# Do you have life insurance? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [August 23, 2006, 9:30pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945 "2006-08-23T21:30:07Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![newcrasher](https://avatars.discourse-cdn.com/v4/letter/n/b3f665/32.png) [@newcrasher](https://boards.straightdope.com/u/newcrasher)\ **Post date:** [August 23, 2006, 9:30pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/1 "2006-08-23T21:30:07Z")
I have recently had a death in my family. My grandfather had a nice annuity and a life insurance policy that will provide for my grandmother as she ages. The situation got me thinking about people who die without life insurance. I guess the family is just screwed, unless they are independantly wealthy. Do you have life insurance? How many x your annual income do you have? If you do not, why don’t you? Is it too expensive? What would your family do if you were not here anymore to bring in whatever income you bring in? Also, do any of you have a serious argument against buying life insurance? Me first: I have 5x my income in 30 year term, and 5 x my income in permanent. ---
**Author:** ![freckafree](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/freckafree/32/3050_2.png) [@freckafree](https://boards.straightdope.com/u/freckafree)\ **Post date:** [August 23, 2006, 9:35pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/2 "2006-08-23T21:35:17Z")
> [@newcrasher](#): > > Me first: I have 5x my income in 30 year term, and 5 x my income in permanent. That’s about what I have, plus my employer provides a 1.5x salary policy as part of my benefits. ---
**Author:** ![Bosda\_Di\_Chi\_of\_Tricor](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bosda_di_chi_of_tricor/32/16845_2.png) [@Bosda\_Di\_Chi\_of\_Tricor](https://boards.straightdope.com/u/Bosda_Di_Chi_of_Tricor)\ **Post date:** [August 23, 2006, 9:36pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/3 "2006-08-23T21:36:48Z")
I have no wife or kids. I want a cremation without ceremony. The minimal life insurance I have should cover it. ---
**Author:** ![Khadaji](https://avatars.discourse-cdn.com/v4/letter/k/9e8a1a/32.png) [@Khadaji](https://boards.straightdope.com/u/Khadaji)\ **Post date:** [August 23, 2006, 9:44pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/4 "2006-08-23T21:44:21Z")
My company has insurance for 2 X my annual income. I have independant insurance to cover my cremation. I don’t have a family to worry about anyway, so it is moot. ---
**Author:** ![Hampshire](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hampshire/32/4887_2.png) [@Hampshire](https://boards.straightdope.com/u/Hampshire)\ **Post date:** [August 23, 2006, 9:45pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/5 "2006-08-23T21:45:27Z")
I never had it when I was single. I figured my possesions would pay off any debt I had. Once I was married and my wife got pregnant I took out a 30-year term for 5x salary. Leaving my wife a single parent with a motgage would not be nice. It runs me about $20 a month. ---
**Author:** ![Gala\_Matrix\_Fire](https://avatars.discourse-cdn.com/v4/letter/g/4da419/32.png) [@Gala\_Matrix\_Fire](https://boards.straightdope.com/u/Gala_Matrix_Fire)\ **Post date:** [August 23, 2006, 9:46pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/6 "2006-08-23T21:46:44Z")
Nope, I have no dependents and I am doing just fine financially. Whoever gets stuck planning my funeral should have no troubles at all, and I’m leaving no debts. ---
**Author:** ![gigi](https://avatars.discourse-cdn.com/v4/letter/g/a587f6/32.png) [@gigi](https://boards.straightdope.com/u/gigi)\ **Post date:** [August 23, 2006, 9:49pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/7 "2006-08-23T21:49:51Z")
I have no family so I opt for the basic plan through my employer: $5000 for my “final expenses”. My retirement account would be able to pay off my not-crazy-hgh debt and the rest gets donated. ---
**Author:** ![newcrasher](https://avatars.discourse-cdn.com/v4/letter/n/b3f665/32.png) [@newcrasher](https://boards.straightdope.com/u/newcrasher)\ **Post date:** [August 23, 2006, 9:50pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/8 "2006-08-23T21:50:51Z")
OK- In addition to the other questions, would you ever buy a policy to leave it to a charitable organization you support? For instance instead of giving $20 a month to the a charity, buying a life insurance policy naming the charity as the beneficiary…sounds like a good idea… ---
