Death is a risk that will not hit you when it happens, but it will hit your dependents. Buy death insurance if you are a breadwinner to protect your family. Do not buy death insurance for your children unless you intend to profit from their death. It is a waste of money for people without dependents to buy death insurance because nobody is worse off financially when they are dead.
Even if you have no children, do consider buying death insurance for the sake of your parents especially if they are highly dependent on your monthly allowances. After having children of my own, I realized that raising children for protection in old age is an almost sure-lose investment. I resolve to be at least a break-even investment for my parents in the worst case. Hopefully, I can be a multi-bagger investment to them. Hence, my interest in managing my own money
With the above considerations for my beloved ones, I maximized my death insurance coverage until I am worth more dead than alive. Too much death insurance can create new risks. However, I am lucky to have married a good woman. I have no fear that she will murder me. I believe my children love me enough not to rejoice by my coffin. I have absolutely no worries with my parents. Even very selfish people become selfless when it comes to their children.
Death insurance is the cheapest among all the kinds of insurance plans. So, it was not expensive for me to maximize my death coverage. You can even use them as a cheap form of insurance for family protection.
My subsequent paragraphs may be offensive to some. You are free to ignore if you disagree.
Death insurance can be used as a form of cheap disability/health plan to protect your family. If you are disabled at a young age or get diagnosed with a terminal illness that will cost a bomb to treat with low chances of survival, you may consider suicide but make sure your insurance covers suicide first! This way, not only do you avoid becoming a burden to your family, you can also provide a lump sum to support for their future living expenses. They sorely need it after losing a breadwinner. If it is honorable to die in war for your country (a group of strangers who can be unappreciative), then it is even more honorable to die for your family (people whom you love and love you back).
Thank you very much for sharing your experiences. I just started working. You have given me a good headstart!!
ReplyDeleteThis is the first time I have come across such a method.
ReplyDeleteMost probably I have been spared from such a situation.
It reminds me of the Samurai bushido code to die honourably.
Interesting read !
Hi Anonymous,
ReplyDeleteI thought of this method when I just started out work and had only enough money to provide adequate insurance protection for myself only. This is a cheapskate method for breadwinners who cannot afford to pay high premiums to protect their family.