Do you have people in your life who would be financially affected if you died? Our pals at LearnVest have an essay by a woman whose father died in a plane accident when she was three, and what his life insurance policy was able to provide her family after they filed a claim:
In our case, the life insurance paid off the mortgage, and provided enough for my mother to continue to stay at home with us until I was in high school. It funded private school for my sister and me through 8th grade. Although we had only paid nine years of premiums, we received a giant influx of money that would sustain us until my mom reinvented herself as an interior designer when I was in high school and reentered the workforce on her own terms.
I’m currently paying about $40 a month for a 20-year term policy worth a little over $1 million (my beneficiaries are my parents). Here’s how to get yourself insured if it’s something you need to do.