Optimal Finance Daily - Financial Independence and Money Advice 3224: Why Get Life Insurance If You're Financially Independent by Financial Samurai on Being Self-Insured and Financial Protection
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Jul 25, 2025 Sam, a writer at FinancialSamurai.com, challenges the notion that financial independence means you don’t need life insurance. He shares seven compelling reasons to consider maintaining a policy, including estate liquidity and tax efficiency. Sam emphasizes that life insurance can provide peace of mind for families and protect complex assets. He also discusses scenarios where having coverage outweighs the costs, making a strong case for financial protection even when you're self-insured.
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Life Insurance Still Valuable After FI
- Life insurance remains valuable even after financial independence due to factors like liquidity and estate tax protection.
- It offers faster payout than illiquid assets and can cover heirs' taxes and expenses, providing peace of mind.
When to Keep Life Insurance
- Buy life insurance if you expect to die before the term ends, improving its value.
- Use it to provide liquidity quickly to heirs, avoiding delays in asset liquidation like probate.
Get Life Insurance Early for Dependents
- Acquire life insurance early to lock in low premiums before age and health issues increase costs.
- Plan life insurance thoughtfully if you have or will have dependents for family protection.