Mandrake9072
Senior Member
- Joined
- Aug 1, 2007
- Messages
- 459
- Reaction score
- 28
So here's the deal. I've been lurking around and stumbled into a post (I think by Globetrotter) that mentioned buying life insurance at a young age due to lower rates.
I'm soon to be a 21 and will be starting my first real job in a couple weeks. I've been spending time educating myself about budgeting properly, investing for retirement, etc... I feel that I have a solid foundation on the basics. However I don't understand too much about life insurance.
Been trying to read up as much as I can find on the internet, but with so many advertisements/spam it's a little frustrating. Right now I'm confused on:
* Term vs Permanent. As I understand it, term provides better premiums but it's set over a shorter period of time. Does this period of time, aside from the plan you choose, vary from provider or are you able to set your own? The reason I ask is, even with a 35 year plan, being young and healthy, I do plan on living past 56.
Ultimately, with someone in my position, which should I look into more: Term or Permanent?
* "Asset protection" - I've heard this come up several times, mostly at sites selling their own plan so I should probably not read too much into it. However, is there any truth in it? Should life insurance really be considered as an investment (as opposed to a contract...)??
* Convince me. Basically aside from the concerns listed above, I still would like to be convinced. Is the idea of starting contributing at a young age to take advantage of lower premiums that won't increase (provided I remain healty)?
I realize that it's best to consult someone really knowledgeable or a financial planner, but any help would be appreciated.
In before tl;dr
I'm soon to be a 21 and will be starting my first real job in a couple weeks. I've been spending time educating myself about budgeting properly, investing for retirement, etc... I feel that I have a solid foundation on the basics. However I don't understand too much about life insurance.
Been trying to read up as much as I can find on the internet, but with so many advertisements/spam it's a little frustrating. Right now I'm confused on:
* Term vs Permanent. As I understand it, term provides better premiums but it's set over a shorter period of time. Does this period of time, aside from the plan you choose, vary from provider or are you able to set your own? The reason I ask is, even with a 35 year plan, being young and healthy, I do plan on living past 56.
* "Asset protection" - I've heard this come up several times, mostly at sites selling their own plan so I should probably not read too much into it. However, is there any truth in it? Should life insurance really be considered as an investment (as opposed to a contract...)??
* Convince me. Basically aside from the concerns listed above, I still would like to be convinced. Is the idea of starting contributing at a young age to take advantage of lower premiums that won't increase (provided I remain healty)?
I realize that it's best to consult someone really knowledgeable or a financial planner, but any help would be appreciated.
In before tl;dr