Buying life insurance at a young age - educate me

[Piobaire]

Term to age 90. That's what you buy. Buy at least 250k now and then buy riders so you can increase coverage in the future. That way, if you have a greater need, i.e. kids, you are assured you can get more and not be barred due to a medical condition.

Also, never, ever, ever use life insurance as an investment vehicle unless you are making absolutely stupid bank and have run out of other ways to save money.

 

[kankle j]

No one understands that you don't have to die to reap the benefits of having a permanent life insurance policy. People don't just die, they get sick, have huge hospital bills, and illnesses that can last years. How about looking into policies that you don't have to die to use : terminal/chronic illness riders so you can use the value of the death benefit to pay for hospital bills and medication/surgeries. Buying term until 90 is stupid, your left with nothing at the end, and good luck getting anyone to underwrite a 91 year old because no insurance company will do that, most will not insure anyone over 80. It's not just term or whole life anymore, there's thousands of options to use to build a policy to meet your needs- you just need to sit down with an advisor, and for the love of god, don't base a decision on what you hear on a men's style forum from a completely unqualified individual.

 

[Reevolving]

Buying Life Insurance At A Young Age - Educate Me

In a word, "don't"

 

[DrHouse]

Buying Life Insurance At A Young Age - Educate Me
In a word, "don't"

I don't think at a young age that he meant 16

 

[Reevolving]

A 21 year old has no need for life insurance. Check the actuarial tables. He's better off buying lottery tickets.

 

[Piobaire]



A 21 year old has no need for life insurance. Check the actuarial tables. He's better off buying lottery tickets.

If that 21 year old stayed 21 forever, or never got married or had kids...or had a big trust fund so did not have any concerns of leaving wife/kids behind without an estate...I would totally agree with you. However, most 21 year old turn into 40 year olds with spouses and kids and a house half paid for and college accounts to fund.

 

[DexterP]

I think many of us are aware that we need to have insurance to secure our future, right?
It's true that life insurance coverage is incredibly important, should something go wrong. You could already qualify for life insurance, for free, in some situations. Go here: Four places you might get free life insurance for further information.

 

[BigCheese]

Get as much term as you can and as much permanent as you can afford right now. Use the permanent as a savings vehicle. There is nothing like a permanent insurance policy with a company like Northwestern Mutual that gives you a great return with no taxes on the cash you build in the policy. Only "investment" that is not taxed on your gains period.