Which life insurance is best for me?

Question

This is for usa

I am 20, my husband is 22, we have no kids yet. We currently rent an apartment, plan on having a baby in a year or two and buying a house in the next 5-6 years.

We want a life insurance that is not to high monthly and will really help one another out if one of us were to die, becuase we dont really have family that would step in and take care of things, im thinking 100,000

Answer 1

You are to be commended for looking ahead and providing for your family. The least expensive option would be term life insurance for 10, 20, or 30 years. Since you are young and presumably in good health, you can get excellent rates. According to a survey by Insure.com, term life insurance rates are the lowest they have ever been. A 30-year old man or woman—the youngest age in the survey—can get a $250,000 policy for just $228 a year, or less than 20 dollars a month. Of course a $100,000 policy would cost less, but keep in mind that the idea is to replace the income of the deceased spouse for a period of years. You many not be earning much at 20 and 21 (then again you might), but your earning power will go up. $250,000 might seem like a lot now, but it won’t look like that large of a sum in 10 or 20 years.

To find the best solution, contact an insurance broker. A broker works with several insurance companies and can find the best rates and coverage for you. To find a qualified insurance broker, log on to a website like http://www.lifeinsurancewiz.com and fill out a form requesting a free quote. Your information will be sent to a broker in your area who will contact you. A consultation is free and there is no obligation, so give it a try!

Answer 2

I personally recommend getting a whole or universal life policy, you can keep your monthly payments the same or vary them, depending on which you choose, but you have this insurance building cash value your whole life. So, when your kids are all grown up and your mortgage is paid and you owe nothing, you can cash out your life insurance and use it to live the rest of your life as you want.

You are young now, no life insurance should cost you much.

Make sure you have an agent who shows you all your options because what is best for you today, may not be best for you in 2, 5, or 10 years. Being a young family you are going to want to consider down the road as well as your personal situation for today.

Answer 3

How much do you make annually- both combined? Do you owe anything to banks, creditors, credit cards? Do you want these paid for? Do you want the funeral paid for?

When you speak with an agent, make sure these are the questions that they ask. You will need to answer these along with others for the agent to do a comprehensive check on you both. This should be complimentary- you should not have to pay for this. Also, it should include ideas about retirement.

Getting back to your question: There are two types Whole life and Term life.

Whole life: As long as you pay the premiums each month whole life is good for your "whole life." The insurance company splits your premiums and places it into two separate places. 1 is called cost of insurance. In here, the money is spent on Annually renewable TERM insurance. Each year as you get older, the cost for the ART increases. 2 goes into savings. This is only if you get whole life.If you get Universal or Variable, your money is split and what would go to savings gets placed into mutual funds. But the company charges you fees and commissions for the agent that you make less than you could on your own.

Term life is just what it says- insurance for a termor a set period of years. I reccommend my clients to get term for as long as possible, make sure that they get the MOST coverage at this point in time, ONLY one policy for the entire household- both husband and wife as well as children, and to be sure that they get ONLY level term. This means that the premiums will NOT increase each year- it is set from the beginning.

Answer 4

#1: Never (ever) consider life insurance as an investment.
#2: Consider a 30 year term certain. You'll be covered for thirty years and your premium will never go up.
#3: You may also consider a 1 or 5 year renewable policy, but the premium goes up respectively.
#5: Whole Life is a Rip Off.... (sold to the ill informed)

Answer 5

get term insurance. It will give you the most amount of coverage for the lowest possible cost. Since you dont have kids or a house yet, it sounds like an income replacement scenario....do you need 100% of his income to support yourself if he died, or would you need a lesser percentage such as 80%....probably 10-15 times his income would be a start.

You can buy more coverage when you have the house and kids..the shorter the term length the lower the cost...10,15,20, and 30 years are available.

Answer 6

First off, do neither one of your jobs include life insurance? If so, factor that into your calculations (but it may certainly not be enough.) Also, once the baby is coming, it is appropriate to have insurance on both spouses even if one is not working (in your particular scenario).

In your situation, get term life. Do not muck about with whole life or 'universal' or any of the other variants that promise much and deliver little.

As for how much to get, the answer will clearly be different pre-baby and post-baby. Pre-baby, the amount to get is the amount that will allow the surviving spouse to survive without ruining his/her financial condition. That means enough to help pay the mortgage, for example, and any other significant financial commitments. While you're renting, those financial commitments are much smaller (possibly near-zero) and so are your financial needs.

Note that if you have other significant investments then those act to reduce the amount of insurance you need. Also, if the survivors are eligible for any other funds such as Social Security survivor's benefits, then that would also reduce what you need.

