Do I need life insurance?

[irishbear99]

I am a federal employee and am thinking of dropping my life insurance coverage under the Federal Employee Group Life Insurance (FEGLI). I'm going through a divorce, and we have no children and no debt. There is no one depending on my salary but me now, so I can't see the point in continuing coverage. Plus, it would be $70/month I won't have to spend. The only thing making me hesitate is that it would be extremely hard for me to get a good deal for term life insurance if I needed/wanted it in the future (I have a pretty serious pre-existing condition). I don't know what circumstances would occur that I would feel the need for life insurance again (I'm almost 40 and will likely not have biological children). Thoughts?

[yachi]

Adopted children would qualify for survivor benefits based on your earnings history, so that's like insurance.  How expensive is a bad deal for term life insurance compared to the $840 per year you're spending now?  Do you have a positive net worth such that your estate could pay for funeral expenses?  I'm half way to FIRE with a family of 5, and I'm not carrying life insurance.  Social security benefits and the 'stache is enough to pay all bills until my kids graduate college, and my spouse would like to have a job before that.

[irishbear99]

Yes, my estate would be more than able to pay funeral expenses. I'm not sure what term life insurance would run on the private market for me. I should figure that out.

[Catbert]

Sounds like you don't need life insurance in your present situation.  Check to see if marriage would make you eligible to opt for FEGLI without passing a physical.  (I can't remember, 9 years of retirement causes amnesia.) 

[Dmy0013]

how old are you?  when is your term up?

I know its the last thing you want to think about right now, but perhaps in the future you will have someone or something important in your life or even a cause you find close to your heart to give the money to.

Like you said if you have a pre existing condition this is most likely a forever decision as far as life insurance is concerned.

[Fishindude]

Life insurance is a waste of money if you don't have people dependent upon your income, unable to support themselves in the event of your death.
In your case, I'd drop the insurance and do something else with the money.

[NeonPegasus]

I'm going through a divorce, and we have no children and no debt. There is no one depending on my salary but me now, so I can't see the point in continuing coverage.

You are correct. Drop it. Take that $70/mo and invest it.

Regarding future insurance, am I wrong in thinking that most people can get a minimum amount (like $10k or so) through their work without health being a consideration? That would help with the immediate funeral costs.

The only downside I see in the future is if you marry a woman with children and you want to provide for them as well, just in case. But that's a lot of assumptions and I don't see it as a compelling reason to continue paying for insurance.