A FIRE-Minded Approach to Life Insurance

When you’ve got the goal of early financial independence (FI), your finances dictate a different approach to life insurance than that of the average person. This is a good thing.

The only life insurance that makes financial sense for most people is term life insurance, but there are occasional uses for cash value life insurance for a small percentage of individuals, and I’ll touch on those below.

The Purpose of Insurance

Insurance exists to allow people to share in the financial impact of detrimental events. For a relatively small monthly fee, you are protected from financial ruin if something awful happens to you or the things you own.

Who Needs Life insurance?

We’ve established that life insurance is important when others are dependent upon you and the income you provide. If you have a partner and/or offspring to which you provide financial support, insure yourself.

Whole, universal, and variable life insurance policies and the myriad variations on them are different forms of cash value life insurance. 

The Limited Uses for Cash Value Life Insurance

There's a lot more to be discussed.

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