The benefits guy at work keeps telling me that I need to sign on to the company’s term plan. I’ve told him repeatedly that I don’t have a family, and I know of no one to whom I’d leave my possessions or money. However, he still insists that I need the coverage. For what reason would I need coverage under these circumstances?
Everyone is missing the point. If you’re dead, then why care if you have unpaid bills. You’re dead. Burying you or throwing you in a ditch will make little difference to you at that point. They can’t take from my family’s assets, because I have no family, and it’s not as if I’ll need my assets anymore after the fact. With this in-mind, now answer the question.

 

  • james m 1:07 pm on March 13, 2010

    You may not have a need for a lot of life insurance right now. But you do need at least enough for final expenses, including burial, any unpaid medical bills, other debts, etc.

    The younger you are when you buy life insurance, the lower the premium. You might need more in the future, so it might pay you to think about buying it now, while you are young and in good health. You will be "insuring your insurability", so to speak.

    My recommendation is to call a LOCAL agent, even the one who has your auto insurance, and have him/her do a free Financial need Analysis (FNA), or other Total Need Program, to help you determine in your own mind if it would be to your advantage to purchase life insurance, to help you reach the goals you have set in the FNA.

    If you do buy life insurance, take what the employer offers, but get some that you personally own. What an employer can provide, he can also take away.

    The FNA will also help you determine if you need Disability Income Protectection to provide an income, should you be hurt or sick and can’t work. It will also help you determine if you need an Individual Retirement Account (IRA) to help you reach your retirement goals.(All that will be there when you get there – retirement – is what you send on ahead)

    According to statistics, disability is a greater risk than death prior to the age of 65. I, personally, fall within those statistics.

    EDIT:

    I had been in the insurance business for a long time, and have many experiences of seeing how life insurance works. I’ve paid several claims during my career. One I specifically remember.

    There was a young man who was 19. He had just started a new job as an apprentice carpenter. His mother called me to come and talk to her and her son about life insurance. According to them, all he really needed was just enough to put him away if he died, and nothing more, because he didn’t have any liabilities.

    I hadn’t been in the business very long at that time, and I showed them a $10,000 Whole Life. For just a few more dollars they could add a $40,000 term rider to it. That’s what they bought.

    About a year later, the young man was on his way home from work, somehow lost control of his vehicle, and went over a steep embankment and died in the accident.

    Although the mother was really hurt over the loss of her son, she was glad she had the insurance. She paid his funeral bill, and made a donation to her church in her son’s name with the rest. She said that’s what he would have wanted.

    I’ve got all the power tools I need. Plus, I have all the life insurance my wife will need. My job, as an insurance agent is to make sure ALL my clients have enough life insurance at the time they will need it.

    Some answerers need to take some classes on what life insurance is all about. Some don’t even know the definition of a "matured" policy.

    Some should take the LUTC Courses, and also learn the Financial Need Analysis system. If they do this, they will be much better, knowledgeable, and professional insurance agents, and would be able to provide their clients with a whole lot better, professional service.

    I don’t ever want a beneficiary to tell me that I didn’t write his/her loved one enough life insurance.

    EDIT: If you know the answer to your own question, why did you ask it here?

    If you know for a fact that you’ll never have a spouse or family, then just take the free group policy anyway, and make the beneficiary your favorite charity.

  • pendleton4068 1:07 pm on March 13, 2010

    so when you die , there will be money to bury you !

  • mazz 1:07 pm on March 13, 2010

    Just like the person above said, but I say get a whole life policy for the reason of burial. A term policy with your company is just that. If you get laid off and die the next day you have no coverage. Get a policy outside your company so you will be better protected.

  • car253 1:07 pm on March 13, 2010

    You need to take life insurance now because you may not be able to get it later. Usually they have an open enrollment period and after that you might not be able to get it later when that period closes. And, you also might not be able to get life insurance later if you get health problems.

    Group term life insurance is usually pretty cheap. I would not pass this opportunity up.

  • mbrcatz 1:07 pm on March 13, 2010

    Same reason you need a chain saw.

    Life insurance is a financial tool. You get it, because you have a financial goal, that the life insurance helps you reach.

    If he’s trying to sell you under the premise that "it’s cheaper now, than later", then ask him to show you all his power tools. Power tools from Home Depot are cheaper now, than later, also. So if he REALLY believes you buy everything when you don’t need it, just because it’s cheaper, he will have put his money where his mouth is – and stocked up on power tools before the price goes up.

    Still, term life at work, is probably free. You’d take a free chain saw, wouldn’t you? So, if it’s free, take it. Just because it’s free, and hey, maybe you’d leave the money to the local SPCA when you kick off.

  • Insurance Pickle.com 1:07 pm on March 13, 2010

    Maybe you don’t, but if it’s free or costs next to nothing it might be worthwhile picking up should you later in life need it and not be able to get. Unlike….other tangible items….you can’t choose to buy insurance whenever you want. You have to be able to qualify for it. It has NOTHING to do with being cheaper now because whether you buy it now or 5 years from now it’ll cost the same (likely) because group insurance is tier rated. That means whether you buy the coverage at 22 or 30, you’re still going to pay the rate that a 30 year old pays when you’re 30. You get no credit for buying it early.

    ALSO, if you become terminally ill you can sell the policy and take the benefit (a portion thereof) early for yourself.

    Maybe instead of assuming you don’t need it why don’t you ask him what’s involved and get the facts before just dismissing it.