Should We Buy Life Insurance While We are Still in Debt?

YES! Dave Ramsey does not include term life insurance in the Baby Steps because it is an immediate need. Your family is actually most at risk of falling into financial hardship when you are in debt, which means this is the most important time in your life to have this protection. Term life insurance is usually quite affordable, so there is no reason to delay doing this for your family. Dave believes that you need term life insurance – regardless of where you are in your financial journey – if your death would put your family through financial hardship. As you get older, your debt should get smaller and your savings should get larger. That means the need for life insurance steadily decreases as you age, until you no longer need it at all. That’s why Dave suggests a 15 or 20-year plan, which is the amount of time most people will need to reach this point of financial stability. Our Zander Guides are familiar with the Baby Steps and are here to help you reach your goals. Give us a call at 1-800-356-4282 to discuss options that work with your budget or compare quotes online for yourself.

Read more about how a term life policy can benefit you – especially when you’re in debt!