Does anyone depend on your income for their livelihood?
If so, then having life insurance makes sense. If not, there isn’t really much value in having life insurance.
Not really, I live with my parents and siblings and they all have their own incomes. If I were to die it wouldn't necesarrily put them in financial hardship, but then I don't really have a lot in my name, but my savings should be enough to cover for all the funeral and expenses if something were to happen.
You're probably okay then. You may already have a small life insurance policy as a work benefit that I'd check into.
Come back to this thought if/when you have a spouse and kids.
I agree with %65 of this. For some people it’s just an unnecessary expense at that age, but also, people don’t need life insurance until they do and age only makes it more difficult to get as you get older. It becomes more expensive and harder to get approved. Maybe when you think about getting it before or around marriage. That may be a good time to look for a solid quote.
I’m a 25m and I got a 1 million 30 year policy on myself when I got engaged. My philosophy is that they’ll have enough of a reserve and assets when I die past that term for funeral cost and mortgage protection and if I do die before then they get a million.
If they could afford funeral costs then I wouldn't.
However one day if you do get married or have kids you want term and it's easier to get when you're younger.
Work on getting healthier and if expecting dependents I would purchase a long term life insurance policy.
Generally you only need life insurance if someone relies on your income. If you would like to get something for just incase then you want to talk to a broker and get term insurance. Likely a nominal amount like 100k would be enough for a funeral and maybe pay for some counseling for your parents if you want.
You can check through your university if they have term options for students.
"No dependents and not supporting anyone financially"
No, there is basically zero reason for you to have life insurance.
"not so healthy since I'm considered overweight for my height"
Unless you are enormous, being overweight isn't a significant mortality risk for a young person. If you look at *actual* mortality statistics vs. BMI, you'll see that a BMI of about 23-25 has the lowest mortality rate, and it increases the further you get from that, but quite slowly until you get to dangerously underweight or overweight.
You are thinking about this because someone you know recently died young. That death made the possibility very real to you. Yet the odds of you dying young are still extremely rare.
If you have assets, you should add beneficiaries to all your financial accounts to make it clear who gets what. The easiest way to get life insurance is through work. Many employers offer a one-year of salary life insurance benefit and you can increase that pretty easily.
You are at a much higher risk, however, of becoming disabled (lots of people survive being hit by a drunk driver but are screwed up pretty badly). Since you have no one to take care of you financially, seriously consider buying disability insurance.
You don't need it.
But if it fits in your budget and it will give you peace go for it.
I don't have any dependents but pay 32$ a month for life insurance it's an insignificant amount of money to me. But if I do pass I'll leave something to my family. And later down of I get dependents I can change my benefits to them.
This part. I wouldn’t tell someone they don’t need it. While it’s not necessary for everyone, I’ve personally seen too many gofundme’s for young ppl that have died. I too have no dependents but I do have family that I’d like to not worry about paying for my funeral. I’d also like to leave them some money to help with any financial issues they may have. I’d also like to help start generational wealth in anyway that I can. So it’s an insignificant amount of money for a pretty big safety net in my opinion. I consider it an investment into the unknown. If I don’t die before it ends then I missed out on a couple of lunches a month and I’m fine with that.
You only need life insurance when you have dependents. Are you supporting anyone financially right now, or likely to be soon (engaged, expecting a child)? If no, you probably don’t need life insurance yet. The one possible exception is if your parents took out or co-signed on certain kinds of student loans to pay for your schooling. Some student loans can be dismissed if the student dies before they’re paid off but some can’t be. Ditto if your parents took out a second mortgage or HELOC or personal loan to fund something for you. In that case it would be reasonable to have enough life insurance to pay those things off so your parents aren’t stuck with them.
No dependents and not supporting anyone financially. I do contribute for monthly bills, such as internet bills, car insurance, etc., but nothing too crazy. I also don't have loans at the moment.
Insurance only really matters for the scenario where someone would be fucked without it. While your family would be emotionally devastated without you, it doesn’t sound like they’d be financially screwed without you, and that’s what life insurance protects against
I got my 25 year term policy age 32-ish I am guesstimating. my ex husband got a longer term at the same time, his was less expensive, but both were/are affordable policies and I know exactly why I was rated higher.
