What type of Life Insurance is best for my husband and I? (We just purchased a home, we are both 23 years old)

Question

My husband and I are both 23 years old and we just purchased a home. We have been under pressure from our Insurance Agent and our Mortgage broker to obtain Life Insurance in case something happens to one of us.

We would like to have coverage in case something happens. I know the importance of Life Insurance, as my mom was killed in a car accident when she was only 38. So, we want to be protected, and we want our house to be safe.

We are pretty much clueless when it comes to Insurance policies. I ALREADY LOOKED UP THE INFO ON WIKIPEDIA, SO PLEASE DON'T GIVE ME MORE OF THAT. I want opinions on what the best kind of Life Insurance is for us.

Term (but if it is a 30 year term, does that mean when we are for example 54 and something happens after the 30 years, we aren't covered???) or Permanant (whole life, and others). We didn't like the decreasing term policy our agent showed us. We have gotten 2 quotes for Term Life.

Help us make an informed decision!!! Please!

Dan, I don't have your email address!!!

Answer 1

This is a tough question, but this is Yahoo! Answers, so I'm here to help.

First, bankrate.com is a well-known, excellent website that has a calculator for this (see below).

If your insurance agent is "pressuring" you, I surmise that he/she is not acting in your best interest, but rather, his/hers. Purchasing life insurance, while prudent, is something that should be done with an advisor whom you trust completely and feel zero pressure.

For more information, please visit your state's insurance department website. They provide objective information that will assist you in your purchase. Attached is a sample for the state I live in, Texas. Good luck, my young friends!

Answer 2

You can save on your insurance by compare quotes at FREETOINSURE.INFO-

RE What type of Life Insurance is best for my husband and I? (We just purchased a home, we are both 23 years old)

My husband and I are both 23 years old and we just purchased a home. We have been under pressure from our Insurance Agent and our Mortgage broker to obtain Life Insurance in case something happens to one of us.

We would like to have coverage in case something happens. I know the importance of Life Insurance, as my mom was killed in a car accident when she was only 38. So, we want to be protected, and we want our house to be safe.

We are pretty much clueless when it comes to Insurance policies. I ALREADY LOOKED UP THE INFO ON WIKIPEDIA, SO PLEASE DON'T GIVE ME MORE OF THAT. I want opinions on what the best kind of Life Insurance is for us.

Term (but if it is a 30 year term, does that mean when we are for example 54 and something happens after the 30 years, we aren't covered???) or Permanant (whole life, and others). We didn't like the decreasing term policy our agent showed us. We have gotten 2 quotes for Term Life.

Help us make an informed decision!!! Please!

Answer 3

Go for a long term whole life policy with only death benefit. Long term is possible as you both are young. IT will also benefit you as your premium will be relatively low.
Work out how much you are able to apy on insurance every year and ger a policy which will give you the maximum coverage for that amount.
Do not consider any insurance agents offers for an investment linked scheme. These will have higher premiums and lower coverage and the returns will be similar if you go for any other direct investment.

Answer 4

Personally, I own a 30-year term insurance with $500,000 coverage and only pay about $48/month for it. I'm 24 right now and bought it when I was 23. So when I become 53, I hoping that most or all my financial obligations are paid off and that I have accumulated lots of money in my Roth IRA. If I still need life insurance at age 53, I can decrease my coverage amount to my family needs. At age 53, I shouldn't be thinking about life insurance. I should be thinking about whether I have enough saved toward retirement? I don't want to back to work when I retire. That's why I buy term and invest the difference.

When you buy term, you are also suppose to have extra money left over to save toward retirement. When you buy whole life, you don't have any extra money because whole life is very expensive. In whole life policies, rate of return on savings is very low and if you want to use it, you have to BORROW it. Do you like to borrow your own money and pay it back?

That's why I choose term insurance. Why should insurance have a savings plan attached to it and that when you die, your family only has access to the face amount and not the savings? So, if you want your family to have the best of both worlds, buy term and invest away each month.

Answer 5

I would recommend you to visit this site where you can compare quotes from the best companies: http://INSURECOMPAREQUOTES.US/index.html?src=2YAkoamY10mg

RE :What type of Life Insurance is best for my husband and I? (We just purchased a home, we are both 23 years old)
My husband and I are both 23 years old and we just purchased a home. We have been under pressure from our Insurance Agent and our Mortgage broker to obtain Life Insurance in case something happens to one of us.

