Ask HN: Life insurance?

https://news.ycombinator.com/item?id=913192

by zavulon • 17 years ago

1 3 17 years ago

news.ycombinator.com

I saw a few threads on here about health insurance for entrepreneurs, but didn't see any on life insurance. Any advice on that? Is it necessity for a late-20s generally healthy single male? I'm trying to calculate my total costs, strongly considering leaving my job, and any advice would be much appreciated!

mbrubeck• 17 years ago

If you have no dependents then you don't necessarily have a need for life insurance. I never bought life insurance until I was ready to have a child, and I think that was the correct decision for me.

If you have any near-term plans to get married or have children, then buying term life insurance now might make sense. It's cheaper to buy when you're younger, but on the other hand you don't want to pay for several years of insurance that you don't end up needing.

mechanical_fish• 17 years ago

If you have no dependents then you don't necessarily have a need for life insurance.

I agree, but this statement seems unnecessarily cautious. Can somebody give me an example of someone without dependents who should pay for life insurance?

(Some companies take out big life insurance policies on their employees. This is a tax loophole, and I believe it doesn't apply to you or me.)

(And, no, "I plan to fake my own death and collect insurance money under an assumed name" does not count as a good reason. ;)

As with all forms of insurance, life insurance is only worthwhile if the consequences of a loss are so big that you can't afford to self-insure. Generally, the estate of a single person with no dependents has little need for an immediate source of cash after their death. If you want to leave money to someone it's better to simply invest the cash, then write a will to bequeath your investments to the people of your choice, rather than blow the money on a life insurance premium which -- by deliberate design, to keep the insurance company in business -- is statistically likely to be an additional cost rather than a benefit.

Mz• 17 years ago

Funeral expenses can be quite high. I can't think of anything else, but if you want to cover all your bases, that's something to consider.

Ask HN: Life insurance?

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