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Originally Posted by poundwise
You may be right comparing 50K to 15K. That is, if one was going to go with 15K he/she may just as well go with 50K. However, if one wanted a simpler policy, just for burial expense, you can get a lower-priced alternative with coverage around 5K.
Thanks for the good point.
I must say, all things considered, I would not recommend life insurance to someone single, healthy, and in their 20s.
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Figure that anywhere from 35-80 or approx 3-7/mo is going to the company as a polcy fee and that at the age of under 30 cost/ 000 will be about .5 for a term and probably more like 2.5 or 3. Example for male age 25 in good health
5k whole life 62/yr
50 k 20 yr term 133/yr
250k 20 yr term 200/yr
This assume preferred but not best health. Term prices are lower with good health. But most companies do not do fully underwritten policies below 100k term so that is 1 reason why the value is higher face amounts. Companies will not spend money to underwrite 120/yr policies. Sp in this ex we get approx 5000% more coverage for 300% more premium and the terms here are convertible so if you do get married and your health changes then you can convert without additional ohysical requirements. It is up to the person whether the 200/yr opportunity cost plays for them in their long term planning and/or risk management.