Life Insurance While Still Young....

[Lydia]

I read the advice on the investing while young post, and even though I didn't ask, I got alot of useful information from the responses. Now I need guidance in regards to life insurance.

I'm about 25, no pre-existing medical conditions. I am somewhat clueless. What's a good company? What type would be best for me, that is not too expensive each month (broke college student, lol)? I more or less want something that If I pass away in any manner (accident or illness), my family or future family (depending on when I go) will be covered.

Any kind of info, even if partial, is appreciated. Thanks.

[mlwilliamsiv]

I can't offer you a whole lot of information on this subject because I am by no means a financial advisor. I did use to watch alot of Susie Orman's tv show and videos though.

I remember in one program she stated that if you DO NOT have any dependents...or you do not have anyone relying on you for support, then you DO NOT need life insurance. It is a complete waste of money.

You generally ONLY NEED life insurance when other people DEPEND on YOUR INCOME.

Hope this helps some.

-Marshall

[WendyR]

Marshall makes a good point, but I will say that buying life insurance at your age is a smart move for the future if you are interested in a whole life policy versus a term policy.

My parents purchased a whole life policy for me when I was 18. My husband purchased a whole life policy for himself when he was 22. When we got married and started a family at 33 (we are the same age), we decided to buy additional policies so we had more coverage, for obvious reasons. Even though we were both in great health at that time (and thankfully, still are), it was amazing how much those policy premiums increased just because we were that much older.

Whole life vs. term policies is something you should research. That would be a good starting point in trying to decide if purchasing a life insurance policy at this point in your life will work for you.

[Epiphany]

My 2 cents.

You need enough to provide for whomever you may leave behind. "Enough" depends on your situation.

If you do not have a family, no dependents whatsoever, I would get enough to cover funeral expenses. If you have a few assets then get nothing at all, they'll cover your expenses.

If you have a family (husband, wife and or kids) that do not rely on your income. Then "enough" is the costs of whatever type of service and funeral expenses you are going to have + the cost of any loans you may have on cars etc. Not much.

If your family does rely on your income, or you own a home that your income helps pay the mortgage on... then "enough" is 2-3 years worth of your salary + the entire mortgage and all loans (car etc). No one wants to lose a loved one and then go through years of financial hardship.

[Ronny]

Who depends on your income for their support? If the answer is no one and you still want insurance maybe you'd be better off just buying a small policy for 5k in benefits to cover funeral/final expenses. People in our age group usually don't need a lot of insurance unless we already are married or have kids. However, I've run in to a couple of insurance salespeople who strongly disagree. hilarious

[Lydia]

Hey erveryone, thanks for the info so far. MetLife's website breaks down life insurance to the basics. I definiltely do NOT want Term Life Ins. It seems impractical to me. I'm still researching between Whole Life and Universal Life. I know I do not have any dependents but want (at least) my funeral/burial expenses to be covered if I should pass before I begin a family.

Also, I've often heard that if I get a policy when I'm this young, the cost is fixed and cheaper in the long run.... Is this so?

[Lydia]

While we're on this subject, I do have one more issue. My mom is 60, with many health conditions (diabetes, high bp..) We were simply looking for a plan to cover funeral expenses.....but so far, everything is extremely expensive. Is there any alternative?

[Greggy_D]

Listen to Dave Ramsey. The guy is a genius that uses common sense.

The Truth About Life Insurance

Dave recommends this company which will find the right insurance for you at a great price:

Zander Insurance Group - Term Life Insurance - Disability Insurance

[Lydia]

Thanks everyone, for all the great responses (especially Greggy_D for the links). Basically my best choices are Universal Life or Whole Life. I have an appointment with a MetLife rep...just to get more infor, and a quote.