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Is whole life insurance a good option for my family of three if I have multiple retirement accounts and insurance policies already in place?

I am a single mother of two young children and work as a nurse. I have a 401(k) account, a 403(b) account, universal life insurance through the company I work at, and term life insurance outside of my company. I make about $90,000 a year. Would adding whole life insurance be a good idea for my family and I?

401(k), Insurance, Life Insurance
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April 2018

My thoughts:

1. With the investment and financial planning industry's relentess and almost propagandic effort to push every dollar into qualified retirement plans I find that most people are woefully underinsured. This goes for insurance that can have a huge impact on your family's financial future including life, disability, critical illness, and liability insurance. Insuring against these events protects your family's dignity in the event of death, cancer, heart disease or lawsuits. However, it looks like you have taken responsibility and have several life insurance programs in force. What are those amounts? Whole life insurance can be great tool for your family especially to cover your final expenses or for an inheritance. By purchasing it younger your coverage will be more affordable over your lifetime especially when your term life insurance expires or becomes annually renewable term with premium increases. It only costs more to insure you as you age.

2. As a single parent you should STRONGLY consider looking at some other insurances such as disability and critical illness. Since you are a one income household your family's financial future is in a much riskier position than a household with dual incomes. Really consider utilizing your dollars to both insure and save for your retirement. 

March 2018
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March 2018