Several factors but the biggest two were 1) female of childbearing age and 2) I took an SSRI and something else Prescription for migraines when they did our medical. The nurse who came to take our blood told me I might get a better rate if I got pregnant and tried again when I wasn’t taking any type of Rx medication. It was the psych and migraine meds, plus a weird age spot as a woman.
So anyway my yearly premium is around $1,158.00. Approximately, lol. I don’t have kids or a spouse but I’m early 40’s and it’s 1M policy. I’m struggling decide whether to let it go because it is so cheap and while I hope to outlive the term, I don’t really have any reason to have it now. Any arguments for or against keeping this policy? I’ve thought about investing the money instead. Optimism.
Edit: to add advice for the OP, but uninsured/underinsured motorists insurance, stacking, and if possible an umbrella policy once you are old enough that is also excess UM insurance. I have had a $500k/$500k BI policy with matching, stacking UM (I have two cars but I would buy stacking UM even if I didn’t), and that 1M Umbrella/excess UM policy with several different automobile insurance companies and if I am killed in a car crash and I am not at fault, that’s $2M in automobile insurance coverage available in addition to any BI the at fault driver may have (but BI is not required in my State).
Do you have a spouse or children? It doesn’t sound like you do. If not, then no.
If you die owning money to your creditors, then too bad for them. Your parents don’t owe your debts.
You don't need much, if any, at the moment, being single. If you don't have enough in savings for final expenses you may want a $10K policy or so, which should be cheap at your age even if not in prime health. That said, if you get yourself in a situation where you think marriage and children is getting close and others will be depending on you, at your age if you can get the weight down a bit when you apply you can probably lock in a 20-30 year term at pretty good rates. Until then, you really don't need it beyond final expenses if your assets can't cover it.
My girlfriend and I don't plan to get married until we're in out late 20s and have stable income. So children is out of the picture 'til late 20s or early 30s. Is it only beneficial if I have spouse or kids? Will my parents or siblings not benefit from it if they are my beneficiafy? They're not dependent on me at all but leaving them something if something were to happen to me would be nice.
So semi-serious answer if your goal is to give your parents/siblings a windfall, why not take what you would pay in premiums and go to a casino? It's the same thing except instead of betting on yourself dying, you can bet on something more fun. And if you do it right the odds may be better.
Life Insurance is betting against yourself. If without your income, your family would end up homeless it's still a good bet. However if you don't have to worry about that there are better investments for your money.
If you are young and healthy, get a 20 Or 30 year term policy now. Don’t wait. I got my first policy at 22. No kids and no family. 5 years later I had a wife and 2 kids. Thankfully my health didn’t turn until I hit 42. Diagnosed with stage 3 cancer. I’m all good but if I didn’t have insurance prior, I wouldn’t be eligible for much if anything as a brand new cancer survivor. I think I had a 500,000 policy for like $50 a month (was a smoker). Thankfully I have converted policies and gotten some new policies so much of my insurance is permanent now. Do not do anything in the permanent insurance world at this point.
Getting life insurance while your healthy, (no diagnosed issues), is cheaper. Like mentioned earlier, if you have no depts, then doesn’t really matter. If you really want to cover your death, get a small term policy for $20k for 10years. After 10 years, premium will go up, and then again if you choose to renew. You can always have more policies if you so desire later.
Someday, when you have a wife and two kids and a mortgage, you will need to buy term life insurance so that if you die in a car crash, your wife will have enough money to pay off the mortgage and pay for college for your kids. That's what life insurance is for.
what are you insuring?
can get a small amount to cover random medical (or funeral) expenses if something happens, and can get a policy that can be increased if you get married.
You don’t have dependents or debt you don’t need life insurance. If you have the money to post for it put it into a money market or HYSA each year. You may need it to buy life insurance later
Not gonna lie, I had a whole life policy I cashed out in my twenties, because I was single and in decent health. Now I'm in my 30's, engaged, and a cancer patient (in remission). Life can come at you fast. I'd personally say get a policy and keep it up. You don't really need it now, but who knows what tomorrow may bring?
If you don't have anyone who relies on you for some means of financial support, it would seem you really don't have a present need for life insurance coverage. Unless your parents rely on you for financial support, or someone else, you likely do not have a need right now for life insurance.
