modify how you prepare for what lies ahead. 

The fact of the matter is that unless something unexpected happens, retirement will eventually be here. And if you don't have enough saved up by that point, life insurance can help bridge the gap between what you have and what you may need.

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About the Author

Jeremy is a trained chef and freelance writer who is mad about all things health and fitness. He is constantly experimenting with new ways to live a balanced lifestyle and has a lot of knowledge, tips, recipes, and workout routines that he enjoys sharing with people who want to enhance their overall lifestyle.

LTC News Contributor Jeremy Banks

Jeremy Banks

Contributor since October 17th, 2022

Editor's Note

Once you are over 40, planning for long-term care is also essential. There are even life insurance policies that have qualified riders for long-term care expenses. However, don't confuse life insurance policies with chronic illness riders as long-term care. A qualified Long-Term Care Insurance specialist can review your options. 

Be prepared. The cost of long-term health care is exploding nationwide. You will have guaranteed tax-free resources to pay for your choice of quality care services, including care at home. Even a small policy can greatly benefit you and your loved ones.

Professional Help is Key to Finding Affordable Options

Several top-rated insurance companies offer long-term care solutions. Each insurance company has its own underwriting standards, and premiums can vary over 100% between insurance companies. 

A qualified Long-Term Care Insurance specialist will match you with the best company to save you money. A specialist will put together accurate quotes from all the top companies based on your age, health, family history, and other factors.

Accurate Answers to Your Questions About Long-Term Care Planning

LTC NEWS has many tools and resources. These resources can help you in your research as you prepare for your future retirement and plan for the costs and burdens of aging and declining health.

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