Quick Life Insurance Lesson For Singles

Hello Sophisticated Spenders!

I love having conversations about money.

And yesterday I was lucky enough to have a conversation with a group of awesome people.

I attended Tiffany The Budgetnista’s Live Richer Tour.  Click here to learn about her free Live Richer Challenge!

Dominique Broadway was also there.  She’s a friend of mine and a Financial Planner and very smart!

Here is the quote, “Single person: amount of life insurance coverage should be based on the current debt you have, or debt u want covered in occurrence of your death!”

I had to read this over a couple of times because I was confused.  I was thinking, who cares about paying debt if you’re dead, right? WRONG!

Upon further reading, here is my spin on that quote:  Make sure you have enough life insurance to cover the debt on all of the Assets you want to pass on to loved ones.

So my Sophisticated Spenders, if you have a house that is not paid off or a car that is not paid off and would like to pass those assets on to your loved ones, make sure you have enough coverage to pay those items off.  I wouldn’t worry about any student loan debt or other unsecured revolving debt because there’s technically nothing left to leave.

I realized that I totally  need to step up my life insurance game.  I am totally undercovered for my homes.  So that is now on my to do list for the end of September (maybe October).(As you can see, I’ve been meaning to do this since September OF 2012!  I will make this life insurance thing happen this week!)

What do you guys think??  Am I wrong or right here?  How much life insurance coverage do you  have??