Benefit of buying life insurance if you are young?

[GIDAVIES]

What is the benefit of buying life insurance if you are young and not married and have no kids?

[jpg7n16]

You should only buy enough to cover debts and funeral expenses - if your assets aren't enough to cover them. If they are, don't bother.

What you describe is one of the few scenarios where people likely don't need life insurance.


Unless you have a family history of some early onset disease or something. Then get a policy early while you'd still qualify.

[disneysteve]

You should only buy enough to cover debts and funeral expenses

What you describe is one of the few scenarios where people likely don't need life insurance.

The purpose of life insurance is to replace lost income for those who are financially dependent on that income. If you are single and childless, chances are nobody is financially dependent on you unless, perhaps, you are supporting an elderly parent.

jpg, why would someone need insurance to cover their debts? If they owe the money on their own without any other cosigner, nobody else would be responsible to pay those debts upon their death.

[jpg7n16]

jpg, why would someone need insurance to cover their debts? If they owe the money on their own without any other cosigner, nobody else would be responsible to pay those debts upon their death.

I personally feel that we are responsible to whoever we borrowed from.

So if I borrowed $20k from you, I feel that you deserve to be repaid if I die early.

So I would have insurance to cover the difference between my debts and assets, if and only if there was one. To me, it's more about doing what I feel is the right thing.



For me personally - right now, I could use my 401k and investment account to easily satisfy my remaining debts on school loans - which I am intentionally not repaying because they charge 2.5%, and I'm earning more on investments than that. So I do not need life insurance for any reason. I have it through work though, cause it's free (1x salary).

[dczech09]

I myself am 23, have no kids, and am single. I bought additional death benefit on my life insurance through my employer in order to have enough coverage to cover my debts in the event of my untimely death. The reason why is because my father is a cosigner and the last I want to do is leave him responsible for my student loans and car.

As far as benefits for buying when young? You generally get lower rates as long as you are in good health, don't smoke, etc. Typically you get employer purchased term life from your employer as a benefit and then they allow you to buy additional coverage. I bought $50,000 for like $3.00 per month; its just slightly more than identity theft protection insurance.

Some agents will argue that buying whole life when you're young is smart as this will allow you to spread premiums over a longer period of time, but it still does not change the fact that whole life is crap. I would recommend purchasing term life if and only if you have debts that are guaranteed by your parent, or someone is dependent on your income. If you're debt free, don't bother with it.

[littleroc02us]

What is the benefit of buying life insurance if you are young and not married and have no kids?

There isn't one, because if you die (hope that doesn't happen)there isn't anyone relying on your income to eat, go to school and make payments on your house.

[Ana72]

This is a very important topic for teens. Hopefully I could read more insights from other people about this thread.

[Debt Vigilante]

I am 27 and I have life insurance to cover all my debt plus about 5 years of income. My wife is in grad school, but will have a very good job when she gets out so I figure 5 years of income should be enough for her if I were to go.

[adyboy]

Well the sooner you start in insurance, the better it is. Your insurance premiums will increase so the older you get, the more life insurance is going to cost you.
Also this more important if you have a high risk ( say a family history of heart trouble etc ) which will make it impossible for you get it later on. Also, now you might be single and in good health but as much as we think, it never lasts. Also point to keep in mind is if you are buying term insurance, then you should ask about a renewability provision so that you can renew your policy instead of going the whole nine yards again.

[rizzmo]

Starting younger with insurance is better, assuming that you actually need insurance. If:

1. You are not supporting anyone financially.
2. No one is liable for you debts i.e. no one has cosigned for you.
3. Your assets can cover you funeral costs.

Then you do not need insurance. Paying years of slightly lower premiums for something you don't need is wasted money. Why not grow your investments vs. paying the premium amount. It is highly likely that, eventually, we will all need life insurance, but I say cross that bridge when you come to it. I think we all have or no of someone's uncle or aunt who never married, had no kids, etcetera. did these people plan for that maybe, maybe-not but they would have burned a lot of money paying lower premiums for something then ended up never needing.

Life insurance to cover personal debts is a matter of conscious. I think if creditors have to take a loss on your death that is simply a cost of doing business for them. A debtors untimely death is always a risk and knowing this they still agreed to lend you the money at the agreed upon interest rate and terms. You are not cheating them, I mean who plans to be hit by a bus. I have life insurance because my wife is currently dependent on my income, and if I were to pass she could not make the payments on home and student loans our only debts, thus we have taken enough to pay off those debts. If I was not married, then I would not have life insurance.