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Insurance Plan Questions

Maybe it is the fact that I got less than 3 hours of sleep last night, but I'm confused.

What does bankruptcy and medical bills have to do with life insurance? Do you have a family that relies on your income?
 
OP,

I chose to max mine out. I'm 23 also, and have 6x insurable pay plus the 1x basic the employer gives me. I know a lot of people would say that's too much insurance to have when you're young, but in case something happened to me, I'd want my wife to be able to pay all the bills, plus have enough to pay cash for a new house. It's only like $4.50 more a paycheck.

In your case, I'd recommend the highest they will give you without having to have "proof of insurability" through the insurer. Since I had such a high request, I had to do lots more paperwork, and had to go take a physical. Kind of a pain in the a$$. I think 3x was as high as I could go without needing Proof of Insurability.
 
Lots of good advice in here already. kyparrish covers all the salient points perfectly. Do exactly as he suggests. Eventually, when you have a family/kids, you may want to bump up the coverage amount or get supplemental insurance (Prudential, AIG etc.) to cover your family needs in case something should happen to you.

 
I forgot to add that I'm single. Salary @ mid 30k's.

I'm leaning towards 3x salary at the moment. (anything more requires proof of insurability)
 
I am single and Early 40's and for me life insurance is a waste of money for me...I much rather invest it in an IRA. I got my will set up so my kids will have enough to plant me plus they will inherit all my worldly possessions.

My Ex's get squat the same thing they left me 😉


Ausm
 
Oh wait a second, life insurance and health insurance are different things?

I need to get a book or something....
 
You should shop around for term insurance because it will probably be cheaper than what you are paying for insurance through your employer. What's more, if you have your own policy you can keep it even if you change jobs.

If you're single, you don't need life insurance.
If you're married, you should have enough so that your spouse can live normally. And if you have kids, you should have enough to help them get through school if necessary.

For most people who are married with kids, that's probably over a half-million worth of life insurance.

Most people who need life insurance need it up until age 50 or so. By then you would have enough retirement savings to cover your spouse's needs if you die, plus your kids would probably be on their own by then.

Just my opinion.
 
Originally posted by: tallest1
Oh wait a second, life insurance and health insurance are different things?

I need to get a book or something....
Click to expand...
Oh god, yes you do. One is if you DIE, who will get that money? One is used when you're still alive. You can probably figure out which 🙂

If you're concerned about bankruptcy because of a long term illness--something overblown by that stat and easily countered by not living beyond one's means (as most people do, so any disaster puts them to the brink of bankruptcy)--Blue Cross Blue Shield, for instance, has an extra thing you can get with them. Typical companies will not offer much in the way of long term disability.

Life insurance is useless unless you have somebody you want to give that money to.
 
Originally posted by: tallest1
Oh wait a second, life insurance and health insurance are different things?

I need to get a book or something....
Click to expand...

Yep, you're asking us about LIFE INSURANCE but you're thinking of HEALTH INSURANCE, two very different kinds of coverage.

On my life insurance I have it max'd out, costs me like $3/mo for around $150k coverage.

For health insurance it's not as cheap, about $180/mo for two of us health/dental/vision.
 
If medical bills are your worry I'd look into more medical coverage then life insurance. Also, it would vary if you have kids, if your married, have a house, how much your wife makes etc etc etc.
Essentially, theres those who would be wise to max out life, and those who would be just as well served to have only 1x or 2x. Its best to sit down with your wife (If you ave one) and really nail down what it would take to take care of things if something happens to you. Obviously if she makes more then you, you only have an apartment or you have pay-off insurance in the event of your death and no kids she may not necessarily need 6x your pay (Although it would be nice!) versus if you do have a house, no payoff on death mortgage and kids it would be in your best interest to get more.
Again, it varies by individual, and its best to sit down and talk it over with your wife to really see what would fit you the best. It would also help to figure out what she would nee dot do. Obviously "just payin the bills" isnt exactly the goal. She may suddenly need to go to college (If she has no college degree...ie...Your the primary wage earner) so thats also something to consider.
 
I have heard that you should have 7x your annual salary in Life Insurance. Of course thats coming from the life insurance compaines so who knows.
 
Unless you're talking about insurance that covers disability and long-term care, if you don't have any dependents (aren't married, no kids, aren't taking care of your parents or a disabled sibling), you don't really need ANY life insurance. Often, though, life insurance is of the AD&D type that will give you some cash if you become disabled. Check into the details before you make up your mind.
 
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