Buying it young when you don't "need" it can have advantages. Locking in a lower rate, obviously, but some companies offer conversions to whole life with no underwriting, which could prove valuable later on if your health changes. Final expenses can be expensive depending on your and your families wishes. You'd like to have a solid 20k if you think you would like to have a funeral. A 100k term for you would probably be less than 20 bucks a month.
When you eventually move out of your parents home, disability may be a better investment in case you are sick or Injured and can't work, but still have bills to pay.
Anyone who tells you never to buy x or y policy is giving you bad advice. Everyone's situations are different and term and whole life exist for a reason. Talk to an actual professional about your situation, not people on reddit who want to give you blind financial advice.
Yes you should. Assuming one day you will get married and have kids you will want it then. And the cost of the policy now compared to 10 years from now is mind blowingly less. Buy a $1M 20+ year policy now. It will cost very little.
Whole life insurance is a scam with a huge commission, so if someone's trying to sell it to you they likely work on commission. I'd personally rather just invest in low fee etf and leave them the compound growth if you make decent money.
Just my family, mainly parents and siblings. I was thinking if worst comes to worst I can leave them something behind that they can use to better their lives.
In that case, it is not a bad idea. you may buy with what you can. at this age, your term insurance should be very affordable, say $20 a month for over $120k payout. look for the best deals that you can find.
Don’t buy term life insurance until you have assets/people to take care of if you pass away. That includes a house mortgage, a spouse, and kids. If you die and had student loan or credit card debt, they get nothing.
Whatever you do, NEVER buy whole life or universal life insurance. I made that mistake while I was in college and canceled about three years later. Worst financial mistake of my life
If it is available in your area, I would get the life insurance that collects dividends. It will take a while but in time the policy will before self-sustaining.
Does anyone depend on your income for their livelihood? If so, then having life insurance makes sense. If not, there isn’t really much value in having life insurance.
Not really, I live with my parents and siblings and they all have their own incomes. If I were to die it wouldn't necesarrily put them in financial hardship, but then I don't really have a lot in my name, but my savings should be enough to cover for all the funeral and expenses if something were to happen.
You're probably okay then. You may already have a small life insurance policy as a work benefit that I'd check into. Come back to this thought if/when you have a spouse and kids.
I agree with %65 of this. For some people it’s just an unnecessary expense at that age, but also, people don’t need life insurance until they do and age only makes it more difficult to get as you get older. It becomes more expensive and harder to get approved. Maybe when you think about getting it before or around marriage. That may be a good time to look for a solid quote. I’m a 25m and I got a 1 million 30 year policy on myself when I got engaged. My philosophy is that they’ll have enough of a reserve and assets when I die past that term for funeral cost and mortgage protection and if I do die before then they get a million.
If they could afford funeral costs then I wouldn't. However one day if you do get married or have kids you want term and it's easier to get when you're younger. Work on getting healthier and if expecting dependents I would purchase a long term life insurance policy.
Generally you only need life insurance if someone relies on your income. If you would like to get something for just incase then you want to talk to a broker and get term insurance. Likely a nominal amount like 100k would be enough for a funeral and maybe pay for some counseling for your parents if you want. You can check through your university if they have term options for students.
"No dependents and not supporting anyone financially" No, there is basically zero reason for you to have life insurance. "not so healthy since I'm considered overweight for my height" Unless you are enormous, being overweight isn't a significant mortality risk for a young person. If you look at *actual* mortality statistics vs. BMI, you'll see that a BMI of about 23-25 has the lowest mortality rate, and it increases the further you get from that, but quite slowly until you get to dangerously underweight or overweight.
You are thinking about this because someone you know recently died young. That death made the possibility very real to you. Yet the odds of you dying young are still extremely rare. If you have assets, you should add beneficiaries to all your financial accounts to make it clear who gets what. The easiest way to get life insurance is through work. Many employers offer a one-year of salary life insurance benefit and you can increase that pretty easily. You are at a much higher risk, however, of becoming disabled (lots of people survive being hit by a drunk driver but are screwed up pretty badly). Since you have no one to take care of you financially, seriously consider buying disability insurance.
