Question : Is life insurance a good investment for a married couple with no children or mortgage?
My wife and I are considering purchasing life insurance but we aren't sure if it is the best investment for the money involved. Advice would be helpful. We do plan on having a family in the next few years and our ages are 30 y/o and 29 y/o.
- asked by nateobuf
All Answers:
Answer #1
only to the extent you want the other spouseprovided for in the event something happens toeither of you...but otherwise, no.
- answered by Nancy Kay
Answer #2
life insurance is not an investment if you want toinvest money go with a 401K/mutual funds c'monpeople!unless you are talking about annuities(which are also done by insurance co; then it is adifferent story and that you'll have to discusswith your insurance broker
- answered by mishkin
Answer #3
You may still need some. In case there are some"final expenses" that need to be unexpectedlypaid. You probably don't need as much as someonewho has a mortgage. Also, you may want toincrease your coverage once you do have children. You want to be sure their education is secure,even if you aren't around.
- answered by Angie
Answer #4
My husband and I have life insurance. We don'tpay mortgage or have children, either, but we planto have a family later. We're both in our veryearly 20's. The reason we started a lifeinsurance plan so early is because the rates arealot lower and they stick with you as you grow andage. If I would've started the plan at age 18, Iwould have way lower payments right now. Isuggest you do it as early as you can so that youget the best rates that you can =).
- answered by Luna
Answer #5
If you plan to get insurance, do it NOW beforeyour rates go up, especially for Term Insurance.(As you get older, the higher the monthly rate)Isuggest some insurance just in case theunfortuante happens to cover medical bills,funeral costs and any other debt that may beoutstanding.Think of it this way, do you want yourspouse to be burdened with expenses such as theabove if one of you would pass away? What if youboth pass together? WOuld you want your parentsto be paying all this for you with no help? Justmy thoughts
- answered by Jen
Answer #6
You don't have to get $500,000 but it's nice to atleast leave your spouse something if somethingshould God forbid happen to you. Remember, thereis always probate crap and taxes which get reallyexpensive really fast, thousands of dollars!
- answered by Peggy G
Answer #7
Life insurance is very important, especially ifyou may have children. The sooner you do it, thelower your costs will be.
- answered by newjerseyguy
Answer #8
Life insurance is NOT an investment tool, any morethan a pair of Prada heels is a good nail hittingtool. It IS a financial tool, to prepare forcertain contingencies IF YOU DIE. So, set theFINANCIAL GOAL, and then find out what tool fitsit best, at the least cost to you. Don't ruin apair of Pradas over this.
- answered by mbrcatz17
Answer #9
Honestly, the younger you are when you purchaseLife Insurance, the better it is. You could buy anUniversal Life Insurance Policy. This is what Icall "Insurance as an Investment". If you die,your Spouse and future family are taken care of;if you don't die, you could be enjoying a Tax FreeSource of Income at retirement. Let me explain.Youwould pay a regular premium payment per month orper year. You would have an Investment Portion ofyour premium growing Tax-Deferred (No tax paid onthe cash growing) inside your Insurance Policy.Then, when you want to retire, take your policy toa Bank and get a loan for up to 90% of the cashinside. You use the Cash inside your jointinsurance policy as collateral, and now the Loanis a Tax Free Source of Income at Retirement (orearlier) in combination with things like a pensionand RRSP's. I do this every day for my clients...
- answered by Joel Sopp
Answer #10
Life insurance is an important part of yourinvestment portfolio for several reasons, and theyounger you start the better. First, it providesfinancial peace of mind in the event of anunforseen tragedy...ability to maintain yourcurrent lifestyle. Second, it's a great way topassively save money over time. Third, the cashvalue of your life insurance policy is an assetthat you can leverage for other financialinvestments or starting a business down theroad...you can borrow against it or use the cashvalue for collateral. Finally, it's the cheapestmoney you can buy. Consult a seasoned Insuranceagent to discuss the plan that works best for yourpersonal financial goals.
