One Question You Probably haven’t Asked Yourself

Hi Reader,

Welcome to The Money Series, and if you are new here, thank you for signing up. Personal finance can feel confusing and overwhelming, but this space is about learning, growing, and figuring it out together, one money decision at a time.

This week, I started studying for a program, and one part of the curriculum covered life insurance. It’s not a new topic for me, but it came as a timely reminder. That, combined with a few recent events, is what led to today’s note.

At its core, life insurance is about one simple idea: ensuring the right money is in the right hands at the right time.

Unlike most insurance policies, where you’re protecting against something that might happen, life insurance is different. The event is certain. It’s not an if; it’s a when. That’s why it’s often referred to as life assurance.

When someone passes, the emotional toll is heavy. But for many families, there’s also a financial shock, especially if that person contributed to the household income. Life insurance is one way to reduce that burden.

I know this may feel like an odd topic, especially if you’re young. But here’s the question I want you to sit with:

If something happened to you, what would be the financial impact on the people you care about?

While they’re grieving, would they still be able to afford the life your income helped provide? (And for the record, I genuinely pray you live long and fulfill your days.)

Why talk about this so early?

Because timing matters.

Life insurance is significantly cheaper when you’re young and healthy. It’s easier to get approved, and you can lock in lower premiums for the long term.

But beyond age, life insurance becomes less optional and more necessary if:

• You have dependents. A partner, children, or even parents relying on your income.

• You have significant or shared debt. Think mortgages or joint loans. If your liabilities outlive you, insurance should exist too.

• You’re getting married or starting a family. A good rule is to get covered before or right after major life transitions, and increase coverage as responsibilities grow.

• You’re a single-income household. Or you carry most of the financial weight.

• You own a business. Life insurance can protect partners and co-owners, cover business loans, and help the business survive your absence.

The Two Broad Types

You’ll hear many variations, but most life insurance falls into two categories:

• Term Insurance. Covers you for a specific period (e.g., 20–30 years). If nothing happens during that time, the policy ends. It’s straightforward and typically the most affordable. You can consider this for the length of your working years.

• Whole (or Permanent) Life Insurance. Covers you for life, as long as the policy is maintained. It also includes a savings component.

A quick note on “cash value” policies

Permanent policies build something called cash value over time.

Part of your premium goes into a pool that grows over the years. This can eventually be accessed during your lifetime, for things like a wedding, home purchase, or education. In that sense, it can act as a kind of backup financial resource.

As life changes, so should your Insurance cover

Your insurance needs aren’t static. They evolve with your life:

• They may increase when you get married or have children

• They may decrease as your kids become independent or your wealth grows

That’s why it’s worth reviewing your coverage periodically, especially after major life changes.

If there’s one thing I want you to take away, it’s this:

Life insurance isn’t really about you. It’s about the people your life financially touches. And planning for that, early and intentionally, is one of the most responsible financial decisions you can make.

Reflect on This:

• What financial decisions do you need to make now that future-You will thank you for?

Till next week, I am rooting for you, money-ly!

Dee

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Disclaimer: This does not constitute financial advice. Please conduct your research or consult your financial advisor for important financial advice.