life insurance, is it worth getting?

Question

i was thinking about getting life insurance but was advised that it was not worth it . opinions please.

Answer 1

Only you can answer that question, this is one of many risk out there. The risk of dieing too soon. There is also the risk of disability, medical expenses, car accidents, homes that get burned, etc. Like any purchase decision you should gather the facts and make a decision. As in any buying decision if you don't get good advise or take bad advise you may end up making poor choices.

Answer 2

This would be something you need to ask yourself about.

I would ask you: Are there people in your life, who count on your paycheck each month? Could they make it each month without your salary? Do you own a house? Do you have kids? Are you married? Do you have a lot of debt? For any or all of these reasons, you MAY need insurance. These are general reasons why people get insurance.

Insurance is to help those you leave behind, not you. It helps them pay bills and do all possible to keep on an ordinary life track. It will help cover the funeral and send the kids to college. People do not like to think about death but most people do not have enough coverage or they pay too much. At the same time you look into insurance, you should get a complete wealth check up. Your agent should look at all aspects of your financial life, see what goals and dreams you have, and then match a plan to YOUR goals and dreams.

I recommend insurance based on the theory of decreasing responsibility- this means that being young, you do not have enough in the way of liquid assets to cover the loss of income due to the passing away of a member of the household. However, this is the time you begin to plan for the future, insurance is a necessary evil- you cannot afford the loss of a bread-winner. But as you have matured, your retirement is taken care of, you have more in the way of liquid assets, and the loss of income is less devastating. You cannot live your retirement years off of insurance money.

Answer 3

When you are young and only you are dependent upon your income, then you need disability insurance more than life insurance. As you acquire dependents who would be at a financial loss due to your death and subsequent lost income (mortgage, raising and educating children, etc) then you need to provide enough life insurance to replace your annual income for several years (between 5 and 10x is a rule depending upon your debt).

The catch 22 about not buying life insurance when you are younger, however, is that when you are older and need it you may not be as insurable. People develop medical conditions as they age that make getting insurance harder. Your employer may have a plan that allows increasing coverage upon marriage or birth (or adoption) of children without providing proof of good health and then you should get into the plan at that point. It's easier to decrease coverage later than to increase it.

Answer 4

If you are single, with no children, you may want to buy a small policy so that your family doesn't have to pay for your burial expenses.

If you have dependents, or a husband, who depends on your income, then, yes, you most definitely should get a good term life policy.

Get a 20-yr level term policy worth about 10 times your yearly income. That can provide a similar income, if invested, to what you earn.

Answer 5

Depends on what your GOAL is, and what the COST is. Set the goal, then see if there's a product that meets THAT GOAL at a reasonable cost.

When I had my first child, I took out life insurance which cost me about $200 a year for $250,000. It's a term policy - it should see my kids mostly grown and through college. I had my goal - seeing my kids through college - and the premium was affordable.

So, if it's going to cost you $10,000 a year for a $15,000 policy, no it's not worth it. But you need to SET THE GOAL FIRST.

Answer 6

You need life insurance if someone has an insurable interest in you.For example dependent children etc. However you should get level term. Ordinary life and other policies include investment/saving characteristics that you don't need for insurance.

Answer 7

the term life insurance is a misnomer. technically it is income protection. if you die your life isn't replaced. only the money that you where providing your dependent(s) is. if there is someone in your life that is dependent upon your income or a portion of it you need life insurance. in the event of your death the company you work for will not continue to send checks to your dependent(s). that is where life insurance steps in and replaces the income that you where providing for them. you will want enough to payoff all off your debts, your funeral, and 5 to 10 years of income. oh, and term is the best solution.

Answer 8

that totally depends. do you have children? dependents, spouse? term life may be worth it, but dont bother with universal, thats like, investing money into a bank account and not being able to touch it for 20 years. its more of a low yeilding intrest investment. if you want to be covered in the even of a sudden death, go term way more afforable.

Answer 9

I don't think it's worth it. My mother was paying life insurance for many years. It turned out it was a scam. Had she died she was not covered. Not just her. Many others that were with the same company. The person representing the company was keeping the money for herself.

Answer 10

No doubt the easiest way to get insurance quotes is on the web.
Why would you waste your time on the phone calling around?
the last time i needed quotes on insurance i used one of these comparison sites and it was great.
this is the site i used and it was quick like less than 5 mins.
The last thing I want to do is listen to elevator music while waiting for a salesman.
Anyway I got good quotes and ended up saving money so I was happy.
So shop around and compare quotes which is easy on the net.
Good starting point is at this site.

http://insurance.deal4-you.com

Good luck.