I am 18 years old, I don’t smoke and rareley drink. If it jhelps to know, I have never been diagnosed with any sort of disease. My grandfather did have prostate cancer, I’m not sure if that is relevant and my other grandparents both died of heart attacks in there 40s.
How much do you think would it cost for, whenever I die, a 1 Million dollar life insurance policy.
Thanks for all of the answers everyone, I didn’t expect so many good ones. Although I feel I’m still a little confused maybe I’ll consult an insurance agent, because I’m still uncertain which type of insurance is the best for me, I pretty much think that term life insurance is not good for me because even if I bought a 30 years term policy and I live past my 48th birthday I’ll get nothing from it.
newjerseyguy 1:07 pm on March 10, 2010
You are correct to buy it while young because it is cheaper. You can probably get a 30-year level term policy quite cheaply. Consult an independent insurance agent and get several quotes. Beware of the on-line insurance pitches. Go with a quality insurance company.
Insurance 1:08 pm on March 10, 2010
As a rule of thumb 60 months of your monthly salary is good start for the sum insured.
maybe this site will give you a good indication.
(this is only a general guide and may not be applicable to your actual needs)
http://www.einsuran.com
Term Life Insurance Quote
Hadley 1:08 pm on March 10, 2010
Hi Jason,
Yes, life insurance does cost less money if you purchase a policy when you are younger.
Life insurance rates increase based on your age. They also take into account the type of policy, amount of coverage, your health, your family’s health history, etc.
The least expensive type of life insurance is Term Life Insurance. Level term life insurance offers you coverage for 1-30 years. You may choose up to 30 years of term life insurance coverage. Your rates and your coverage remain the same for the entire term of your policy.
The quickest and easiest way to find out what your rate may be for a 30 year term life insurance policy for $1,000,000 of coverage may be to request free, no obligation quotes from a life insurance quote service online.
Efinancial has been providing quotes online for life insurance since 1999. You just fill out one easy form and they give you up to 12 life insurance quotes from top-rated companies in less than 1 minute. There’s no obligation.
To request your free quotes visit https://www.efinancial.com/smartquoteefc.aspx?source=389-707 If you do have any questions, they have a toll-free number you can call to answer any questions you have about your quotes or the plans.
I hope that helps! Best of luck to you Jason.
NoviceLido 1:08 pm on March 10, 2010
First, let me help you with your question:
1. Term Life Insurance – As the name implies, it is purchased for a term or a span of time. Common terms are 10 to 30 years, but you can even purchase term insurance for 1 year. Because term life insurance does expire, and because the insurance company offers a policy to people that they believe will survive that term, this is generally the cheapest type of life insurance to buy.
2. Whole Life Insurance – This is permanent life insurance which does not expire as long as the policy is in force (i.e. paid for). This type of life insurance builds a cash value, and because it covers a person for their whole life, it costs more.
3. Universal Life Insurance – This is also permanent life insurance, and also builds a cash value. It is also marketed as a sort of combo of insurance and savings plan because the life insurance and the cash account are "unbundled". Some people use life insurance as a savings or investment vehicle.
Now – YOU ARE RIGHT – Young and healthy people are cheaper to insure than older people! The fact that your grandparents had heart problems in their 40s can be relevant, but your parent’s health and yours will be considered more strongly. Perhaps when they were in the 40’s problems like high blood pressure were not detected, and medicine did not have ways to control them.
Anyway, it should be pretty cheap to buy insurance. If I were you I would combine a larger face value term policy with some permanent insurance.
Read More On Term VS Whole vs Universal Life Insurance
mbrcatz17 1:08 pm on March 10, 2010
Hell, you should go to Home Depot, and buy one of every power tool they have there. Those are cheaper now, then when you’re older, too, due to inflation and such.
Life insurance is a TOOL. If you have no GOAL for the insurance to satisfy, you’re throwing your money away.
Set the goal first. THEN shop around for the tool. Use a local, independent agent.
If you buy a whole life policy now (I can’t see you wanting a term policy, at 18, as it will expire before you’re 40), it’s probably going to cost you around $75 a month. It would pay out if you die, to someone else. OR, you could drop that $75 a month into an index fund, and have more than $60,000 by the time you’re 40. And by the time you’re 60, you’d have $891,000. And by the time you’re 70, it would be about $3,000,000. Which is probably when you’re going to die. And the payout is 3X what the payout on the life insurance policy is. AND, if you live, you can SPEND it on something. or, you could spend $2,000,000 and STILL give $1,000,000 to someone.
Via Dolorosa 1:08 pm on March 10, 2010
Jason,
Firstly, some insurance companies will only insure you for 10 times your income. Simply because insurance companies will not insure anyone who can gain financially from death..
While you are young you have 2 options..
One look at a whole life policy, that will gain cash value as you get older. I would reccomend this because it is cheap while you are young and will always be in place as long as you are paying your premium. And you can always transfer or "roll" this policy to a life paid up, and not pay on it.
Two, get 10 year term, until you get around 28 it is cheap and you may be able to get a large amount of coverage ( upto 250,000) without it hitting your pocketbook hard. At the age of 28, generally premiums go up for life products…and premiums are generally different from company to company.
goodluck!
Nancy L 1:08 pm on March 10, 2010
Yes it will be cheaper when you get lift insurance at a younger age, but there are so many different kind of life insurance depend on your need. The cheapest one is called Term Life which cover terms like 5, 10, 20, 30 years pay as you go. There are also other options like Universal Life and Whole Life which you get protection up to the age of 100 and it accumulates a cash value that you can use as emergency cash. If you need more detail you can email me directly at nancylanginsurance@hotmail.com and I can give you more info. I have been an insurance agency owner for over 6 years now! Hope this would help!
Nancy L.
ronwku 1:08 pm on March 10, 2010
Now is the right time to get a life insurance policy. You have many different options. Check out http://www.insurancecoveragesite.com for the various options you have. Best of luck.