I'm 18. Should I get life insurance now (while it is really cheap)

[Turin39789]

Originally posted by: crownjules

Originally posted by: FoBoT
the 18 year old himself has ZERO reasons to buy life insurance. if he dies, he's dead. no wife/kids that will suffer from loss of income or get saddled with his debts

OP benefitted from the co-signing and used the money. It would be very sh1tty of him to leave his dad (or whoever) with the debt if the unfortunante did occur and he died. Life insurance doesn't exactly cost a lot when you buy an amount that would cover debt. I pay about $1.50 a month.

His dad did'nt cosign!

 

[jrphoenix]

Originally posted by: Naustica

Originally posted by: acesup

Please explain how term insurance is "for the most part a rip off".

This ought to be good.

Because he makes a higher commission when he sells whole life insurance They have all sorts of gimmicks to make it more appealing - you can loan money to yourself, etc. I have never heard a true financial advisor give such advice - only insurance salesmen who prefer the title of "financial advisor."

Essentially, whole life policies are no different than purchasing a term policy and investing the difference. Except that with the whole life policies, your options are quite limited as far as the investing goes.

Here's some advice coming from a person who has nothing to gain by convincing people to buy one type of insurance vs. another type: As stated by multiple people above, there's a time for life insurance. And, you select the amount of life insurance based on the needs of the family you'll leave behind. But, you buy term life insurance. You *this is the important part* also invest a portion of your income. By the time you're 65 and term life policies have become expensive, you should be ready to retire with few debts, and plenty of money in the bank to cover final expenses, etc. Thus, you should no longer need life insurance at that age.

Think about it for a moment. Look at those nice tall shiny new buildings the insurance companies are building. The more money you're giving them (and whole life is more expensive than term), the more money they're going to make from you. They're not in the insurance business merely to provide a service to you... they're out to make a profit. Personally, I think you can do better buy shopping around, rather than being forced to purchase your life insurance policy and do your investing through the same vehicle.

ok well i was going to stop but i guess some people are just uninformed....
there are three ways you can get your info
1. experience-which i do everyday
2.hearsay-what is popular in the news right now(buy term invest the rest)
3.an article-usually in a magazine that was paid to write that article

so how is term a rip off... well your paying for something they is a temporary service kind of like cell phone service or cable tv... it has its place like i said.... but at the end of the day you have no cash value and also you get no dividens(return on your money) ... also if you have any problem with these (insurance sales people) that you hear so much about file a complaint if they did any wrong doing and get their license stripped let the courts decide... I have my CFP anI seld i actually dont sell to much life insurance l annuities they are a great investment... but like i said people now adays are on that slogan buy term invest the rest cause we are still in a bear market and this always comes up when we are in a bear market(for obvious reasons) ALSO WHAT DO I HAVE TO GAIN ON THIS FORUM BY TELLING YOU TO BUY (WHOLE LIFE) I HAVE NEVER AND PROBABLY WILL NEVER MEET ANY OF YOU SO I WILL NOT BE SELLING YOU ANYTHING... i LOVE PEOPLE WHO READ MONEY MAGAZINE AND WATCH CNN AND THINK THEY KNOW WHAT THEY ARE TALKING ABOUT... THESE ARE THE SAME PEOPLE I SEE WHEN THEY SHOULD BE RETIRED WORKING AT THE LOCAL SUPERMARKET AND WALMART... NOT CAUSE THEY WANT TO WORK ITS CAUSE THEY HAVE TO WORK
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LOL. Not only you sell crappy whole life for commission, you sell crappy high commission annuities and promote them as great investments. :disgust:
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just my 2 cents...... term is a rip off..... You pay and of all term policies ever written, less that 1% pay out. With permanant policies you have something that is guaranteed & can be used for estate purposes.

 

[jrphoenix]

Originally posted by: everman

Originally posted by: acesup

I have my CFP and i actually dont sell to much life insurance I sell annuities they are a great investment...

Why do you say that? Annuities generally can be replaced by a much better option. They're only good for people who need special features offered with certain annuities because they're an insurance product.

Yes you are an insurance salesman, yes you stick to the highest commission items. You're probably also in violation of the CFP Board standards and practices.

What tax deferred device would you recommend after the 401k and IRA are maxed? Just curious?

 

[jrphoenix]

Originally posted by: PokerGuy

Originally posted by: jrphoenix
Big yes.... It's cheap now & you don't want to leave your family with your loans / debt. Heck, it costs 8k - 10k just to bury someone today. Also consider that you are assuring you have insurance when you may need it later down the road. I've seen people develop illnesses that are young and then you can't get life insurance or you'll pay through the nose.

Of course if you are self centered and don't care about the future, the answer is no.

Has nothing to do with self centered or not caring about the future, you have to approach it as a straight value proposition. The OP said his parents are not co-signers on his loans, so they are of not affected by loans. Further, parents would not be affected by any debts that OP leaves behind at death, so that's not an issue either. Bottom line, you only need insurance if someone depends on something you contribute (money or otherwise). Insurance is there to provide that contribution if you're not there. If nobody is dependent on you, insurance makes no sense.

I stand corrected... didn't read about parents not cosigning loans.... However, what would you say about estate possiblities? Setting up irrevocable trusts, leaving money to a charity / university / cause. Life insurance is not only for dependents.

 

[jrphoenix]

Originally posted by: PG
Before anyone asks, yes, I can sell life insurance and I am licenced. And yes I work for a company that does not sell whole life insurance.
The company was started by a guy who watched his mother struggle after his father died and was only insured by a crappy whole life policy.
He later even worked for an insurance company for a while that sold whole life so he knew it was a ripoff. He then started a new insurance company that doesn't rip people off or overcharge and we only sell term. And we do not advertise.

In training I've seen lots of horrible policies, and there are bad term insurance policies too. One they showed us last week was shocking to say the least.
A couple had term insurance that renewed every 5 years. The price went up each renewal, but at first it didn't seem too bad. What they didn't know was that near the end of the term when they were about 60 the total cost of the policies would be about $21,000 each year. No, that is not a typo. Clearly that is a ripoff and something they would have had to let lapse because of the excessive price.

Not all term is the same and some is a huge ripoff. You need to pay attention to details. If anyone has other questions you can PM me.

Primerica?

 

[jagec]

Originally posted by: sandmanwake
For personal reasons, I would like to take out a term life insurance policy on my parents. What sort of information would I need to arrange this? How much cooperation from my parents would I need to get the insurance?

Not touching this one:Q

 

[imported_Baloo]

Absolutley not. Do not buy life insurance at your age. It's cheaper now, true, but you make less money now than you will later.

 

[pontifex]

Originally posted by: Baloo
Absolutley not. Do not buy life insurance at your age. It's cheaper now, true, but you make less money now than you will later.

hopefully...