This is simple: if people depend on you for your income, you need 10x your yearly income in either a savings account or in life insurance. Period.

• If you’re single with no dependents, you don’t need life insurance
• If you’re married with no kids and your spouse’s income is enough for him/her to live on as a widow/widower, you don’t need life insurance
• If your kids are now independent adults and you have enough in savings or retirement for your spouse to live comfortably if you die, you don’t need life insurance.
• If you have ten times your annual income in savings or in a retirement plan that won’t die with you, you don’t need life insurance.

Now, for the 95% of us who are left: YOU NEED LIFE INSURANCE!

There’s nothing better than the feeling of saying “I’m worth more dead than alive!” I know if I die that Gretchen and the kids will have a rough time, but I also know that she won’t have to worry about the stress of making house payments, paying for the kids’ college, or paying for monthly expenses. I have 20 year level term life insurance. In other words, my policy is 20 years long, the premium will never go up, and it only pays out if I die before the end of the policy. And it’s cheap. I think most people my age (late 20s/early 30s) can expect to pay $30-$40 per month for $500,000 of coverage.

Don’t touch whole life or other “investment” life insurance products. They’re a rip-off. We’re much better off getting cheap level term life insurance and than making good investments in mutual funds, etc. Insurance isn’t an investment, it’s an expense (a necessary and good expense, but still just an expense). Pay just for the insurance and then make wise investments separately.

ACTION ITEM #6: Don’t wait! Get life insurance today! Save all your research, your excuses, your procrastination for later - get life insurance today! Get 20 or 30 year (depending on your age and how long before your kids will be grown or you’ll have 10x your income saved so you can be self-insured) level term insurance. Again, 20 year or 30 year level term insurance. It’s cheap - mine is $30 per month. Go to Zander Insurance (highly recommended by Dave Ramsey) and request a quote online, or call them at 800.356.4282 for more information. Do it today!