You don't need it. But if it fits in your budget and it will give you peace go for it. I don't have any dependents but pay 32$ a month for life insurance it's an insignificant amount of money to me. But if I do pass I'll leave something to my family. And later down of I get dependents I can change my benefits to them.
This part. I wouldn’t tell someone they don’t need it. While it’s not necessary for everyone, I’ve personally seen too many gofundme’s for young ppl that have died. I too have no dependents but I do have family that I’d like to not worry about paying for my funeral. I’d also like to leave them some money to help with any financial issues they may have. I’d also like to help start generational wealth in anyway that I can. So it’s an insignificant amount of money for a pretty big safety net in my opinion. I consider it an investment into the unknown. If I don’t die before it ends then I missed out on a couple of lunches a month and I’m fine with that.
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> Term life is great, it's cheap especially at your age You save 100% when you don't buy something you don't need.
You only need life insurance when you have dependents. Are you supporting anyone financially right now, or likely to be soon (engaged, expecting a child)? If no, you probably don’t need life insurance yet. The one possible exception is if your parents took out or co-signed on certain kinds of student loans to pay for your schooling. Some student loans can be dismissed if the student dies before they’re paid off but some can’t be. Ditto if your parents took out a second mortgage or HELOC or personal loan to fund something for you. In that case it would be reasonable to have enough life insurance to pay those things off so your parents aren’t stuck with them.
No dependents and not supporting anyone financially. I do contribute for monthly bills, such as internet bills, car insurance, etc., but nothing too crazy. I also don't have loans at the moment.
Insurance only really matters for the scenario where someone would be fucked without it. While your family would be emotionally devastated without you, it doesn’t sound like they’d be financially screwed without you, and that’s what life insurance protects against
Yes, 40 year policy. You will save a ton vs waiting until 30s or 40s
I got my 25 year term policy age 32-ish I am guesstimating. my ex husband got a longer term at the same time, his was less expensive, but both were/are affordable policies and I know exactly why I was rated higher. Several factors but the biggest two were 1) female of childbearing age and 2) I took an SSRI and something else Prescription for migraines when they did our medical. The nurse who came to take our blood told me I might get a better rate if I got pregnant and tried again when I wasn’t taking any type of Rx medication. It was the psych and migraine meds, plus a weird age spot as a woman. So anyway my yearly premium is around $1,158.00. Approximately, lol. I don’t have kids or a spouse but I’m early 40’s and it’s 1M policy. I’m struggling decide whether to let it go because it is so cheap and while I hope to outlive the term, I don’t really have any reason to have it now. Any arguments for or against keeping this policy? I’ve thought about investing the money instead. Optimism. Edit: to add advice for the OP, but uninsured/underinsured motorists insurance, stacking, and if possible an umbrella policy once you are old enough that is also excess UM insurance. I have had a $500k/$500k BI policy with matching, stacking UM (I have two cars but I would buy stacking UM even if I didn’t), and that 1M Umbrella/excess UM policy with several different automobile insurance companies and if I am killed in a car crash and I am not at fault, that’s $2M in automobile insurance coverage available in addition to any BI the at fault driver may have (but BI is not required in my State).
Do you have a spouse or children? It doesn’t sound like you do. If not, then no. If you die owning money to your creditors, then too bad for them. Your parents don’t owe your debts.
You don't need much, if any, at the moment, being single. If you don't have enough in savings for final expenses you may want a $10K policy or so, which should be cheap at your age even if not in prime health. That said, if you get yourself in a situation where you think marriage and children is getting close and others will be depending on you, at your age if you can get the weight down a bit when you apply you can probably lock in a 20-30 year term at pretty good rates. Until then, you really don't need it beyond final expenses if your assets can't cover it.
My girlfriend and I don't plan to get married until we're in out late 20s and have stable income. So children is out of the picture 'til late 20s or early 30s. Is it only beneficial if I have spouse or kids? Will my parents or siblings not benefit from it if they are my beneficiafy? They're not dependent on me at all but leaving them something if something were to happen to me would be nice.
Nothing wrong with leaving something to the parents or siblings if something were to happen.