Also, even though it may offend one of you, if one of you is not working and there is no child, then the amount of insurance needed for the non-working spouse is very small. (The amount needed for the working spouse is large.)

Post-baby, it's all that plus enough to provide for HIGH QUALITY day care both in the case of one of you dying, and MUCH more than that in the case of BOTH of you dying and having the baby be financially supported through college. So that even in the event of one of you not working, the child care scenario means that even non-working spouses probably need insurance coverage -- because in the even of the nonworking spouse's death, the working spouse would still have to replace the child care services.

Since you haven't given enough details on what you plan to arrange in the (undoubtedly rare) case of both of you dying and the baby surviving, I can't offer any further specifics. But it DOES happen and you SHOULD prepare for it, both financially and in terms of who would be the child's guardian and who would care for it.

Answer 7

Consider "decreasing term" life insurance. It is the least expensive. "Term" life is the next least expensive.

Never think of life insurance as an "investment" vehicle, even tho the industry likes to sell those types of policies (whole life, etc). Save through IRAs and 410ks. Use life insurance to protect your family in the event of your death, not to make them rich.

And be aware that about 85% of life policies lapse without being cashed in. In other words, the company pockets your money 85% of the time without having to pay out a dime to your family.

Answer 8

I recommend one to try this web site where onel can compare quotes from different companies: http://INSURANCECOMPAREQUOTES.US/index.html?src=5YAcVAsgY99axx1

RE :Which life insurance is best for me?
This is for usa

I am 20, my husband is 22, we have no kids yet. We currently rent an apartment, plan on having a baby in a year or two and buying a house in the next 5-6 years.

We want a life insurance that is not to high monthly and will really help one another out if one of us were to die, becuase we dont really have family that would step in and take care of things, im thinking 100,000
Follow 13 answers

Answer 9

The least expensive life insurance coverage for someone your age is called Term Life Insurance.

Here is how term life insurance works:

Term life insurance offers life insurance protection for a specific number of years. It builds no cash value, you pay only for the life insurance. That's why term life is less expensive than permanent life insurance. So you can afford more protection for your loved ones.

Term life insurance lasts for a specific number of years, from 1-30 years. The most common term is 10 or 20 years.

Term life insurance policies pay the beneficiary the face amount of the life insurance policy if the insured person dies during the term of the policy. For example, a 15-year term life policy with a face amount of $250,000 would pay $250,000 to the beneficiary if the insured died any time during those 15 years.

Usually, term life costs less than permanent life insurance.

At the end of the policy term, the insured is no longer insured, and a death benefit is no longer paid. Some term life insurance policies are renewable, or can be converted to permanent life insurance.

Term Life Insurance Has Three Standard Features:

Level
Usually, the annual premium for the policy paid by the insured stays the same each year. The face amount of the policy also stays the same. Level term life insurance policies can usually last up to 30 years.

Convertible
Before the end of the term for the policy, the life insurance policy owner may be able to convert the term life insurance into a permanent life insurance policy. The owner usually has a specific number of years during the term life insurance policy to convert the policy. The premiums usually increase for the permanent life insurance.

Renewable
Term life insurance policies that are renewable offer the owner the option of renewing the life insurance policy at the end of the policy term, up to a specific age limit (usually age 65 or 70).

For example, a 15 year policy may be renewed for another 15 years. If the policy is renewed, a medical exam may be required. The term life insurance premium will usually increase when the policy is renewed.

You and your husband can compare free term life insurance quotes online through efinancial. They have provided free quotes online since 2001. You fill out one form and they give you up to 12 Instant Quotes for term life insurance from top-rated insurance companies. To request your free quotes visit https://www.efinancial.com/smartquoteefc.aspx?source=389-707

You can get instant life insurance quotes for you and your husband. You may want to consider level term life insurance for 30 years. That way you have protection until your future children are grown. Level term life insurance provides rates and coverage that remain the same each year for 30 years.

And, yes it is a good idea to consider life insurance for you and your husband in case something happens to one or the other of you.

I hope that helps! Best of luck to you and your husband. Happy New Year!!!

Answer 10

I recommend a D.I.M.E.S. worth
D- Death benefit (funeral cost)
I - Income replacements( how many years of income you want to replace)
M- Mortgage or Rent ( how many years do you want to pay down)
E- Expenses ( other debts, school loans, credit cards)
S- Savings( 3-6 months of your income to allow time to grieve)

Added together:

Subtract your insurance or saving and place then cover with life insurance
I tend to lean to level term and probably 30 year based on your ages.