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Life insurance - worth taking out whole life policies as a healthy, married, financially secure 27-year old with no kids? At this point the only real value to whole life for me is building the cash value + having a consistent premium vs term where the premium will spike as I get older, but it just seems like a worse investment than paying off my student loans at this point. I guess what I'm looking for is whether it's generally worth it to pay out the butt for whole life to "futureproof" against high premiums later in life? You weren't kidding in the OP when you said life is one of the more complicated insurance types. EDIT: Sorry if this has been discussed before. Lord Of Texas fucked around with this message at 14:23 on Mar 27, 2013 |
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Mar 27, 2013 14:19
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Jastiger posted:Well it depends on what premiums you're looking at. Do you have significant debts that you would want paid off? No, we're considering using our savings to clear out my student loans, which would leave only a $7k car payment at 0.9 APR, with such a low interest rate is like borrowing money. quote:A family member or future kid you would want a large amount for? Do you have a job that supplies term life for you? What does your wife think? Yes, but term could fulfill that death need. My benefits are great but don't come with included term life. My wife is as clueless about life insurance as I am. quote:Lastly, what have you looked into so far? We've talked with Northwestern Mutual, State Farm, and Liberty Mutual and gotten recommendations from each of those agents. Northwestern Mutual recommended $1M in whole life on each of us, which would be around $1400 a month - seems excessive and they were very pushy about getting us on the expensive stuff. Our net income is around $8.5k/month (with a $1200 mortgage payment) so it's not like we couldn't afford it, but $1400 a month just seems excessive to let the insurance company invest our money for us, essentially. State Farm and Liberty agents both recommended $200k-$300k in term on each of us and maybe some in whole, which seems a lot more reasonable, but of course you run into the problem that term expires like you said. The line that Northwestern Mutual kept giving us was "use your good health now to lock in a premium", which makes sense, but I just don't know if that humungous price tag is worth it. Lord Of Texas fucked around with this message at 14:18 on Mar 28, 2013 |
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Mar 28, 2013 14:08
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