Do I Really Need Life Insurance?
More than likely, the answer to this question is a resounding "yes." People without dependents don't need to worry about life insurance so much, but if something happens to one or both parents, there will still be expenses to pay and children to rear. Of course, the amount of insurance a given person needs varies according to debt, expenses and other factors. Clark Howard recommends purchasing life insurance in the amount of 10 times your annual salary, especially if you have a mortgage. Stay-at-home moms should also be covered, since child care is outrageously expensive.
Many employers offer staff the option to purchase life insurance through a particular company, and some even give a set amount to each employee. If you choose to go another way, be sure to thoroughly research financially solvent companies that boast low premiums and high ratings. Always read the fine print and understand the terms of your policy to avoid unwelcome surprises down the line. Hopefully, this is one safeguard you'll never need to take advantage of, but it's important nonetheless.
- Bodnar, Janet. "Getting Kids to Start Saving Money." Kiplinger. Feb. 22, 2012. (April 6, 2012) http://www.kiplinger.com/columns/drt/archive/getting-kids-to-start-saving-money.html
- Clark Howard. "Free Online Budgeting Tools Available." Jan. 6, 2009. (April 6, 2012) http://www.clarkhoward.com/news/clark-howard/personal-finance-credit/more-options-for-free-online-budgeting-tools/nDWx/
- Clark Howard. "Life Insurance." 2012. (April 6, 2012) http://www.clarkhoward.com/categories/insurance/life-insurance/
- Clark Howard. "Why Having a Will is Necessary and How to Get One in Place." Dec. 23, 2011. (April 6, 2012) http://www.clarkhoward.com/news/clark-howard/family-lifestyle/why-having-will-necessary-and-how-get-one-place/nFsC5/
- CNBC. "Carmen's Budget Breakdown." 2012. (April 6, 2012). http://www.cnbc.com/id/26641187/
- Dave Ramsey. "Vacation Ideas That Won't Blow the Budget." March 22, 2012. (April 6, 2012) http://www.daveramsey.com/article/vacation%2Dideas%2Dthat%2Dwont%2Dblow%2Dthe%2Dbudget/lifeandmoney%5Fother/text2/
- Howard, Clark. "Car leasing is back, but is it for you?" March 26, 2012. (April 6, 2012) http://www.clarkhoward.com/news/clarkhoward/cars/car-leasing-back-does-it-make-sense-you/nLc3B/
- Joffe-Walt, Chana. "This 14-year-old Girl Just Bought a House in Florida." March 9, 2012. (April 6, 2012) http://www.npr.org/blogs/money/2012/03/09/148218539/this-14-year-old-girl-just-bought-a-house-in-florida
- U.S. Securities and Exchange Commission. "Investment Choices." March 24, 2008. (April 6, 2012) http://www.sec.gov/investor/pubs/investop.htm
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