For most young, single women life insurance is not on the radar.
Health insurance of course, and maybe renter’s insurance. But sometimes a disaster can change perspectives.
Take the example of 27-year old Suzanne. A fire in her apartment building led to flooding in her apartment. The walls were soaked, there was water under the floorboards, and the electricity was shut off to allow for rewiring. Her apartment was uninhabitable.
The apartment’s leasing office said that after inspection, the renter’s insurance should cover damage and temporary accommodations. Unfortunately, Suzanne couldn’t find the policy. After repeated conversations with the insurance company, she found that her agent had never renewed the policy. The stress was enormous – not only did she have to find somewhere to stay while repairs were being made, Suzanne was also looking for a job and freelancing with a less-than-dependable income stream.
After haranguing the insurance agent, the agency finally took responsibility and processed the insurance. Suzanne found a friend to stay with and slowly but surely got life under control. However, the experience solidified her desire to never again live without a substantial safety net. First, she got a new and better renter’s insurance policy.
This got her started thinking about life insurance. She realized that since she was covering all the disaster scenarios, why should life insurance be any different? If the worst happened, family members could be saddled with debts, funeral expenses and other responsibilities. Why would she ever allow that to happen?
By that logic, Suzanne opted for a 20-year term life policy with a benefit of $800,000. Since she was young and healthy, it cost only $308 per year. With that, she had the peace of mind of knowing that if she started a flood, no one else would pay for the water damage.
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I’m a healthy, single 27-year-old woman, but a flood convinced me life insurance is the smartest thing I can spend my money on | Business Insider