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Dave Ramsey says: Life insurance is meant to pay off final expenses

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Dear Dave,

I’m 35, single, and I have no dependents. Do I need a life insurance policy?

— Larry

Dear Larry,

In your situation, if you have enough cash saved up to pay your final expenses — and you don’t have any debt — there’s no reason for you to carry a life insurance policy. No one will be harmed financially by your death, and no one would be deprived of the income that would be lost if something unexpected happened to you.

Even if you have a mortgage on a home, the house will normally sell for enough to pay off the mortgage.

However, if you have debt, or if you don’t have some money stashed away in savings, you might want to consider an inexpensive term life insurance policy.

At your age, if you’re healthy, you can get $100,000 worth of coverage for just $10 to $15 a month.

Remember, you don’t buy insurance to leave an inheritance. You buy life insurance is to make sure there’s enough money to take care of your family and final expenses.

You wouldn’t want your parents or someone else having to foot the bill!

— Dave

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