Should I do $500/month full life insurance?

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  • #93046 Reply

      No kids, not married, very low net worth. It seems to me like I would be better off investing that $500/month elsewhere. What would you do?

      #93047 Reply

        Low cost, affordable term policy and invest the rest. Any agent that tried to sell you life insurance as an investment is making huge commissions and doesn’t actually care about your future…. For the most part… or they are brain washed.

        10 years in the industry and I haven’t found a policy yet that actually beats the market long term!!

        #93048 Reply

          Absolutely not. What is there to insure? No offense but you would be way better off in the market index fund.

          #93049 Reply

            Run. Run as fast as you can from that life insurance sales person. You only need term, when and only when, you have dependants.

            Your instincts are spot on.

            You could take that 500 put in an index fund and get double the return that whole life is going to give you.

            Worth a look: Best life insurance companies for a 40-year-old non-smoker with a family?

            #93050 Reply

              Term life insurance might be a better deal as a single healthy person.

              If you live till maturity, you get your principal and interest, maybe tax benefits during that period.

              If you pass away during the term – atleast your funeral costs are not a burden on your next of kin.

              #93051 Reply

                How old are you? What plan What benefit does it provide you? It could be beneficial if it is designed correctly.

                #93052 Reply

                  If nobody is relying on you, you need nothing more than to cover a burial the state, and creditors will just take what they need.

                  #93053 Reply

                    I don’t think $500 is the amount you should be putting in, but I also wouldn’t recommend term. I would go with a permanent product but you can pay less than $500. Permanent insurance can be used for more than death benefit!

                    You can pull $ out of your perm insur to get long term care if you ever get sick or injured, you can build cash value to use to buy a house or if you have an emergency plus it’s tax free. And more. The death benefit is just another bonus! 1-5% of terms actually pay out, you are giving the insur company money for nothing most likely!

                    There’s a lot more to know before any recc’s should be made but term isn’t that great and $500 can be a lot for your situation based off what you said.

                    I see a lot of people get term because it’s cheap but then it ends one day and they have to reapply then it’s way to expensive or they are uninsurable and no longer will be accepted — and out of luck.

                    Whereas as long as you pay your perm insur payment you will always have it even if you become uninsurable one day! Hope this helps if you have any other Q’s let me know! Have a great night

                    Take a peek at: Is life insurance necessary for a child?

                    #93054 Reply

                      Shouldn’t need much insurance in your situation but could get small term policy for very little per month.

                      #93055 Reply

                        If you are referring to cash value whole life, then you would have to get an illustration based on the amount you’d contribute yearly. Your age is the largest factor. Average expectated return is 5% annually, which I think is low.

                        The advantage for me is, you never loose value, if you purchase from a mutual company. You do not pay taxes on gains.

                        I have setup policies for 3 of my children, which I will release to them at 15.

                        Inflnite banking.

                        #93056 Reply

                          Run from whoever is selling this to you. Fast. They have their commission in mind, not your well being – or they’re a blithering idiot. Neither is good.

                          A. You don’t need life insurance as no one else depends on your income.

                          B. If you did need life insurance, you’d want term and then invest the delta in the S&P and you’ll end up way better off.

                          Run like hell.

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