The first time I considered buying life insurance was when we moved out to the rural area we live in now. We were living below poverty level for so many years that life insurance was nowhere on my radar until that time. The main thing that prompted me was my long commute. At the time it seemed like hundreds of miles away, when it was in fact just less than 50 miles, and of course nowadays having made the drive for so many years it doesn’t seem like all that far. But back then having lived in the city all my life, it was something I had to get used to. I remember thinking how interesting it was that when we lived in the city there were more stop lights on my 3 mile drive to work than my 50 mile drive once we moved rural. The nearest stop light to my home right now is about 17 miles away and most of my drive is highway miles. At any rate, the long drive was a concern, I had never had to drive so many miles from home. I did some research and found a policy that was less than $20 a month with $50,000 coverage. At the time, Mr. A was the stay at home parent and our mortgage was $53,000. We figured if I was in an accident while driving to or from work, at least most of the mortgage could be paid in full.
It was pretty easy to get the policy set up. I filled out the paperwork and sent it in, and a nurse came to my office at work one day to do a quick physical to verify that I was in good health. A direct withdrawal was set up on my checking account, and that was the last I’ve heard of them. Every month like clockwork they remove the money from my account.
According to this article: Life Insurance 101, it seems as if I have term life insurance: “Term life is the simplest and least expensive type, since it pays your beneficiaries only if you die while the policy is in force. Term periods usually range from 5 to 30 years. Premiums increase according to your age and overall health, but several other features can also affect the cost and benefits received.” The “simple” and “least expensive” meet the bill, and I understood my policy was pay only if I died while it was still being paid, however, I didn’t realize that there was a time period for life insurance. I have been going along all these years assuming that whenever I die, there will be a life insurance policy to be cashed out for my beneficiaries. My premiums have not increased, and in fact my health has gotten better. I am going to have to take a look into my policy and see exactly what I am paying for!
I was just telling Mr. A the other day that I am glad to have this insurance policy because at least there is some money that would come about if I were to die. I would like my children to have something when I die.
I would like to have more money put aside, but first we have to get out of debt. First things first.
Do you have life insurance? Do you think it is something that only older people should have?