Ask Terry Questions life insurance policy question

life insurance policy question

By Terry Savage on September 07, 2019 | Insurance & Annuities

I am a 58 year old widow. I purchased a life insurance policy that is $ 7500.00 and costs me $ 39.00 a month. I have a 25 year old step son who is independent. I have a profit sharing plan and savings. Do I need the life insurance? Thank you Terry.

Terry Says

This is a pretty expensive plan, and is probably making the insurance company rich.   If you really needed life insurance to leave to your stepson, I checked on and you could buy $100,000 of life insurance for about$62/month — assuming you are in good health and a non-smoker!

After you’re gone, the only real need for money is for burial expenses.  I think you probably have that much in your retirement assets.  Or you can pre-pay your burial expenses.  So I can’t see why you need ANY life insurance. But if you do want to leave money to your step-son, or a charity, then make sure you get a better policy!

Otherwise, just invite him out to dinner once a month with the $40 you’re saving on life insurance premiums!



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