I'm 24 and thinking about starting a life insurance policy. I'm just looking for future security down the road(15, 20, 30 years, etc.) for when I have a family if something ever were to happen to me. I know that starting early puts you in the best health tiers and gives it the most potential for the plan to grow. Who has a life insurance policy? What are your thoughts on it? If you have one, who is it with? Thanks.

 

P- if you don't have a wife or kids, what do you need life insurance for?
Wait till someone relies on you for food and shelter, then buy term insurance. It's getting cheaper every year. Don't buy whole life ever, unless you think some day you will be uninsurable (how would you know).
The only reason you would need it now is if your parents couldn't afford to give you a burial. In that case, you can probably get a 10,000 policy free with a credit card.

 

^Good idea. For awhile, I was worth more dead then alive to the Mrs.

 

first off, if you are single with NO dependents, you DONT need life insurance. if you want to be secure down the road financially, start contributing to a 401k or ROTH IRA. but if you feel compelled to buy life insurance for some reason, here is the best source. they wont sell you something that you dont need. my friends who are married with kids use them and get super deals.

http://www.ameritasdirect.com/

 

I max out my 401k and my Roth every year. I was just looking for alternatives for the future.

 

[QUOTE=Pfieffdog,Jan 17 2006, 01:14 PM] I max out my 401k and my Roth every year.

 

buy term and invest the difference. Also it's cheaper if you start buying life insurance early. My insurance premium for 250,000 term life to 30 years is less than 30 bucks.

 

It's not true that term is cheaper if you start early.

Say someone buys a policy in 1980 at age 20. Fast forward to 1990 - they are 30. Compare the premiums on the policy taken out in 1980 for a now 30 year old compared to a new policy for a 30 year old take out in 1990 and you will find that the premiums are much lower for the new policy. This is due to people living longer. Longevity tables are updated with new data and this drives competitive premium prices down.

The only benefit to having a policy now instead of waiting to get one is that the chance of having a health issue affect the ability to get a cost-effective policy.

 

if you're looking for security down the road and life insurance, since you're young and i would hope healthy, I would like at an Insured Series Policy. It is a combination of life insurance and investments that provides permanent protection and you only pay premiums for 12 years, while the coverage lasts you till the day you die.

 

Those types of policies do NOT have premiums that stop at a certain time period unless the investment has achieved a (typically unrealistically high) rate of return. You'd still have to make the premium payments. And the insurance agent and his/her commission are long gone.

Companies are legally prohibited from using the term "paid up" anymore.