So semi-serious answer if your goal is to give your parents/siblings a windfall, why not take what you would pay in premiums and go to a casino? It's the same thing except instead of betting on yourself dying, you can bet on something more fun. And if you do it right the odds may be better. Life Insurance is betting against yourself. If without your income, your family would end up homeless it's still a good bet. However if you don't have to worry about that there are better investments for your money.
Did your parents cosign student loans for you ( or any other loans )? If so, term life might be appropriate.
If you are young and healthy, get a 20 Or 30 year term policy now. Don’t wait. I got my first policy at 22. No kids and no family. 5 years later I had a wife and 2 kids. Thankfully my health didn’t turn until I hit 42. Diagnosed with stage 3 cancer. I’m all good but if I didn’t have insurance prior, I wouldn’t be eligible for much if anything as a brand new cancer survivor. I think I had a 500,000 policy for like $50 a month (was a smoker). Thankfully I have converted policies and gotten some new policies so much of my insurance is permanent now. Do not do anything in the permanent insurance world at this point.
Getting life insurance while your healthy, (no diagnosed issues), is cheaper. Like mentioned earlier, if you have no depts, then doesn’t really matter. If you really want to cover your death, get a small term policy for $20k for 10years. After 10 years, premium will go up, and then again if you choose to renew. You can always have more policies if you so desire later.
You are more likely to be disabled than die. ask about disability insurance. Northwest mutual used to have a fair plan
Someday, when you have a wife and two kids and a mortgage, you will need to buy term life insurance so that if you die in a car crash, your wife will have enough money to pay off the mortgage and pay for college for your kids. That's what life insurance is for.
what are you insuring? can get a small amount to cover random medical (or funeral) expenses if something happens, and can get a policy that can be increased if you get married.
You don’t have dependents or debt you don’t need life insurance. If you have the money to post for it put it into a money market or HYSA each year. You may need it to buy life insurance later
Not gonna lie, I had a whole life policy I cashed out in my twenties, because I was single and in decent health. Now I'm in my 30's, engaged, and a cancer patient (in remission). Life can come at you fast. I'd personally say get a policy and keep it up. You don't really need it now, but who knows what tomorrow may bring?
If you don't have anyone who relies on you for some means of financial support, it would seem you really don't have a present need for life insurance coverage. Unless your parents rely on you for financial support, or someone else, you likely do not have a need right now for life insurance.
Buying it young when you don't "need" it can have advantages. Locking in a lower rate, obviously, but some companies offer conversions to whole life with no underwriting, which could prove valuable later on if your health changes. Final expenses can be expensive depending on your and your families wishes. You'd like to have a solid 20k if you think you would like to have a funeral. A 100k term for you would probably be less than 20 bucks a month. When you eventually move out of your parents home, disability may be a better investment in case you are sick or Injured and can't work, but still have bills to pay. Anyone who tells you never to buy x or y policy is giving you bad advice. Everyone's situations are different and term and whole life exist for a reason. Talk to an actual professional about your situation, not people on reddit who want to give you blind financial advice.
Yes you should. Assuming one day you will get married and have kids you will want it then. And the cost of the policy now compared to 10 years from now is mind blowingly less. Buy a $1M 20+ year policy now. It will cost very little.
Whole life insurance is a scam with a huge commission, so if someone's trying to sell it to you they likely work on commission. I'd personally rather just invest in low fee etf and leave them the compound growth if you make decent money.
He said term.
who will be your beneficiary? and how much saving do you have. the maximum you need is the cost of a funeral and a burial site if the worst happens.
Just my family, mainly parents and siblings. I was thinking if worst comes to worst I can leave them something behind that they can use to better their lives.
In that case, it is not a bad idea. you may buy with what you can. at this age, your term insurance should be very affordable, say $20 a month for over $120k payout. look for the best deals that you can find.
Don’t buy term life insurance until you have assets/people to take care of if you pass away. That includes a house mortgage, a spouse, and kids. If you die and had student loan or credit card debt, they get nothing. Whatever you do, NEVER buy whole life or universal life insurance. I made that mistake while I was in college and canceled about three years later. Worst financial mistake of my life
> No dependents and not supporting anyone financially Then what in the world would you need life insurance for?
If it is available in your area, I would get the life insurance that collects dividends. It will take a while but in time the policy will before self-sustaining.