Why should I get life insurance?

[dopcombo]

I'm 25, I just started work, and I've been thinking about my finances a lot.

I don't quite understand why i should get insurance though people have been telling me about it.

Isn't it nothing more than a fixed saving scheme?

Why not put that money in something else instead?

Any opinions? I've thought about this for a while. Sigh.
(Btw, I should probably say I'm not in the US.)

 

[Lifer]

Because if you die suddenly, your wife will be more financially secure.

Sorry, thought you said fiance.
If you don't have any primary beneficiaries that are worth caring about, skip the life insurance.

 

[dopcombo]

But I do have a gf that I'm quite serious about, and I might marry her within the next year or two.

And some people have told me that it'll cost a lot more when I get older.

 

[jeremy806]

Life insurance is an overall financial loss, and will underperform any investment.

My recommendation is to only buy lots of life insurance if you have dependents that would be in the poor house if you kicked it, or if the insurance is partially paid by an employer to reduce the cost to you to a level that is too hard to refuse.

Other consideration are: does your dependent work (are they screwed without you).

Jeremy

 

[Deadtrees]

Life insurance is about keeping you poor when you're alive, and making you rich when you're dead.

 

[dopcombo]

I agree with you Jeremy.
My gf (wife to be i guess) does indeed work. She has a university degree so she won't starve if I should get struck by lightning tomorrow.
And my parents have taken care of themselves very well.

I guess I should lay off insurance until I'm older then.

Maybe when I have children.

Now back to thinking about investments.

 

[Aceshigh]

I would not get life insurance unless you have children. Until then most jobs have some amount of automatic life insurance coverage, like two times your salary.

When you have some children I would get some additional life insurance to make sure they are taken care of in the event something happens to you.

Another thing I would not do is get life insurance coverage for your children. Many people do this and I can't understand why. Heaven forbid anything happen to them, but if it does there is not going to be any loss of income because they are not working.

 

[jeremy806]

Do not forget that wife and children can collect some social security if you kick it. Between the SS and employer provided insurance, you may not need to purchase that much private insurance, if any.

Lastly, no betting on your child's death.

Jeremy

 

[FoBoT]

you probably don't need it yet

if you don't have a family relying on your income, then you don't need life insurance , if you die, who will be put out (financially speaking) ?

if the answer is "nobody" , then you don't need life insurance, yet

 

[FoBoT]

Originally posted by: dopcombo
But I do have a gf that I'm quite serious about, and I might marry her within the next year or two.

And some people have told me that it'll cost a lot more when I get older.

not really, if you buy level term, sounds like you will probably be married before you are 30, so wait until you get married, the rates for level term go by age, so if you get it by the time you turn 29 (before you hit the 30-39 group) the rates won't be much different

wait until you are married

 

[dopcombo]

I don't live in a place with social security.

I have to take care of my own future here.

Thanks for the advice though.