life insurance?

Question

I would like to get life insurance, I am single, going to be 23 years old, I dont need anything major but i would like enough to pay off all of my bills and student loans, if something should happen. What would you recommend getting. I have done a google search but that just overwhelmed me with all the different places. Any suggested would be useful. Thank You.

I guess i should of mentioned that I will have one dependent. I have no cosigners though.

I live in iowa

Answer 1

The following site will give you a free side by side comparison quote of the best companies. It is free and easy and then you can make an informed decision

Answer 2

Get some good referrals for a good Agent in your area. I recommend going to a life insurance Agent and not to a property Casualty Agent. Not that a Auto Agent can't help you but some of them are captive and can only sell you their companies life policy.

There is no correct answer as to the amount or from which company. Everyone has different financial needs and the Agent should be able to explain the details of a policy.

Ask lots of questions, How big is the Company? What is it's AM Best rating? How much is the policy fee? What are the band breaks for a cheaper cost per thousand? What is permanent insurance? If I get sick can I convert the term to permanent insurance with no health questions? What is waiver of premium and why should I consider it? What is Living Benefits rider and does it cost extra?

Ask the agent how long they have been in business? Do they work for a particular company? What is their specialty? Will they quote you at least three different companies? What is entailed for the exam that you will have to do? How long does it all take to get a policy in force?

At your age term insurance is probably the smartest move.

Good luck.

Answer 3

Hi,
You are still young, so usually I would say you don't need life insurance(yet), but if you have a dependent who could need financial assistance for many years, you should get as much term life (no investment/surrender value = cheaper) as you can afford, as cover will only get more expensive as you get older (maybe sicker) and the sum insured will shrink in real terms over the years. It may seem expensive now, but relatively speaking this too will diminish. Actually cost of cover has been dropping in recent year, compared to when I first took out cover.

There are loads of sites that will give you comparisons on-line or offline - the one I used is listed as a source, but there are many others. Their advantage is that on-line brokers will often cut back commissions to the bone, so can provide real savings. You don't need anything too complicated, so why pay big broker commissions?

I took out a "saving" mortgage life insurance policy years ago and it was the biggest waste of money, never had a hope of achieving its projected growth. Now I just have straight term insurance and I'm happy with that.

PS I believe Life insurance is also an excellent way to leave money to your heirs from a tax planning point of view...I have seen resources that suggest foreign life insurance even more so - in any case, I believe that the dependent should own the policy on your life and you can 'gift' them the premiums if necessary, think this can avoid the insurance being counted as part of your taxed estate ....anyway check that out with a tax expert!

Good luck.

Answer 4

When buying life insurance, you want a policy which fits your needs without it costing too much. First, you should decide on how much you will really need, how much you can afford to pay, and the type of policy you want. Second, find out what various companies charge for that specific kind of policy.

One way in deciding on how much life you will need is to figure out how much cash and income your dependents will need if you were to die in the near future. Think of life insurance as a source of cash needed for final exprenses, paying off taxes, mortgages and/or other debts. Life insurance can also provide income for your family's living expenses, educational costs, and other future expenses. Your insurance policy amount should come as close to making up the difference between 1) what your dependents would need if you were to die now, and 2) what they would actually need.

There are three basic and current life insurance policies: term insurance, whole insurance, and endowment insurance. The following is an outline in which the important features are noted.


TERM INSURANCE

Coverage protection: for a "term" of one or more years, usually 30 years being the maximum
Death benefits: paid only if the policy owner were to die within that term of years
Renewable: some are renewable for more additional terms even if the olicy owners' health has changed
Convertible: before the end of the conversion period, the policy owner may trade the term policy for a whole life or endowment policy even if he/she is not in good health.

WHOLE LIFE INSURANCE

Coverage protection: death protection for as long as the policy owner lives
Cash values: a benefit the owner does not lose when he/she stops paying the premiums
Loan: the cash value may also be used as collateral for a loan

ENDOWMENT INSURANCE

Income benefit: pays a sum or income to the policyholder if he/she lives to a certain age
Death benefit: if the policy holder were to die before that certain age, the death benefit would be paid to the designated beneficary or beneficiaries

In summary, do not buy life insurance unless you plan to remain faithful to it. A policy can be a smart buy when hels for 20 to 30 years, but it can be very expensive if you decide to quit during the early years of the policy.

When you finally receive your new policy, be sure to thoroughly read through it and inquire with the agent on anything that you do not understand. It is also important to review your life insurance policy every few years or so to keep up with income changes and life responsibilities.

Answer 5

There is numerous kinds of life insurance out there. Problem is: Life agents don't care about you, only about how much money they can make. If you can't afford it, they will ignore you. If you do have money, they will sell you the most expensive product there is, whether online or by person.

