What type of life insurance should i get while i am very young in order to save big when i get old ?

Answer 1

Life insurance with cash value don't pay out cash value when you die! They say its a good way to build savings! How is that so if you lose it all and it doesn't go to anyone when you die? People say you can borrow it. Why do I want to borrow my own money that I paid for? Cash value = scams!

Answer 2

Whole life. With a whole life policy, the insurance company invests your premiums, and your policy builds cash value. A whole life policy will never expire, as long as you pay your premiums.

Term life covers you for a limited amount of time—the term. The premiums you pay are gone when the term is up. You have purchased security for a certain number of years, but that is all. You will never see that money again. If you live 20 years plus 1 day, you will still be covered by whole life—but not by a 20-year term policy. If you live to 80, you will still be covered by whole life. Your cash value will accumulate, and the money can be used to pay the premiums, to keep the policy in force. You can also borrow against the cash value. Whole life costs more because of these features.

Some people say to save money with term life insurance and then invest the savings in something with a bigger return than whole life offers. This is sound in theory, but the question is: Would you actually do that with the money you save? And if so, what would you invest in with such a small amount of money? Do you have the knowledge to pick an investment that will outperform a whole life policy? Whole life is guaranteed to build cash value over your lifetime. Good luck!

Answer 3

Rule #1: Life Insurance is not an "Investment". Anyone telling you so could be violating the law (in some states).

Best bet:
I don't know you.... so a recommendation on my part would be stupid, at best.

What we did;
We purchased 30 year term policies. We have a guaranteed rate for thirty years (works for us). By the time it expires we'll be over 65 and will no longer need Life Insurance (house paid off.. etc.). The difference between that rate and what a whole life policy is being invested in a couple of good Mutual Funds (low fees... much cheaper than any funds offered by the insurance companies).

Best of luck!

Answer 4

I think that would be whole life insurance since it builds cash value, but most sites I've read advise against it. I'm still learning this myself but it seems like the way to go is to get term insurance (for maybe 30 years if you're young) and then invest the savings instead. Term is cheaper but doesn't build cash value.

Answer 5

Save big on WHAT?

You know, if you buy a table saw now at Home Depot, it will be cheaper than buying in in 30 years. Fat lot of good it will do you, though, if you don't have a USE for a table saw.

Insurance is a TOOL. It's meant to FILL A NEED. Define the need FIRST, then find the product.

Buying it just for the sake of buying it is NOT a good financial decision. Set goals.

Answer 6

One needs maximum protection when one is raising a family, has a mortgage, any debts.
These are the things that one does not want to leave behind for a family.
The other consideration is ample income to provide for the spouse and children and education.

Term is the best and cheapest way to accomplish this.
The savings is your nest egg, available when needed, earning additional income for retirement.

Insurance salesmen make high commissions on Whole Life.

Answer 7

Do you need insurance? Who will need money should you die? Who is depending on you for support right now?

If there is no one who is going to be in need of money should you die then insurance is not for you. There is very little advantage to getting insurance before you need it.

Take the money you would spend on insurance and invest it in stocks/bonds/mutual funds. If you invest well you can find your self in a position called self insured and not needing life insurance.

Whole life insurance and its varies spin-offs are for older people who need insurance or for people with out the discipline to save/invest and purchasing term insurance.

Whole life is a very, very low yield investment.....unless you die early.

Answer 8

Buy term, but make sure it is "convertible". Why? Because your health may change and you may not medically qualify in the future.

Most term policy premiums are very low initially but over time become quite costly. Those that are healthy replace the now expensive term policy with cheaper term that they medically qualfy for. Those that don't medically qualify are without options unless the policy is convertible without medical qualification.

Bottom line. Buy today the face amount you will need in the future. Buy term today ... with conversion options for the future.

Answer 9

I would get term and make sure you get enough. You don't want whole life insurance in my opinion. Do better things with your money.

This copied and pasted from Suze Orman Site:
SUZE SAYS
I HATE WHOLE LIFE INSURANCE
I HATE UNIVERSAL LIFE INSURANCE
I HATE VARIABLE LIFE INSURANCE
THE ONLY TYPE I LIKE – FOR THE PURPOSES FOR INSURING YOUR LIFE – IS TERM INSURANCE!

Hope this helps you know what to do with your hard earned money.

Answer 10

Hi Picardi.

Hmmm... i see the need for insurance advocacy basing on the current replies from your query.

My friends, Life Insurance is something you "Buy when you Don't Need it." Most importantly, its something you "Can't Buy when you Need it."
Even the famous Roberto Kiyosaki got this advice from his Rich Dad.

To appreciate it you have to know how it "Works for you."

In achieving you life's dreams you walk the path of life. Like the line from a poem " When I was one and twenty," insurance has many ways working for you.

"When i was one and twenty and old man said to me..."

The day we receive our salary is the day we start to spend our money then save, spend, save, and sometimes get into debt. Some we save in the bank. Some wisely saves in financial tools that earns BIGGER than bank rates, like... guess what?...tadadada! INSURANCE! ;)
Is this true? Absolutely!

Now youth of "one and twenty" has its way of living life now without thinking of the future. Therein lies its strength and its weakness.

True in our youth, our strengths are: we are healthy, we party all night, buy the latest gadgets, indulge in fashion trends, and as most call center people at this young age and stage do, indulge in our daily doses of mocha frapuccino and cigarette lights as we text in the our brand new Nokia N95 or Ericsson 850i Cybershot and maximize the credit limit of four to five credit cards. And truly amazingly say, "This is life"

And therein lies the weakness... For in this stage we expose ourselves to the RISKS. Far be it in our minds to even know the concept of RISK MANAGEMENT.

Risk of losing our Job, Risking of losing our Health, Risk of not only depleting our bank accounts, but closing it as well because of Unpaid Credit Card Debts, Risk of losing our Money. And if there is no money, there is no... Honey! Yes! We Risk having our special someone leave us. There goes our Dreams... There goes our life. Risks of the youth.

So what tool can we use? what step can we take? Guess what? ta da da da... Insurance. Of course!

With insurance, we learn to manage the risks involved.
We learn to Discipline ourselves with saving our Hard earned money and have them earn Bigger, Double, than bank rates.

With these insurance savings, you can achieve our dreams.

Let your friends drool with envy when they see you texting and watching youtube in the latest Iphones cuz you have saved for it.

Let your friends gush with giggles and excitement as you walk in the carpeted beautifully decorated flowered aisle in the church as you walk to the altar in your dream wedding cuz you have saved for it.

Let your Mother-in-law lavish praise you for enrolling your kid in the latest, computer assisted, one-on-one education in the best montessori in your neighborhood, while you smile with content because you have saved for it.

Let your friends gawk with awe while you wave and show your successful smile as you park your brand new car in the latest subdivision because you have saved for it.

Achieving your dreams requires your dedication, open mindedness, and learning to manage risks, while enjoying life. Insurance can help you achieve this and more.

Go for Insurance Endowment programs Picardi, they give interest on investment, dividends on investment, maturity value, even medical benefits, life and accidental insurance, and to top it all, over and above all these benefits, everything that you invested will be given back to you.

Big Savings for you. Not only when you grow old, but with proper planning, even for your future generation.

Let your money through insurance work for you. With proper planning and right actions, you will achieve your dreams faster. (",)