Life Insurance Policy

[Marcus_J]

what are some good insurance policies for a 21 yr old male non smoking.

[Quit Screwing Me]

I've always been partial to Metropolitan...........but that's only cuz I like their Peanuts commercials.

 

For a 21 yo non-smoking male, I would think any reputable company should give you a good rate. Met, Allstate, State Farm, Lib Mut, any of the big guys.

 

Some people prefer term. My feelings on term is that it's better for older people that would have to pay a higher rate. You're young enough where you can lock in a low rate now and build up a small cash balance over the years with a Universal Life policy or similar.

 

Other opinions will be along shortly.

[radi8]

I like the concept of AIG's "money return" policy.

It's a term policy, at the end of the term- you get part of your premiums back if you (well, your heirs) haven't collected the insurance.

 

I don't have such a policy and cannot speak to the details, but I thought the idea was interesting. Might be worth a look.

 

I do lean towards term in any case, I feel whole life is a bad investment.

Yes, it builds some cash value, but that cash value is lost when you die- you can't will it to anyone.

The catch-22 is if you do pull the cash value, you lose that part of the insurance. Can't have both.

If you want insurance, term is cheaper. If you want an investment, there are better. It's a hybrid product that does neither job truly well or efficiently.

 

 

Get the term, put the cash you save into a real investment, lol.

[aksarben]

Whole life is a waste of money!!!!

 

Buy term. Period.

 

 

But I have to ask, at age 21 do you even need to purchase insurance? Unless you have dependents or perhaps large debts(student loans) purchasing term insurance may not be necessary.

[travelgrl]

Ditto on the term. It is the cheapest and best way to go. We bought ours from State Farm and also some from AAA. If you are a member of AAA it is really cheap and we did not have to get a physical with AAA up to $250,000 worth of coverage. We have several small policies that add up to about $1million and I am sure that we pay about $500 a year or so total.

[Quit Screwing Me]

I do lean towards term in any case, I feel whole life is a bad investment.

Yes, it builds some cash value, but that cash value is lost when you die- you can't will it to anyone.

The catch-22 is if you do pull the cash value, you lose that part of the insurance.  Can't have both.

<{POST_SNAPBACK}>

 

 

Really??? I never knew that. I used to have a policy before I became poor and took the cash out but never knew that the policy got reduced. Oh, well, it doesn't matter anyway, cuz I'm taking it all with me.

[Marcus_J]

Whole life is a waste of money!!!!

 

Buy term.  Period.

 

 

But I have to ask, at age 21 do you even need to purchase insurance?  Unless you have dependents or perhaps large debts(student loans) purchasing term insurance may not be necessary.

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Well I don't have any at all not covered by parents or anyone and I do have a significant amount of student loans

[Pam]

Whole life is a waste of money!!!!

 

Buy term.  Period.

 

 

But I have to ask, at age 21 do you even need to purchase insurance?  Unless you have dependents or perhaps large debts(student loans) purchasing term insurance may not be necessary.

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Are you saying that student loans aren't even wiped out by the student's death?

[aksarben]

Don't know just threw the student loan reference out there. Not an attorney and don't know what state they're in so not sure how the individual's estate would be handled. Which brings me to another point, spend $ on a will if you don't have one.

 

The attorney can advise you state/federal laws which will give you a better idea if you need life insurance to cover anything.

[DeltaBlues]

Term and nothing but term.

 

Whole life, universal, and universal variable are all ripoffs. So buy term and invest. Student loans can be attached to your estate if not paid off. Same with credit cards, car loans, personal loans, just about any legitamate debt will be deducted from any estate before the beneficary gets it.

 

But make sure you do not get annual renewable term either. Also make sure you don't get term for first 5 years and it automatically converts to whole. Most agents wont tell you that part. You read it in the fine print of the policy. Get straight term level premium for a specific period of time.

 

Our's is Primerica. We pay $104 per month total for @600K smoking rate 30yrs.

[insuragent]

For a 21yo male..buy term to cover final expenses and whatever else may need taken care of..50K-100K term should be fine and reasonably affordable. (educated guess, $10 a month).

 

IF married, the old adage is 7X your income..again, depends on the situation. Personally, if I was young, married and had a mortgage, I would want a policy to cover at least half the mortgage, plus 3 years living expenses.