**Author:** ![Moirai](https://avatars.discourse-cdn.com/v4/letter/m/96bed5/32.png) [@Moirai](https://boards.straightdope.com/u/Moirai)\ **Post date:** [August 23, 2006, 9:54pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/9 "2006-08-23T21:54:26Z")
Each of us has a term policy for 20x annual combined current earnings, plus another term policy each to pay off the mortgage,plus a bit extra. We have two kids. ---
**Author:** ![Inigo\_Montoya](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/inigo_montoya/32/124_2.png) [@Inigo\_Montoya](https://boards.straightdope.com/u/Inigo_Montoya)\ **Post date:** [August 23, 2006, 9:59pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/10 "2006-08-23T21:59:57Z")
I have a gob of it, 20 year term with 14 years to go. Just to make sure the kids are alright. Once they’re out of the picture then the policy runs out. Thenceforth my wife can punt in my absence for all I care. ---
**Author:** ![Antinor01](https://avatars.discourse-cdn.com/v4/letter/a/ecae2f/32.png) [@Antinor01](https://boards.straightdope.com/u/Antinor01)\ **Post date:** [August 23, 2006, 10:21pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/11 "2006-08-23T22:21:19Z")
I have a couple hundred thousand from work, though I’m also looking into a joint policy with my SO. We’re trying to buy a house and it would be a nice backup should something happen to one of us. ---
**Author:** ![wasson](https://avatars.discourse-cdn.com/v4/letter/w/4da419/32.png) [@wasson](https://boards.straightdope.com/u/wasson)\ **Post date:** [August 23, 2006, 10:22pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/12 "2006-08-23T22:22:19Z")
I work for a life insurance company, designing their website and a bunch of marketing materials, so I’m well aware of how important it is. They supply 3X my salary for free with a bunch on top for relatively cheap. I only partake in the 3X. I have very little debt, and my house could be sold to cover every dime I owe in this world. No wife or kids. If I kick the bucket soon, my parents will get a very nice check that will hopefully make up for the loss of their son. Or not. ---
**Author:** ![lightingtool](https://avatars.discourse-cdn.com/v4/letter/l/57b2e6/32.png) [@lightingtool](https://boards.straightdope.com/u/lightingtool)\ **Post date:** [August 23, 2006, 10:30pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/13 "2006-08-23T22:30:12Z")
I don’t have any. If I get killed on the job, my employer will give (I think) $5000.00 to my wife, but I don’t think that’s what the OP was talking about. I turn 30 this November, and life insurance is one of those ‘I guess I have to start acting like an adult’ things that’s on my list of things to do this year. ---
**Author:** ![Cunctator](https://avatars.discourse-cdn.com/v4/letter/c/43a26b/32.png) [@Cunctator](https://boards.straightdope.com/u/Cunctator)\ **Post date:** [August 23, 2006, 10:31pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/14 "2006-08-23T22:31:09Z")
I don’t have any for death/permanent disablement because my superannuation plan provides generous coverage. I do have disability income insurance. ---
**Author:** ![MLS](https://avatars.discourse-cdn.com/v4/letter/m/919ad9/32.png) [@MLS](https://boards.straightdope.com/u/MLS)\ **Post date:** [August 23, 2006, 10:32pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/15 "2006-08-23T22:32:44Z")
When my husband and I were first married, we had little or no life insurance since we did not own a home and each of us was quite capable of supporting him/herself alone. When we planned to start a family, we took out a lot more with a built-in “bubble” for the time when our children would be dependent on us. Now that our house is fully paid off and we have few debts, and our youngest child is 30 y.o., we figure the minimum is sufficient. I think both of us have something around $100,000 insurance, and it could probably be even less. My husband’s pension & social security would continue throughout my lifetime, so the only possible negative would be if I went