Q: Do I need Life Insurance?

A: Yes

 

When should I buy life insurance?

Right now.

 

I’m only 23, are you serious?

Yes

 

Why?

Life insurance will never be cheaper or easier for you to buy.  Rates for life insurance increase as we age.  We also tend to be less healthy as we age, which also increases rates for life insurance.  One exception – if you quit smoking and are nicotine-free for a year (even free of a patch), your life insurance rates will go down.

 

What type of life insurance should I get?

I typically recommend Term Life Insurance – it’s the cheapest way to get a lot of coverage.  Only in a few cases do I recommend a Universal or Whole Life policy.

 

The above conversation is fictional, and don’t take it as insurance advice for your particular situation.  I hope it inspires you to meet with an insurance professional and talk about your life insurance needs.

PT Barnum needed to move people out of his American Museum.  It was too full and he couldn’t sell more tickets, so he posted signs:  “This Way to the Egress!”.  People would follow the signs and when they stepped outside, they discovered the meaning of the Egress.

Fire safety recommends that you have two paths of egress in your house.  It’s an uncommon word, so it’s typically glazed over.  Or it seems too expensive to add a back stairwell, or you don’t want to put an ugly fire escape outside your house.  It seems like an impossible, or at least too difficult, proposition.

Did you know you can buy a collapsible ladder to put inside a window?  They store in a shoe-box sized container, but you can open the window, throw out the ladder and be out of the house in seconds.  And they cost a lot less than you think – $50 to $100 for a second story window.

So go to your local hardware store, or check online and get a few for your upstairs bedrooms.  And while you’re there, get a fire extinguisher.