I remember the first time I heard the phrase “life insurance.” Honestly? I thought it was some boring banker thing that only old people cared about. Turns out I was wrong. Way wrong.
Okay, let me explain this how I get it in my head. Life insurance is basically an agreement between you and some company that says: “If you die, we’ll pay your family money.” Sounds kinda blunt, right? But that’s literally it. You pay them little chunks (called premiums) every month or year, and if something happens to you, they give your people a big check. They call that a death benefit—which sounds creepy but important.
How it basically works
It’s not rocket science, tho the insurance guys try to make it sound like it.
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You pick a policy.
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You send them money (regularly, don’t skip).
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If you pass away, boom—the payout goes to whoever you picked.
Some plans even got savings or investing attached, which I never knew at first. Like, you’re kinda protected and your money grows on the side.
Different “flavors” of life insurance
This part confused me most at the start. There isn’t just one kind of insurance, there’s like… flavors. Each with its own weird rules.
Term Life Insurance:
Super simple. Cover lasts maybe 10–30 years, then poof. If you survive the term, no money back. Cheapest option tho. Works great if you just want protection for your kids growing up.
Whole Life Insurance:
This one never ends (unless you quit paying). More expensive, yeah, but it builds a “cash value.” Like a little savings piggybank that grows.
Universal Life:
Flexible—sometimes you can change how much you pay. Cash value part earns interest (depends on market).
Variable Life:
Kinda risky. Your cash part goes into investments, like stocks. Can make more, but can also tank. Not for faint hearts.
Why would I even need it?
At first, I legit thought I didn’t. “I’m young, I don’t need that.” But then it hit me… if I’m not here tomorrow, how’s my family paying bills? Or my student loans? Or my kid’s school? It’s not about me, it’s about them.
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Pays debts off (house, car, whatever).
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Keeps the lights on at home.
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Covers school fees.
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Gives peace of mind (that phrase gets used too much but it’s true).
Honestly, just knowing my wife wouldn’t drown in bills if I vanished makes the monthly premium worth it.
How much is enough?
Some say “10x your salary.” Others say calculate debt + future costs. Honestly, I think it depends on your life. Like, if you got three kids, yeah you’ll need way more than someone single. I used a calculator online, it kinda helped me see the gap.
Myths I heard (and thought were real)
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I’m too young. Wrong. The younger = cheaper.
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I’ll just save money myself. Yeah right, try saving $500k before 40.
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Insurance costs too much. Bro, some plans cost less than your Netflix subscription.
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My spouse doesn’t work so no need. Think again—if she’s home with the kids, who pays for childcare if she’s gone?
Picking a plan
This was stressful, ngl. But here’s how I did it:
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First, looked at my bills + family costs.
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Second, decided how much I could realistically pay every month without choking.
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Third, compared multiple companies (don’t just trust the first).
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Also checked if they’re good at actually paying claims (some are shady).
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Lastly, asked a financial advisor friend to double check my choice.
Final note from me
Life insurance isn’t glamorous. No one brags at dinner parties like “Hey guys, I just bought a new policy!” But when I think about my family’s future, it’s one of the most grown-up things I’ve ever done. You don’t buy it because you expect to die tomorrow. You buy it because you love the people who’d still be here if you did.
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