If you want to read about the different kinds of life insurance out there, this blog sums it all up: http://obe231.blogspot.com

When choosing a life insurance company, you should check its financial strength and ratings from AM Best. AM Best rates all insurance and financial companies. After choosing a company, you need to see what other benefits that the life policy can offer. For example, does it let you use 40% of the face amount in case you become disabled? Do not be fooled by the life agent when he/she says that cash value is good way to build for retirement or that your policy will be paid up. Life insurance is never paid up. Some way or another, you are paying it (either from your own pocket or from the cash value).

I personally own a 30 year term with Primerica Life, which is own by Primerica Financial Services, and have $150,000 coverage on it. I bought it when I was 24 years old and pay about $300/year for it. AM Best rates Primerica with an "A+ (superior)", which is the second highest rating (with A++ being the highest).

I also have a Roth IRA with Primerica and I put in $100/month into it. So, on average, I'm paying about $125/month to rent wealth while building wealth. Thats what life insurance is. All you do is renting wealth in case you die and your family will have something to use. In 30 years, hopefully no one is dependent on you and you don't have much debt left. So, you better have lots of money when you retire.

Answer 6

Most of the answers given to you were pretty much on target, though don't sell your local auto agent short ...though he may not be as well versed in life as he or she is on the property/casualty side of the business, they often form much better relationships than the average Life agent, who is forever being ridden by his or her boss to go out and right more premium. Relationship with the person doing this important work for you cannot be underestimated. By the same token, good life insurance agents will also value your business and stay on top of things for you, and often they are among the best of any in actually helping people in actual financial planning, including all aspects of it, life, health, disability, retirement, college education planning, etc.
I would take issue with those who feel that because you're young, just get term, or because you're single do not bother... Nothing could be more ( if you will excuse my attempt at trying to be "hip-hop" ) WHACK!
Check out all the best policies out there in terms of rate and coverage amounts...but check out variable life, universal life and whole life policies as well. If you don't have a lot of debts now, the premiums may not kill, and you may be able to be done with paying premiums by the time you are my age which is 45. In my experience I purchase the routine $100,000 term when I was young but I also chipped in an extra $100 month for a $100, 000 variable policy...Today that policy death benefit is almost $385,000 and the cash value is over $56,000 (I took some loans here and there after my divorce). My term policy is due to expire next year, and the rates will nearly triple. In my case I have children, and other policies i have purchased over the years so I will either dump the policy, renew with another company at alower rate or maybe even convert the policy to a whole life while I am still healthy.

Being young doesn't have to mean being care free...taking care of issues wisely and with some foresight will not only keep you out of financial difficulties, but there is no question that a single individual who his or her financial matters well in hand are a lot more attractive than those who are not...who knows, you may not be single in ten years, you might be married...which brings us to the topic of asset protection...but that is for another day.

Answer 7

This is hillarious. Most people's opinions on life insurance are WAY out dated. First of all, you should ONLY buy term insurance. This is because no matter how much money you funnel into a cash value policy you will NEVER EVER get it back without canceling the policy. In order to get it before that, they charge you interest, and if you don't pay it back, they just reduce your face amount. If you die with cash value still in the policy, the company pockets it. If you dont believe me, read your policy. Only buy term.

The only reason to need insurance for your whole life is if you didnt plan on retireing in the first place. In other words, you can cancel your life insurance policy once you have enough cash saved to cover an untimely death.

"Whats wrong with your life insurance" Great book for those that dont believe me.

Answer 8

Call Conseco (unless you are in Ohio then call me) *L*

If you want life insurance at your age Term life is the best.. but I have one phrase for you..

Return of Premium!!

It is just a hair more expensive then regular life insurance, but at the end of your term you get all the money you paid into it back (providing that you are still alive of course *L*)

You get the insurance you need without the worry of throwing your money away.. and a really cool thing is after your term is up your expenses will usually decrease so you can use all the premiums that you paid and put them into an annuity with a death benifit or a paid up whole life policy. That could cover all your life insurance needs permantly (unless of course you would like more then that option is always available as well)

I hope this helps, I know that insurance is very intimidating unless you know about it..

**blessings**

Answer 9

Buy a term life policy with 20 year or longer fixed premiums.

Buy from a company that has an A or better rating from AM Best or other insurance rating firms. If the company is not licensed to sell in New York state, you might want to look for another company. NY has the toughest insurance company licensing laws in the country.

Other than that shop for the lowest price.

Answer 10

You do not need a co-signer for life insurance. All you need is a 20 year term policy. This is perfect for someone your age to cover the basics if you were to pass away. Also make sure that you leave your dependent enough to provide them the lifestyle you wish for them. No need for millions, just enough to get a good start and not suffer because you passed early. Most Americans are severely underinsured in the life insurance department. Term insurance is very inexpensive and is all you need. What state are you in?

Answer 11

Your insurance needs - life and disability will likely change over your entire life. Whatever you decide, be sure to review your whole financial situation at least every 2-3 years and after major events like marriage, children, buying a house, switching jobs/careers.

Start with term insurance (get the kind that converts to a permanent policy without new medical underwriting) and get disability insurance.

Try calling one or more local agents who can listen to your particular situation.

Good Luck.