Life Insurance at 27 Years Old... Yes? No? Maybe?

[Hi-Psi]

I just turned 27 the other day and was recently watching a financial show and they were talking about the importance of early life insurance.

It got me thinking, should I be looking into opening a life insurance policy now while I'm young so that my family is taken care of in the event of my death? I don't have a wife or kids yet but they say the earlier the better with life insurance as you'll have a much better premium.

My mom is a big believer in life insurance as she has had health problems almost her entire life. My dad on the other hand doesn't believe in them and feels people would be better to just put their money in good investments.

What's everyone's thoughts? Do you believe in life insurance? When would you look into getting a plan?

Any input would be greatly appreciated!

Jason

[eblend]

Life insurance is usually pretty cheap, so putting that money into saving instead isn't going to add up to the type of money your loved ones would get should you die. Keep in mind that life insurance usually only covers you if you die and not for long term disability, which is usually a whole other ball game. I have life insurance for myself and my wife, and I am 28, had it since 24. I travel a lot for pleasure, so I figure I am a higher risk than those who do not, and I don't just travel to first world countries....Kyrgyzstan is in 2 month! Bought extra insurance for that one haha

[ExtraSlow]

If you have dependents, you should have life insurance.

[CHICHARITZHI]

u should have a life insurances cause casket and cemetery lot are expensive these day..

[Z_Fan]

I think you need to know why you're getting life insurance...

As in, what is your goal with the policy?

There are a lot of policies out there that you can turn in to annuities when you are older. So you can turn them in to revenue. You can also draw cash from them, etc.

Term insurance. Whole life insurance. Critical illness insurance. Shit, there's bags of options here. You gotta figure out what your goal is.

But here is one thing I can tell you for absolutely certainty. The power of whole life insurance policies (with respect to money money money money) is when they are *OLD*, not necessarily when YOU are old. If you don't start early, even if you live to be 80, the policy isn't old enough to be doing crazy stupid things with the money in it. If you start when you are 18, and contribute continually, shit, your policy will be pretty old when you're 80 and you'll be leaving bags of cash for your kids to fight over. (Or you may live to 95 and know you're raking in the cash each year from the policy)

You need to talk to an insurance agent.

That said, just over 20 years ago, my Dad talked to me and my brother about life insurance policies, how you can use them for other things beyond just money paid out when you die - I bought my policy straight away. My brother didn't. He now being in his mid 40's, it's way too fucking late to buy a policy that will accrue to crazy territory. And term insurnace is fine for now, but will very quickly become completely unaffordable as he gets older. Plus term insurance can't become a revenue stream.

Get an insurance rep to do you up some numbers. Have a look. You'll see that once policies are 60+ years old, they do insane shit! But you can't have a 60+ year old policy if you don't buy it early enough. Also, IMO, allowing dividends to pay the premium (which often you can do after 10+ years) is NOT smart. You want to continue to pay the full premium for as long as you possible can. This will aid in the speed at which the value of the policy accrues.

Once you understand the power of the policy is in the age, you'll realize that doing it early is the best way to do it.

[max_boost]

I bought a $500k whole life policy through Statefarm when I was 23. I got talked into it. My premiums are $330/month. Well the whole idea was to get a head start and if I die my dependents can maintain a certain quality of life. Don't know if it was the best policy but that's what I have.

[leftwing]

If you have no needed beneficiaries then I see no reason for a life insurance policy. Correct me if I'm wrong, but the purpose of most policies is to provide the needed support to your wife and kids if you happen to die.

I know there are tons of types of polices that do many different things, so it may be good to go talk to a couple agents and see what your options are. But personally, as long as I have no dependents I have no reason for life insurance.

[CHICHARITZHI]

life insurances with investment is the best

[CanmoreOrLess]

I have no life insurance, never have. I want my death to be a real fucking tragedy. Really, and I am taking it all with me, solid gold casket if need be.

I also feel if you buy something as airy as life insurance, you are certain to be kissed by the mirror of a rapidly moving city bus. I buy nothing airy, unless forced upon me by some regulation like car insurance for example. This sort of expense I see as a form of tax and not a karmic wish wheel being spun forward.

[lellowrx7]

Unless you have dependants there no real reason to have life insurance.
Sure you get a lower premium later but you've already paid a bunch for no reason at all.

[leftwing]

Originally posted by lellowrx7
Unless you have dependants there no real reason to have life insurance.
Sure you get a lower premium later but you've already paid a bunch for no reason at all.

Certain term life insurance contracts you get your total premium's back if you don't use it (if you don't die). Not sure what this type of contract is called.

[TomcoPDR]

Originally posted by max_boost
I bought a $500k whole life policy through Statefarm when I was 23. I got talked into it. My premiums are $330/month. Well the whole idea was to get a head start and if I die my dependents can maintain a certain quality of life. Don't know if it was the best policy but that's what I have.

Adopt me papa Sam.

[kaput]

.

[CanmoreOrLess]

Originally posted by TomcoPDR


Adopt me papa Sam.

His wife is the one you need to be deal making with, an entire genre of movies based on this plot.

[codetrap]

I set up life insurance on our daughter as soon as she was old enough. The policy will be fully paid by the time she's 10. Then, if she ever wants to get more insurance when she's older, she'll be permanently frozen at the same rates as a very healthy toddler.

We also have policies on each other worth roughly 5 years replacement salary, to give each other time off work to get back on our feet should one of us die.

[Zewind]

Originally posted by max_boost
I bought a $500k whole life policy through Statefarm when I was 23. I got talked into it. My premiums are $330/month. Well the whole idea was to get a head start and if I die my dependents can maintain a certain quality of life. Don't know if it was the best policy but that's what I have.

Holy crap!

Im guessing 330/month now isnt much. But 500k whole life is alot.


Hi-Psi - like Z_Fan said there are different policies for different situations. If youd like to about some ideas pop me a pm

[ExtraSlow]

I've looked into it, and for me, Term life is the one that makes sense.
I have investments already, I don't feel I need my "insurance" to also be an investment.

I just want to pay a month premium, and have a guaranteed benefit in case the unfortunate happens.

The good thing about term life is that the premiums are pretty small for a healthy nonsmoker, even for the large payouts that a young family requires.

[The_Rural_Juror]

Originally posted by codetrap
I set up life insurance on our daughter as soon as she was old enough. The policy will be fully paid by the time she's 10. Then, if she ever wants to get more insurance when she's older, she'll be permanently frozen at the same rates as a very healthy toddler.

We also have policies on each other worth roughly 5 years replacement salary, to give each other time off work to get back on our feet should one of us die.

Is her payout indexed to inflation?

[codetrap]

Originally posted by The_Rural_Juror
Is her payout indexed to inflation?

That's a good question. I don't know off the top of my head. I do believe that the policy is an investment vehicle as well though and will accumulate value over the years. Reminds me that I should review all our policies now that the wife is back to work and we have a little more income to play with.

[kvg]

I have a term policy and pay very little in premiums because it's way cheaper the younger you are when you get it. if you get one when your older you pay through the nose