Why $300,000 of life insurance doesn't feel like enough - Business Insider

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The takeaway? Buy as much life insurance as you can when you're young.

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, but our reporting and recommendations are always independent and objective.Back then, we wanted enough money to cover the cost of our mortgage and death expenses if my husband should die unexpectedly.

"We want enough to cover the mortgage and death expenses," we said to the agent who sold us our life insurance policy over a decade ago. At the time, that seemed like a reasonable, responsible, and secure plan. A plan that would secure my future if something tragic and unexpected happened to my husband.

We both signed on the dotted line and purchased a policy worth $300,000. Almost a decade later, we realize that what we planned for wasn't nearly enough to meet my needs if my husband were to die. Indeed, our lives have changed fairly dramatically since we bought the policy — my husband has become my caretaker due to a chronic illness, and he earns the only regular paycheck.

I know it seems counterintuitive to say that young people should buy larger life insurance policies, but if it is possible to lock in a low rate for the life of the policy, it is a good deal. Of course, it is harder to think about something tragic or unpredictable happening when you are young. Still, you don't want the unexpected to happen and to have your loved ones choosing between groceries and electricity bills.

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