When Should I Consider Life Insurance?

Dave Ramsey considers term life insurance to be an immediate need, which is why you won’t find it in the Baby Steps – it comes first!

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Dave’s advice is simple: no matter where you are in your financial journey, if your death would cause financial hardship for your family then you need life insurance. The most crucial time to have term life insurance is when your family is in debt and has a lack of savings, as they would be less likely to continue their lifestyle if your income was gone. It is important to remember that as long as you are growing your savings and paying off your debts, you will need less insurance coverage as you get older.