- answered by 4Seasons
Answer #11
Life insurance provides financial protection foryour family if you die.Whole life insurance mayprovide protection your entire life and build cashvalue within the policy; however, it costs muchmore than term life insurance, for someone yourage.Term life insurance can provide protection for10, 15, 20 or 30 years, until your future kids areout of college, for example and the mortgage ispaid off.Term life offers the maximum amount ofprotection at the lowest cost for young familieson a budget.By saving on your life insurancecosts, you can take other monies and place them inan interest-bearing account of mutual fund forlong-term growth.Here's how term lfie insuranceworks:Term life insurance lasts for a specificnumber of years, usually 10, 15, 20 or 30 years.The most common terms are 10 years or 20years.Term life insurance policies pay thebeneficiary the face amount of the life insurancepolicy if the insured person dies during the termof the policy. For example, a 15-year term lifepolicy with a face amount of $250,000 would pay$250,000 to the beneficiary if the insured diedany time during those 15 years.Usually, term lifeinsurance costs less than permanent lifeinsurance.At the end of the policy term, theinsured is no longer insured, and a death benefitis no longer paid. Some term life insurancepolicies are renewable, or can be converted topermanent life insurance.Term Life Insurance HasThree Standard Features: LevelUsually, the annualpremium for the policy paid by the insured staysthe same each year. The face amount of the policyalso stays the same. Level term life insurancepolicies can usually last up to 30years.ConvertibleBefore the end of the term forthe policy, the life insurance policy owner may beable to convert the term life insurance into apermanent life insurance policy. The owner usuallyhas a specific number of years during the termlife insurance policy to convert the policy. Thepremiums usually increase for the permanent lifeinsurance.RenewableTerm life insurance policiesthat are renewable offer the owner the option ofrenewing the life insurance policy at the end ofthe policy term, up to a specific age limit(usually age 65 or 70).For example, a 15 yearpolicy may be renewed for another 15 years. If thepolicy is renewed, a medical exam may be required.The term life insurance premium will usuallyincrease when the policy is renewed.Make sure tocompare life isnurance quotes from severalcompanies before you buy, because rates may varyby up to 50% or more between insurancecompanies.You can get free, no obligation quotesfrom efinancial athttps://www.efinancial.com/smartquoteefc.aspx?source=389-707-1 You fill out one form and they giveyou up to 12 instant quotes for term lifeinsurance from top-rated insurance companies. Youcan get instant quotes for you and your wife. Ifyou like your quotes, you can even apply onlinewith no obligation to buy.I hope that helps! Bestof luck to you and your wife.
- answered by Hadley
Answer #12
Your not going to be any younger than what you arenow. and the older you are the more expencive itgets. i would think if your seriously concederinggetting it you should even if right now you donthave a direct need. but when the time comes thatyou think you might need it the price would bealot higher.
- answered by ben s
Answer #13
It depends on your needs and goals. Are you bothself-supporting? If so, then you only need enoughinsurance to cover the cost of a funeral a burial.If either of you depends on the other’s incometo meet expenses, however, then you might needmore. The idea is that you do not want your lifeturned upside down financially should you loseyour spouse. You will have enough to deal withemotionally, if that were to happen. You wouldwant enough life insurance to make up for the lostspouse’s income for a period of years—5 to 7is probably enough—so you can adjust to the losswithout giving up your lifestyle. This will becomeeven more important when you buy a home and havechildren, of course. The same principle willapply, but you will have to increase the amountsto cover raising the kids and paying for college.As for the investment option, it depends on yourinvestment style. If you are disciplined and asavvy investor, you can probably do better bysaving the difference between term life and wholelife premiums and investing the money on your own.If you are not very good at saving, have noinvestment knowledge or interest, and want asimple, secure vehicle for saving with a small,guaranteed return, then you might consider a wholelife policy.
- answered by Bradley S
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measure and fulfill your financial needs
