27, single, no kids, great health, should i get term life insurance?
I spoke to an agent and he recommended life insurance (since in the future I plan on having a family, kids husband). Term insurance for 10 20 or 30 years is pretty cheap ranging from 10-16 bucks a month for me, whole life is A LOT more. I understand the rate for whole life will just keep going up as i get older, but he said it would make sense for me to get term just so I can take the medical test and in the future 10 years (or before the term life insurance expires) I decide to get a whole life policy with the same company (met life) they would still quote me a premium at the health I had when I got my term policy (in case my health were to worsen)….
Am i Making sense..
So basically he sa
February 1st, 2010 at 2:58 AM
Yes, but get life insurance long enough where you have no more debts, no one dependent on your income, and have time to save for retirement.
Base on situation, I recommend getting a 30 year term insurance that is guarantee renewable and is convertible into another term insurance. You don’t want whole life insurance at any point in your life because that is expensive and a waste of money.
You can learn more about whole life insurance here: http://finance1o1.blogspot.com/2008/08/whole-life-insurance.html
While you have term insurance, you should consider investing your money in a Roth IRA. While the market is doing poorly now, it is the best time to invest since the price per shares are very low. That means you can own more shares for your money. While you can’t predict how the market will perform in the future, history has shown that the market has always rebound. The best way to offset your volatility to market fluctuations is by investing using Dollar Cost Averaging http://finance1o1.blogspot.com/2007/03/investing-tip-dollar-cost-averaging.html
February 1st, 2010 at 2:58 AM
Only life insurance to get would be "Term Life." But who would be your beneficiary? Your insurance agent is simply trying to make his commission.
February 1st, 2010 at 2:58 AM
Get the policy. It will cover the cost of funeral and debts you leave behind,
February 1st, 2010 at 2:58 AM
Put your $ in a Roth IRA instead.
February 1st, 2010 at 2:58 AM
What’s the GOAL of the insurance?
To buy a product now, just because it’s cheaper, is DUMB if it doesn’t meet one of your financial goals. It’s just like going to Home Depot, and buying power tools, because, of course, they’re cheaper now.
Set the goal first. THEN select the products that meet that goal. You’re being SOLD.
February 1st, 2010 at 2:58 AM
Yes, get level term insurance, but make it a 30 year policy while you are still young and in good health.
February 1st, 2010 at 2:58 AM
I agree with Country lovin. Put the money in a Roth IRA (or similar set up). At this point, you’re just throwing the money away in a term policy. If you can afford it and really want the insurance, get a whole life policy. Also, does your employer offer you 1x your salary as a benefit? If you’re single, that’s really all you need. Put the extra policy cash in something that will really benefit you in the future!