Life insurance?
I am looking for a life insurance policy. I am 22 years old, have never used tobacco, in good health, etc. I feel like this would be an ideal time to get a good premium. The problem is that I don?t know that much about it. I know there are different kinds. I don?t think I would want term life insurace, right, because I am so young? I want a policy that will be good fir the rest of my life, however long that may be. Any advice? Thanks in advance!
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Get term anyways. It?s cheaper. As long as you plan ahead now, you wont need life insurance for the rest of your life. Permanent policies are some of the biggest wastes of money out there.
Put the money you would have spent on a cash value policy and save it. Put $100/mo away now in funds that will average 12% over the next 40+ years to your retirement. In 40 years you would have amassed around 1.1mil.
Find a good 35 year term policy that you can add your spouse onto when you decide to get married AND your kids without having to get a new policy. That way you can keep your rates lower.
The only purpose of insurance is to cover a loss you can not afford to lose. Hence why you get car insurance for when a wreck happens, medical insurance for when you get sick. Life insurance is no different. You get it incase you die prematurely to protect those that have survived you. That is all.
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Since you have 3 kids, definitely go with a term policy. It will save you money over any other kind of cash value policy. Get as much as you need plus a little more. If you can get the coverage up to a breakpoint and have it be close to being what you would have paid with out it, go for it. Also get the longer term you can. A child rider, depending on the company, will cover all 3 children for the same price.
Also look into getting a will, power of attorney, and living will setup just in case something happens. Some pre paid legal plans have this as a benefit for signing up.
It is a good idea to get some life insurance because you are young and healthy. Here is an excerpt from one of the oldest most rock-solid life insurance carriers in the country, New York Life.
?Perhaps most important of all, life insurance purchased today can protect your future insurability. Though single today, you may eventually have a family. Cash value life insurance, once issued, is in-force for life, assuming all required premiums are paid. This is the case in spite of any changes in your health that may develop in the future. It is even possible to lock in the premium rate for life. Premiums at issue are lower for younger men and women, increasing each year. However, you can ?freeze? those rates at the age of issue, so it is possible to pay the same low premium rate when you are 70 that you did when you took out the policy at age 25.? (click here for the entire piece of advice: http://www.newyorklife.com/cda/0,3254,11750,00.html
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by BrianWMember since:January 27, 2008Total points:435 (Level 2)Add Contact
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You are right.. now is a great time to lock in a premium on some level of permanent coverage. Get a UL policy of about $50,000 to $100,000. For someone your age, the cost would probably be around $25 to $30 a month. This will be locked in for as long as you want the policy and you will be building some cash value as well. You won?t send the children to college on this, this won?t be your retirement fund, nor will there be a bunch available next year.. but it will accumulate, you will earn interest starting from year one and it will be available for you down the road if you want to use it. Don?t get a variable UL, and also don?t consider ?overfunding? ( or paying extra premiums ) into it. But do add on a rider to cover your children. Most will offer a benefit of $10,000.. with the option for the child to convert and increase this on their own, once they reach a certain age.. usually between 23 to 25. Then, you would also want to add to this, by purchasing a term policy. With children, you want to make sure that should something happen to you, they will be taken care of. You don?t say their ages, but consider at least a 20 year term for somewhere between $300 to $500,000. This should at least give you more than enough coverage until the youngest is out on their own. This way, you can drop your term as it gets alot more expensive.. but still have some level of coverage with your UL, at a rate you?ve locked in from the beginning. And if you feel you don?t even need the UL at that time, you can cancel it.. and have a chunk of cash paid back to you.
If applicable, check where you work to see if they offer group term insurance. It?s generally cheaper, but you want to make sure it?s portable.. meaning if you leave your job, you can still continue it. More and more group companies are now offering portability.. along with conversion.
It?s also important to consider who will be your beneficiary. You don?t say if you?re married, but just make sure the person you name.. will use this money to raise your children and set aside some dollars for college or to help get them started.
I?d talk to a broker or independent agent in your town. But don?t waste your time on someone who has a one size fits all approach. There are two different types of insurance policies for a reason. Use the advantages of both to maximize the benefits for the money you?re paying, and to keep your options open as you get older.
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21+ years insurance/group benefits.
4 years ago
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Source: http://www.decadesilove.com/2012/07/24/life-insurance-question-12/
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