Taking care of final expenses

Dear Dave,

I'm 30-years-old, single, I rent an apartment and I have no dependents. Do I need life insurance?

-Shawna

Dear Shawna,

You may have very little need for life insurance in your situation. If you have enough money saved up to pay for your burial, and you don't have any debt, there's really no reason to carry a policy. No one is going to be harmed financially by your death, and no one would be deprived of the income that would be lost if something unexpected happened to you.

But if you don't have money saved, and you've got a bunch of debt, you might want to consider a small, term life insurance policy. At your age, if you're fairly healthy, you can get $100,000 worth of coverage for almost nothing.

Remember, you shouldn't buy life insurance to leave an inheritance. You should buy life insurance is to make sure there's enough money to take care of your family and final expenses. You wouldn't want your parents or someone else having to foot the bill once you're gone!

-Dave

Dave Ramsey is America's trusted voice on money and business. He's authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. His newest book, written with his daughter Rachel Cruze, is titled Smart Money Smart Kids and is out now. The Dave Ramsey Show is heard by more than 6 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.