first. I have about $400,000 in investment retirement funds that he would have to make do with, plus around $100,000 in life insurance. And a debt-free home. Plus his 92-y.o. mother also has a debt free home that will go to him. Point is that at certain times of life, when no one who can’t support him/herself is dependent on you, you really don’t need much life insurance. The only time we felt that a large amount was needed was when we had dependent children. My in-laws, OTOH, had no concept. My FIL died with no life insurance, leaving his family, which included a disabled son, with no assets, only debts. “I didn’t know we \*had \* to have life insurance.” Who did you think would pay off your mortgage, dumbass? ---
**Author:** ![jjimm](https://avatars.discourse-cdn.com/v4/letter/j/ba8739/32.png) [@jjimm](https://boards.straightdope.com/u/jjimm)\ **Post date:** [August 23, 2006, 10:33pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/16 "2006-08-23T22:33:49Z")
Just got it yesterday - after the first AIDS test of my life. Covers the mortgage for my wife, that’s it. I smoke, you see, so it would cost too much for anything else. She also gets a bonus of about $40K from the bank if I cop it - she doesn’t know about that. Don’t want her to get too busy with the arsenic… ---
**Author:** ![Damuri\_Ajashi](https://avatars.discourse-cdn.com/v4/letter/d/898d66/32.png) [@Damuri\_Ajashi](https://boards.straightdope.com/u/Damuri_Ajashi)\ **Post date:** [August 23, 2006, 10:44pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/17 "2006-08-23T22:44:34Z")
I have life insurance from work equal to one years salary, so does my wife. We have term insurance to pay off the mortgage. If/when I have kids, I will get term insurance equal to 10X my salary. (would cost about $100/month) The only real argument against life insurance is that on average you are better off taking that money and investing it in stocks. Life insurance protects you against an early death and annuitties protect you against outliving your assets. The biggest problem is that most people either can’t afford it or aren’t smart enough to recognize if they are getting a good deal or not, heck more than half the time, life insurance salesmen have no idea if the product they are selling you is a good deal or not. ---
**Author:** ![Giraffe](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/giraffe/32/129_2.png) [@Giraffe](https://boards.straightdope.com/u/Giraffe)\ **Post date:** [August 23, 2006, 10:45pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/18 "2006-08-23T22:45:14Z")
Eh, we have some through work. Something like $50k or so. With no kids and both of us having decent jobs, that’s more than enough. ---
**Author:** ![newcrasher](https://avatars.discourse-cdn.com/v4/letter/n/b3f665/32.png) [@newcrasher](https://boards.straightdope.com/u/newcrasher)\ **Post date:** [August 23, 2006, 11:12pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/19 "2006-08-23T23:12:27Z")
> [@col\_10022](#): > > The only real argument against life insurance is that on average you are better off taking that money and investing it in stocks. OK. What would make more sense as to protecting my family? Invest $100 a month in a mutual fund that returns 7% or invest $100 a month in a permanent policy with a $100,000 death benefit that also builds some cash value? Assuming my goal for this money is to protect my family in case of my death, at what year do I have enough in my mutual funds to justify not having purchased the policy? Also, wouldn’t the growth on the mutual funds be taxable when my beneficiary withdrew it? I am not looking for professional advice here, just opinions from Doper’s in the know. ---
**Author:** ![Governor\_Quinn](https://avatars.discourse-cdn.com/v4/letter/g/d26b3c/32.png) [@Governor\_Quinn](https://boards.straightdope.com/u/Governor_Quinn)\ **Post date:** [August 23, 2006, 11:15pm UTC](https://boards.straightdope.com/t/do-you-have-life-insurance/369945/20 "2006-08-23T23:15:56Z")
I do not have any life insurance in my own name, but I am covered in my family’s policy. Due to my age, lifestyle, and income, it would not make sense for me to have an independent policy at this moment. [Next page](https://boards.straightdope.com/t/do-you-have-life-insurance/369945.md?page=2)