 

As far as co recomendations, price should be a factor. Not alot goes into servicing a term life policy, premiums are paid every 6 months or a year. IF your employer offers it, look into it with them through payroll. Also may try intelliquote.com.

 

Whole life is useful, but $$..unless your looking for less coverage and dont mind putting more $$ upfront, I would avoid this. Nice that you do build cash value, and can have funds avail for the future. If you have a low level of debt/obligations and can afford it, you might want to consider this. Many financial experts say no, but again depends on circumstances..I wouldnt recomend it for over 25K-50K in coverage.

[Marcus_J]

For a 21yo male..buy term to cover final expenses and whatever else may need taken care of..50K-100K term should be fine and reasonably affordable. (educated guess, $10 a month).

 

IF married, the old adage is 7X your income..again, depends on the situation. Personally, if I was young, married and had a mortgage, I would want a policy to cover at least half the mortgage, plus 3 years living expenses.

 

As far as co recomendations, price should be a factor. Not alot goes into servicing a term life policy, premiums are paid every 6 months or a year. IF your employer offers it, look into it with them through payroll. Also may try intelliquote.com.

 

Whole life is useful, but $$..unless your looking for less coverage and dont mind putting more $$ upfront, I would avoid this. Nice that you do build cash value, and can have funds avail for the future. If you have a low level of debt/obligations and can afford it,  you might want to consider this. Many financial experts say no, but again depends on circumstances..I wouldnt recomend it for over 25K-50K in coverage.

<{POST_SNAPBACK}>

 

where could I get some good unbiased information on a insurance policy and what's the deal with the cash value that will give me funds for the future in the whole life.

[DeltaBlues]

For a 21yo male..buy term to cover final expenses and whatever else may need taken care of..50K-100K term should be fine and reasonably affordable. (educated guess, $10 a month).

 

IF married, the old adage is 7X your income..again, depends on the situation. Personally, if I was young, married and had a mortgage, I would want a policy to cover at least half the mortgage, plus 3 years living expenses.

 

As far as co recomendations, price should be a factor. Not alot goes into servicing a term life policy, premiums are paid every 6 months or a year. IF your employer offers it, look into it with them through payroll. Also may try intelliquote.com.

 

Whole life is useful, but $$..unless your looking for less coverage and dont mind putting more $$ upfront, I would avoid this. Nice that you do build cash value, and can have funds avail for the future. If you have a low level of debt/obligations and can afford it,  you might want to consider this. Many financial experts say no, but again depends on circumstances..I wouldnt recomend it for over 25K-50K in coverage.

<{POST_SNAPBACK}>

 

where could I get some good unbiased information on a insurance policy and what's the deal with the cash value that will give me funds for the future in the whole life.

<{POST_SNAPBACK}>

 

for an unbiased view go to books: Consumer Reports Life Insurance Handbook

it's at my local library or you can buy it used for $65 off Amazon.

 

stay away from whole life you don't need it. Whole life will only give you b'n 3-6% but only to loan it to you at a rate b/n 4-9%. Why would you want a loan on your own money? If you don't pay it back then your life coverage could lapse when you need it the most, old and uninsurable. Also if die then the co. get's they're cut first so loan plus all interest payable to them will be deducted first. Lastly unless you pay extra then the already high premium the money accumulated in that "savings" account stays with the co. your beneficary won't get it.

 

If you can afford a high whole life policy comfortably then get a term take the difference and invest it. That way down the road you won't need life insurance at all because of investment you made now. Why pay insurance when you have cash to cover any final expenses?

 

Again get term say for 20yrs. level premium no annual renewable stuff, no converted to whole life junk either. Than sock away say $50 into a Roth IRA, or simple IRA, or if have access then a 401K, even a nonbank moneymarket is better than a whole life policy. If want access to it prior to retirement then go with a money market (emergency accounts, saving for a house 0-5yrs investment), mutual funds (leave alone for 5 or more years-preferable more).

 

You will be way better off.

[Marcus_J]

For a 21yo male..buy term to cover final expenses and whatever else may need taken care of..50K-100K term should be fine and reasonably affordable. (educated guess, $10 a month).

 

IF married, the old adage is 7X your income..again, depends on the situation. Personally, if I was young, married and had a mortgage, I would want a policy to cover at least half the mortgage, plus 3 years living expenses.

 

As far as co recomendations, price should be a factor. Not alot goes into servicing a term life policy, premiums are paid every 6 months or a year. IF your employer offers it, look into it with them through payroll. Also may try intelliquote.com.

