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Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money.
My cousin Arnold was murdered two years ago, and it stunned me because we were the same age. To witness his death in our late 20s shook me — it's something I never thought would happen. No matter the circumstances, there's absolutely no way to prepare for death.
Before that, I thought of life insurance as something that you acquired in your late 40s or early 50s, but I soon found out that my aunt already had life insurance on my cousin. I was taken aback. She said she'd gotten it a few months prior, although she was hesitant. However, it ended up being necessary. Parents always seem to know what's best for us, during and the afterlife.
I recall finding out years earlier that my mom had life insurance on my siblings and me. I initially felt it was a negative thing — a sort of preparation for premature death. But after my cousin's death, my mom's reasoning resonated clearly. No one wants to bury their child, but if it has to be done, you at least want to have the means to do so properly.
The policy my mom has on me, which she purchased in 2016, will last until I'm 95 and is worth $60,000. If my mother were to pass away before me, I would become the owner of the policy. The monthly cost is $35.35, which includes a guaranteed death benefit and is pretty affordable considering the cost of a typical funeral (around $8,000-$10,000 or more). My life insurance could have been a few dollars cheaper a month, but because I have a predetermined health condition (mental illness), which is considered a disability, the premium was higher.
