Why we bought life insurance, and you should too

by Lesley on July 23, 2012 · 2 comments

in the why we series

About 18 months ago, we bought life insurance. It was one of the best financial decisions we’ve made, and the timing of the decision couldn’t have been better. I thought I’d share a little bit about our experience buying life insurance and encourage you to think about purchasing it too if you haven’t already.

A few weeks ago I wrote about why we decided to buy a house in the city. I got some nice feedback that the post was a fun and encouraging read for other families who have also made a similar choice to live in a city. It got me thinking about how I always loving reading about other people’s lives, parenting theories, shopping habits, and big decisions like buying a car or a home. Even when I don’t agree with others choices, I always learn something. Our current trial with cash envelopes came from reading about so many other people who have tried the system and loved it. All that to say, I hope that no one felt judged or discouraged by our city living post. To each his own, right?

Now, back to the topic of life insurance.

In November 2010, within the course of a week, we found out I was pregnant and in escrow on a house. All of a sudden a lot of responsibilities were hitting us left and right. We’d already been thinking that life insurance was probably a smart decision, but the reality of a mortgage and children made the decision simple. I knew I’d likely be stepping away from my career for awhile, and I didn’t like the idea of having nothing to fall back on should Jonathan ever pass away. Also, if I were to ever pass away, he’d need help taking care of young children and balancing a career. It only made sense to research life insurance.

We’d been meeting with a financial planner who helped us discuss different life insurance options, and answer a lot of the questions about whether we should buy whole life or term insurance. (We bought term insurance.) We also spent a lot of time talking about and estimating our future needs to find a term that matched.

Something not on our radar at the time was how important it is to purchase life insurance when you’re healthy. In late 2012 we were both incredibly healthy, and took this fact for granted. We had our insurance physicals in December 2010 and qualified for the lowest rates possible. Had we waited six months, our situation would have looked very, very different.

You never know when your health is going to change. If you’re young and healthy, NOW is the time to buy life insurance. We are SO glad we did when we did.

Stuff to read if you’re thinking about buying life insurance:

CNN Money: Choosing the right life insurance

The Truth About Life Insurance

5 Steps to Setting Up a Term Life Insurance Policy

Do you have life insurance? If not, what are your hesitations?

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We also just got life insurance, although we're starting off with just Brett. We plan to add me to the plan in the next few years. Babies change everything!


I'm submitting my term life insurance paperwork today! Eric finalized his last month so we'll be set, then. Next up: writing a will!