1. 61667 POINTS
    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona


    Video Transcript:

    Today's question is, is life insurance really worth it? Well, that's a good question. If I have financial liabilities, like indebtedness, a mortgage, if I have future obligations, like a college education for my children or my retirement, or I want to replace my income for my family if something happens to me, I think that's worth it.

    How do I pay for that? You may want to look at term life insurance if you have a temporary indebtedness or future obligations and it's temporary, that could be your play because that's the cheapest way to play. And that makes it worthwhile.

    If you have ongoing financial indebtedness or future obligations, or you need to replace income, or you have terrible intent, you probably need to buy a permanent form of life insurance. Depending upon what you're trying to cover, I think that life insurance is absolutely needed and necessary and yes, I think it's worth it.
    Answered on November 11, 2013
  2. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    If you make one life insurance payment, then die suddenly, your beneficiary will receive the entire face amount of your policy. If your policy was graded (as can happen if you purchase a policy while very ill) and you died suddenly, your beneficiary will still receive all you paid in, plus some extra. If you survive the graded period, or die accidentally, they will again, receive the full death benefit.

    It is impossible for most people to save up hundreds of thousands of dollars at the time they need it most - while income is relatively low, there are small children to raise, and you are getting on your feet. Life insurance is an incredible value and definitely worth it to someone in those shoes.
    Answered on November 18, 2013
  3. 4249 POINTS
    Gary Lane
    President, Lane Independent Agency, Southern California
    You insure your car and your home, right? Well you may not collect on those policies, but your family surely will on your Life Insurance Policy! If money is tight, and budget shuffling doesn't help, at least put something in place with Term Insurance, until you can afford Whole Life. Any amount is better than no amount. New York Life offers a large variety of policies.
    Answered on November 19, 2013
  4. 0 POINTS
    John "Jake" Nugent II
    Solution Provider, Madison Strategic Partners Group, Greater New York City Located, Serving Clients Nationwide
    To really get an answer, you need to ask yourself 'What happens to my family and beneficiaries if I die tomorrow?'. 

    If there are family members and other beneficiaries that depend on you financially, the answer should be clear;  Any death benefit that they receive will not replace the void from your passing but it will certainly help reduce the burden of any financial obligations that you had been helping to cover, i.e. mortgage, car payments, debt, student loans, living expenses and the list can go on. 

    Further, life insurance can help you leave a legacy or gift for your loved ones that can help them for years to come.  And if there are beneficiaries that you would desire to leave money for, you can always name a non-profit or charity as a beneficiary, i.e. Alma matter, favorite charitable organization, museum, zoo, etc.

    Insurance proceeds, which are tax-free, can be used to fund education for children and grandchildren, family trip to help heal together after the loss of your life, remove financial uncertainty about a spouse or child's retirement or an endless list of other possibilities.  It is an invaluable gift over and above the sum of money that they could receive.

    The bottom line is, whatever you can comfortably afford in premiums, will create a larger sum of money that will help change your beneficiaries and loved ones' lives for the better.
    Answered on November 20, 2013
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