Should I Get Life Insurance - I'm 22 yrs old

[Kenji4861]

So I got a job and my company asked if I want life insurance.

Sounded funny to me at first, but the recruiter sounded very serious. He said I will only have to pay $4-5 for every 2 weeks and I will be funded $50k if I die.

Seriously.. I'm 22 years old, no children to support, do I need this?.. it's only $4-5/every 2 weeks. Let me know how some of you guys think about this.

 

It would take the financial burden of funeral expenses off your family if you died. You can change the beneficiary later when you get involved with some one that you love and trust. I say get it.

 

[bjc112]

I say get it too...

$10 bucs a month isn't bad, and like the man above said, can really help your family out if God forbid something happened to you.

 

[Ferocious]

I wouldn't bother.

Only get life insurance if you have kids who not old enough to work.

 

[whaleskinrug]

I'd do it and put your parents as beneficiaries

 

[Kenji4861]

Thanks guys, I'll go with life insurance. A regular funeral won't cost more than $50k would it?

I'm reading up on burial, caskets, and they say it costs about $7-8k.. and.. I think the rest $40k or so should cover cleaning my apartment, paying for the rent.. etc. Is this how it works?

 

[whaleskinrug]

Originally posted by: Kenji4861
Thanks guys, I'll go with life insurance. A regular funeral won't cost more than $50k would it?

I'm reading up on burial, caskets, and they say it costs about $7-8k.. and.. I think the rest $40k or so should cover cleaning my apartment, paying for the rent.. etc. Is this how it works?

basically. and a little something for loved ones to help them through what would be a major time of grief. obviously when you settle down, get a mortgage , etc. you may wish to increase it.

 

[rgwalt]

For now, you essentially need personal burrial money. For $120 a year, $50K of term life insurance is a good deal. When does the policy expire? How long do you plan to stay with the company? The policy probably expires when you stop working for the company, but your premiums will probably increase as you get older.

Right now you need enough life insurance to pay for your funeral and pay off student loans, auto loans, credit card debt, and any other debts you may have.

Ryan

 

[xSauronx]

Originally posted by: Ferocious
I wouldn't bother.

Only get life insurance if you have kids who not old enough to work.

thats why i have it

 

Originally posted by: Kenji4861
Thanks guys, I'll go with life insurance. A regular funeral won't cost more than $50k would it?

I'm reading up on burial, caskets, and they say it costs about $7-8k.. and.. I think the rest $40k or so should cover cleaning my apartment, paying for the rent.. etc. Is this how it works?

Average funeral is around 5K. The rest could be used as the beneficiary sees fit. Paying for immediate family travel expense to the funeral would be a nice use of some of the money. Paying your outstanding debts is optional.

 

[SilentZero]

Id do it...but thats just me. My wife and I both have policys that cost $16 per month for $250,000 worth of insurance. Its not a bad deal really, a benefit of govt service. Even when I was 18-21 without a family I still had coverage. Better safe than sorry...especially when your family would have to shoulder the expense.

 

[dafatha00]

That's a tough one since you're young. Personally I wouldn't do it.

 

[Zebo]

I don't believe in any insurance not required by law or lenders since by nature over the aggregate it's a losing proposition. But when you have children you need to insure they are provided for at least though HS so you may need to suplement your savings and retirment with insurance. But now? Just the cost of funeral if you don't have it saved... About 10K.

 

[Triumph]

Also consider that it is harder to get life insurance as you get older.

 

[Vette73]

If you have NO kids, wife/sig. other then NO. All you would be doing is putting money ina fund that fat, heavy smokers, drinkers, etc... will use.

I don't have health insurnace as I don't smoke, drink, and I DO work out, etc... so why pay the med's bills of all the fat lazy smokers and drinkers.

 

[SagaLore]

Yes get it.

And start on your retirement plan too.

 

[Indolent]

Originally posted by: Zebo
I don't believe in any insurance not required by law or lenders since by nature over the aggregate it's a losing proposition. But when you have children you need to insure they are provided for at least though HS so you may need to suplement your savings and retirment with insurance. But now? Just the cost of funeral if you don't have it saved... About 10K.

Originally posted by: Marlin1975
If you have NO kids, wife/sig. other then NO. All you would be doing is putting money ina fund that fat, heavy smokers, drinkers, etc... will use.

I don't have health insurnace as I don't smoke, drink, and I DO work out, etc... so why pay the med's bills of all the fat lazy smokers and drinkers.

So you guys don't care about the expenses your family would have to pay if you die? It's $120 a year for a "just in case" type of thing. I'd say it's well worth it. Especially if you have sizeable student loans that need to be paid off.

I don't have health insurnace as I don't smoke, drink, and I DO work out, etc... so why pay the med's bills of all the fat lazy smokers and drinkers.

ummm... what if you break a bone or need some type of unexpected surgery? or get cancer? (or any other of the many reasons perfectly healthy people have to go to the hospital) If you don't smoke, drink and do workout, your premiums would be very low anyway.

 

[dullard]

Originally posted by: Indolent
So you guys don't care about the expenses your family would have to pay if you die? It's $120 a year for a "just in case" type of thing. I'd say it's well worth it. Especially if you have sizeable student loans that need to be paid off.

It depends on the details of the insurance. There can be better deals - heck even investing that $120 a year on average would be a better choice. For example suppose he invested $120 a year and lived to the age of 70 (a typical lifespan). His investment should be worth over $100,000 by then. Investing on his own he'd be guaranteed the money where life insurance often has so many loopholes that you never get the benefits. So it is a gamble - will he die early or late? If he dies before 60, if the insurance wasn't cancelled by then, and if he happens to be lucky to die of a cause that the insurance covers, then the insurance gamble paid off. If not, then he could have done better with his money.

And by the way, most student loans are cancelled if you die (as long as the loan wasn't a private loan from a bank).

 

[dquan97]

I'd say DON'T go for it. Use the $ and 10% of your gross income into an emergency fund. Use that pot of $ in case something happens. Since you don't have any dependents or anyone who would be financially devastated when you die, you don't need life insurance.

 

[isasir]

I'd say go for it. $120/year isn't a big deal. That's 2 or 3 nights out partying. I'm 24 and I signed up for my company's life insurance.

 

[isasir]

Originally posted by: Triumph
Also consider that it is harder to get life insurance as you get older.

Job life insurance is diff't than the individual life insurance that you're referring to. AFAIK, there's no restrictions for company life insurance, tho' I think you do pay more if you're older, but still not much more.

 

[Soybomb]

You have no dependents to support, I'd just take the money and invest it. Its cheap but why start nickle and diming yourself for something you don't need.

 

[Eli]

If you do decide to get it.. when you're 40 with a family and you're worth half a million dollars..


Remember to be nice to your children.

 

[DT4K]

Originally posted by: dquan97
I'd say DON'T go for it. Use the $ and 10% of your gross income into an emergency fund. Use that pot of $ in case something happens. Since you don't have any dependents or anyone who would be financially devastated when you die, you don't need life insurance.

Problem with that idea is that any debts you have would have to get paid out of that money before any of it went to funeral expenses or to your family.
I'd get it. It's cheap and will help your family out just in case.

 

[sillymofo]

It doesn't really matter if you're 22 or you're 62, your chances of accidental death are just the same. The 62 yrs old guys would just have more shiets that would go wrong internally. So get the insurance, that's one less burger you'll consume for that two weeks period, thus increasing your chance of a healthier life.