Is life insurance worth having so young? Question | Cheap auto ...

Is life insurance worth having so young?

I?m almost 21 years old, junior in college, and have new car (owe ~$23,000 with my mother as a co-signer), but no other debts. I started a $50,000 life insurance plan with my insurance company( State Farm) and pay about $17/month. Is it truly worth getting a plan this young or should i just put that money in to a pre existing savings account?

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It?s not a bad idea since your mother is guaranteeing the car loan. It?s also not a bad idea to get insurance young if you know you?re going to need it (or want it) later on in life.

The only issue is that you bought a life insurance policy from a car insurance company. Companies know for car insurance are not known for competitive life insurance. They sell life insurance because as your car insurance carrier they know they?ll be one of your first (if not only) phone calls, because it?s convenient. So, why would they be competitive? For ~$120/year you could get (assuming you?re healthy) a $50,000 policy guaranteed to last until you were 121 years old at the same exact rate. Or, for $7 more per month you could upgrade that to $100,000.

Buy life insurance from a life insurance broker and not from a car insurance agent.
I think it?s great you?ve thought about life insurance at this young age. It?s not too early. In fact, age is your advantage here since life insurance companies offer the best rates to those who are young and healthy. Make sure you lock those rates in for the maximum 30 years, if you?ve got a term life insurance policy. I hope your policy has a renewability option. If you still need life insurance after the term period is over, a renewability option will allow you to renew your policy without having to prove insurability. That means you won?t have to go through a medical exam and you?ll be charged life insurance rates based on your age alone, excluding any health conditions you may have developed along the way.

Denise
Disclaimer: I work for AccuQuote and this is my personal opinion.
by R Glenn MatsenMember since:October 15, 2010Total points:565 (Level 2)Add Contact
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Two main factors to consider is ?what? kind of life policy did you buy? There typically is term life insurance, whole life insurance and Universal life insurance. Who might not be getting the best bang for your buck. Then the main factor is ?what? are you buying the insurance for? At this juncture it appears that no one is dependent upon you so other than locking in your insure-ability (in case you become uninsurable down the road due to injury, illness) there might not be a compelling reason to keep paying the premiums.
11 months ago
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Source: http://www.decadesilove.com/2012/07/24/is-life-insurance-worth-having-so-young-question/

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