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

[amnesiac]

$120 for $50K of coverage on a 22 year old is overpriced.

You can get $100,000 of coverage for something like $150.

YOu can get $50K of coverage for 20 years for about 60% of that price.

 

[Scarpozzi]

Check with your rents to see if you're already covered under one of their plans. No need in paying if they already are. I have a life insurance plan and I'm 23.

 

[Indolent]

Originally posted by: 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).

You make it sound like no one ever collects on life insurance. I'm 19 and just got a $200k coverage for $360 a year or something (mostly for loans from going to a private college, what I couldn't get in regular student loans I needed in PLUS loans so they're in my parents name). The only death I recall it doesn't cover is suicide within 6 months of getting the insurance.

 

[amnesiac]

^^^ $200K coverage for $360 a year is insanely overpriced. Especially for a healthy (which I'm assuming you are) 19-year-old.

IMO, for younger people I'd look into a universal or whole life plan, which guarantees coverage to age 90-95-100, and also accumulates cash value which you can take out as a loan from the policy should you ever need additional funds.

 

[DrPizza]

Originally posted by: amnesiac
$120 for $50K of coverage on a 22 year old is overpriced.

You can get $100,000 of coverage for something like $150.

YOu can get $50K of coverage for 20 years for about 60% of that price.

Agreed... that's way overpriced. The amount you're paying per week isn't bad, but you should be getting much more coverage than that. I'm 36, and I'm paying $8 per [edit: PER MONTH] for $100,000 term.

 

[Ernieb]

Originally posted by: 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.

yea you may not have any kids or spouse that you have to support
but later on in a couple of years... or 10 years.. you are going to have a family
you are going to have children and a wife ..
i would suggest you to buy it at young age.it's cheaper..
besides..your parents can take the money if you died...even if you don't have a family

 

[DrPizza]

Click here for an insurance estimate.... You'll have to enter an age for someone older though, it starts at birthdates of 1978 (the youngest it'll estimate for is 25 yrs old) A quick calculation for a 25 year old non smoker in NY was $100 per year. TWICE what you're getting for less money.
insurance estimates

 

[DrPizza]

Originally posted by: amnesiac
^^^ $200K coverage for $360 a year is insanely overpriced. Especially for a healthy (which I'm assuming you are) 19-year-old.

IMO, for younger people I'd look into a universal or whole life plan, which guarantees coverage to age 90-95-100, and also accumulates cash value which you can take out as a loan from the policy should you ever need additional funds.

I've gone to 2 financial advisors who had nothing to gain from any recommendations to me.... Both agreed that universal or whole life plans are not worth it. Get term. When you're 65, your only concerns should be the burial costs. By then, you should have as much accumulated that you no longer need term insurance, and the net value of your investments should be more than enough money for survivors should you kick the bucket. If you save and invest the difference in premiums between whole life and term, you have much more control over the value. Grossly simplified, whole life = term + investment. Keep them separate, and you'll have more control over your finances.

 

[render]

hell NO

 

[Looney]

Definitely get it. At your age it's cheap as hell, and the payoff is good. Like so many have said, put your parents as the beneficiaries.

 

[Soybomb]

MO, for younger people I'd look into a universal or whole life plan, which guarantees coverage to age 90-95-100, and also accumulates cash value which you can take out as a loan from the policy should you ever need additional funds.

I'm with dr pizza, he doesn't need whole life insurance. When you're young and you have no dependents you shouldn't need it, when you're old all you need to worry about is covering putting you in the ground. When you've got a family that would be under a financial burden in the event of your demise you should take out a sizable term policy. This doesn't seem all that necessary to him, or even a deal.

 

[dquan97]

Originally posted by: Shanti

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.

Does the OP have any debts?

 

[bleeb]

I'd say get it now, but get something relatively cheap. think long term of paying that amount. Also you want to check to see if the insurance is going to stay with you if you retire, or if you leave the company. Getting life insurance now is REALLY cheap and you get a TON of coverage.

 

[Ameesh]

i have a 3 quarters of a million policy on me, its extremely cheap through work so i dont even notice it being paid through but in case i die i know my parent will be set up for the rest of their lives.

 

[Indolent]

Originally posted by: amnesiac
^^^ $200K coverage for $360 a year is insanely overpriced. Especially for a healthy (which I'm assuming you are) 19-year-old.

IMO, for younger people I'd look into a universal or whole life plan, which guarantees coverage to age 90-95-100, and also accumulates cash value which you can take out as a loan from the policy should you ever need additional funds.

Ahh, you're right. That is way overpriced. I don't know where I got that number from. Taking a look in my checkbook, it was only $217.