 

Whole life is useful, but $$..unless your looking for less coverage and dont mind putting more $$ upfront, I would avoid this. Nice that you do build cash value, and can have funds avail for the future. If you have a low level of debt/obligations and can afford it,  you might want to consider this. Many financial experts say no, but again depends on circumstances..I wouldnt recomend it for over 25K-50K in coverage.

<{POST_SNAPBACK}>

 

where could I get some good unbiased information on a insurance policy and what's the deal with the cash value that will give me funds for the future in the whole life.

<{POST_SNAPBACK}>

 

for an unbiased view go to books: Consumer Reports Life Insurance Handbook

it's at my local library or you can buy it used for $65 off Amazon.

 

stay away from whole life you don't need it. Whole life will only give you b'n 3-6% but only to loan it to you at a rate b/n 4-9%. Why would you want a loan on your own money? If you don't pay it back then your life coverage could lapse when you need it the most, old and uninsurable. Also if die then the co. get's they're cut first so loan plus all interest payable to them will be deducted first. Lastly unless you pay extra then the already high premium the money accumulated in that "savings" account stays with the co. your beneficary won't get it.

 

If you can afford a high whole life policy comfortably then get a term take the difference and invest it. That way down the road you won't need life insurance at all because of investment you made now. Why pay insurance when you have cash to cover any final expenses?

 

Again get term say for 20yrs. level premium no annual renewable stuff, no converted to whole life junk either. Than sock away say $50 into a Roth IRA, or simple IRA, or if have access then a 401K, even a nonbank moneymarket is better than a whole life policy. If want access to it prior to retirement then go with a money market (emergency accounts, saving for a house 0-5yrs investment), mutual funds (leave alone for 5 or more years-preferable more).

 

You will be way better off.

<{POST_SNAPBACK}>

 

Whats the thing ur talking about a high whole life policy then get a term, take the difference and invest it. How does that work or I guess I'm trying to say what is that entail

[amszyh]

It entails taking the money you would have paid the whole life company and socking it away in a good mutual fund. If you were to compare a whole life policy with a term policy of the same value, the whole life is going to cost way more. You put that "way more" that the whole life would have taken their fee out of and invested poorly for you into your own investment.

 

I also agree with the other poster who said there really is no reason right now to get insurance if you have no dependants, etc. Generally you get 8-10 times your income to support whoever will need the money when you pass away. If you have no wife, kids, etc. right now, you may be able to put off the life insurance for now.

[hesiden]

GE Finaical 500K 20 year term life insurance for 300/year.

Age 37 when I got it last year, non-smoker.

Better deal than my wife (who is younger) because

I watched what I ate for about two to three weeks

before the blood test.

 

Cheaper if you pay by year than if by quarter or monthly.

 

I didn't know anything in particular about the company,

I found it using one of those "get the cheapest quote"

web sites. www.insureweb.com or something like that.

[sercfm]

All Gov't guaranteed loans are forgiven upon the death of the borrower or student.

[DHK]

Just talk to an insurance rep that you trust. Ask THEM your questions. Ask THEM to address your concerns.

 

While we are very knowledgeable on credit matters, not everyone on a public board is an expert in insurance. I may have a CA insurance license, but I'M NOT an expert.

 

Being 21 years old, your term insurance will be CHEAP. But is CHEAP the only value to consider?

 

If your budget is a concern (as it should be), I would be looking for a "return of premium" term insurance policy. At the end of the term, you can then invest your premiums received (received tax free) into a whole life policy. The only downside is that your payments may be 3x your normal term premiums.

 

Think of it as "saving by spending." If you live, you get all your money. If you die, your beneficiaries get the face value of your insurance contract. You only lose the use of the higher premiums for other uses.

 

If you want to build WEALTH, some whole life policies (permanent instead of temporary) may be a better match for you. I would look for a convertable term policy.

 

What if you are uninsurable during your term insurance period? You aren't GUARANTEED to be insurable for your entire life. You NEVER know what can happen during your life.

 

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Something else to consider is disability insurance. Your greater risk in life is if you CAN'T work, not if you die. I'd look for some if your employer doesn't offer it, OR you may be changing jobs from time to time.

[Marcus_J]

Thank you all I just had a few couple of questions from different views before I spoke with a cunning insurance rep, thats all.

 

Thank you