We would like to have coverage in case something happens. I know the importance of Life Insurance, as my mom was killed in a car accident when she was only 38. So, we want to be protected, and we want our house to be safe.

We are pretty much clueless when it comes to Insurance policies. I ALREADY LOOKED UP THE INFO ON WIKIPEDIA, SO PLEASE DON'T GIVE ME MORE OF THAT. I want opinions on what the best kind of Life Insurance is for us.

Term (but if it is a 30 year term, does that mean when we are for example 54 and something happens after the 30 years, we aren't covered???) or Permanant (whole life, and others). We didn't like the decreasing term policy our agent showed us. We have gotten 2 quotes for Term Life.

Help us make an informed decision!!! Please!
Update: Dan, I don't have your email address!!!
Follow 13 answers

Answer 6

Term life is most economical but after a 30 year term and a 30 year mortgage your home is paid off. By then you won't need the life insurance for making the mortgage payments. If you are smart now, you will put money into a 401K plan (tax free) so that after 30 years you will have enough that you won't need that term insurance to continue because your 401K will transfer to each other. Look into revolkable trusts, joint tenantcy, survivorship, and all of that with an estate lawyer. For any matters relating to finance, written in plain English, check out the books by Suze Orman at your library. I assure you, you will be enlightened on the whole insurance nightmare. Whole life is extremely expensive. You are much better off planning your own life and death. Insurance is VERY important but don't rely on your agent to do the math for you. They are pretty much on commission to overinsure rather than protect you. Check out what Suze Orman has to say in her books ... and Saturday night TV show on CNBC (cable).

Answer 7

Personally it depends upon the type of persons you are. and if you are likely to keep the insurance. You can buy partipating life insurance in which dividends are paid back into yuor policy making it more valuable, but it's high and the supreme court ruled in the 50s that particpation insurance was nothing more than returning a portion of over charged premiuums to you.
Personally I think if you are 23 and are finance able to spend two a monthon insurance I would buy term for 30 years even cheaper reducing term and invest t he balance in cd deposits and leave it alone. Henry Ford said compound interest is the strongest thing on earth andhe was right,.
Here is some examples; If you are 23 in good health, none smoker, not over weight than you could buy form prudential about 500,000 for 30 years level term for about 34 dollars a month.for a male. less for a female. thiswill vary company to company. but the point is if you can spend 200 a month (200 as an example) and bank the balance in savings and leave it you would come out miles ahead over whole life.
If you spent 70 a month on the actual insurance plan and the balance on savings you would have invested $25,200 dollars in the insurance plan and 46,800 in the savings account not counting all of the interest built up.
This time and time again will beat the odds on just buying insurance. with something like thios your family is covered for both of you. it's all according how much you need and want.
!50,000 at about 40 a month for both of you with a company like prudential or american general is not a bad deal if you bank the like amount in savings. you always buy insurance because you need it for protection.,to offset the cost a like amount or partial of the amount you pay for coverage invested in savings will remove the cost in the future. the interest on your savings covers it.
or that is my story and I am sticking to it>:)

Answer 8

If I were you, I'd go back to the bank I worked with on my loan, or your current bank for checking and savings, ask to talk to a financial adviser at the bank.

Explain your concerns, and listen to his opinions.

Second, ask 3 or 4 uncles and aunts who they have used for insurance, who they really trust, go talk to that person, and ask them to explain the differences and advantages to both kinds of insurance.

Third, if either of you work for a larger company, see if the HR department has anyone who consults with employees about financial concerns and visit with them.

Finally, now that you have a lot of information, weigh the options, and make decisions.

Personally I'd recommend a combination. Have a Whole Life policy of a more minimal amount say $50,000 to $100,000, then have a term life insurance policy for a higher amount. The term life is to cover your risk while you establish your financial security.

Enjoy the new house, and may it be filled with love, and the pitter patter of little feet.

Answer 9

Get a whole life/Universal Life policy. You'll pay more money, but you'll get that money back. If you get a 30 year term, at age 54 life insurance will be about 400% higher than what you'll pay now. If you need help, e-mail me. Dan

Answer 10

term would probably be your best bet right now. you are both young and if in good health, the premiums will be cheap. most term policies offer a conversion option to where up to a certain date you can convert your term into a permanent (universal or whole life) plan that will accumulate value. the value can then be borrowed against to pay for your any expenses you may come across.