The amount you make and how active you are (marathon props!) have little to do with whether or not you should by life insurance. And really, little does your age.
What matters? Two things:
- How much your wife and kids are, and would be, dependent upon your income.
- How much you care about their lot in life if you die prematurely.
If that sounds harsh, it is not intended to be. It’s simply gets to the heart of the matter.
From the information you provide in the question details, it sounds like you think that life insurance is a waste of money because you are in good physical condition.
First, it is not uncommon to read about perfectly “healthy” individuals who die unexpectedly. Second, you wouldn’t have to dig far to find that at your age there are plenty of deaths caused by things other than those exacerbated by poor life habits.
At your age 51:
- The #4 cause of death is by poisoning. (yep, poisoning)
- The #13 cause of death is road accidents.
- Influenza #15.
If you are as healthy as the question suggests, the cost of $250,000 of 15 year term life insurance could cost under $40 per month. $500,000 would go for about $70 monthly.
Should I buy life insurance? If so, why?
Only you know the answer to questions #1 and #2 above.
Consider those two questions and the quotes provided above. You can weigh your priorities against the cost and make a decision that best suits the financial priorities of you and your family.
Thanks for the A2A.
Let's say tomorrow your house were to burn down. How badly would that affect you? If you have millions of dollars sitting in a savings account, it'd be no big deal. You've basically self-insured against this kind of catastrophe. If everything you own is in that house, it'd probably hurt quite a bit. Since the loss of your house would be devastating, it's a good idea to buy homeowner's insurance to make sure that should the worst ever happen, you won't be living on the street.
When it comes to life insurance, you're basically asking the same questions except relating to your own death. What would happen if I died? What measures do I want to take to make sure those things don't happen? In my own case, I'm a 29-year-old guy. The only people I care about financially are my girlfriend and my parents. All three of them make more money than I do. The only financial consequences my death would cause them is the price of my funeral, and the life insurance policy I have through my job is more than enough to cover that. There is no reason for me to get life insurance. They will be emotionally hurt a great deal by my death, but it will not leave any of them destitute and desperate.
What is your situation? To what degree are people you care about dependent on the resources you provide in order to survive? What would happen to your wife and kids if you died? Would life go on more or less as usual? Or would they be destitute? Are there things you want to make sure happen, like sending your kids to college? Will they still be able to do those things if you die, or are those plans impossible when you're not in the picture?
Only you can answer those questions. It's your call. You're buying peace of mind and safety for your family, just as you are with any other kind of insurance. Whether you think that's a waste of money or absolutely vital depends on your own perception of risk and how devastating your death would be. Advising you beyond the information I've given you would be inappropriate over this medium, especially since I'm no longer a financial adviser, and since you haven't given me nearly enough information to give a real recommendation. I hope this has helped you see the whole picture though.
Good luck in your decision.
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