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07-06-2010, 10:41 AM | #1 |
The Beautification of Car
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Do I need Life Insurance?
I'm 26, just got a 2 months old baby,. never thought about life insurance, then the other day a guy came in and tell me about life insurance.
My family will get 20K if something happen to me for about $26 dollars a month. Should i? or no. |
07-06-2010, 10:47 AM | #2 |
Canadetroiter
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$26 seems like a lot to pay for only $20k.
If you have a family, you probably should have life insurance. It should cover your funeral costs, plus all your debts, and have a little extra left over.
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07-06-2010, 11:49 AM | #3 |
WCOAST CANADIAN DRIVER!!!
Drives: 2010 Hatch 5DR - AUTO/AC Join Date: Jun 2010
Location: Chilliwack BC, Canada
Posts: 109
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I always remember what a friend in the business told me: "you can't afford not to have life insurance"
I think that amount is a bit high - you should shop around - ask your employer / banks / credit card companies - somebody will hook you up cheap - no worries! I pay $26.54 Canadian for about $50K Canadian in Term Life Insurance - and I also have 1 through my wife's work - as well as my own work - so I have an excess of $150K Canadian - seems excessive - but when I die - at least my wife and 2 kids will have some options - as well as it will helf offset our mortgage / funeral costs / kids education / etc |
07-06-2010, 12:04 PM | #4 |
The Beautification of Car
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thank you, will def shop around.
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07-06-2010, 12:52 PM | #5 |
Steals terrorist's lunch
Drives: 2007 Yaris Liftback Join Date: Mar 2007
Location: Reno, Nevada, USA
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If you have a family you should carry enough insurance to pay off your mortgage (if you have one) and any other debts (autos, revolving accounts, etc.), as well as cover your funeral costs and to get your kid(s) through college. It's also wise to provide for enough funding for your spouse to be able to supplement their income for a few months as they will miss lots of work in the event that you die, and/or may need to relocate.
As others have said that rate sounds quite high. As much as you were quoted I wonder if it's a term policy or an annuity rather than straight insurance, meaning it pays out at the end of a term if you haven't used it. If this is the case it's likely not what you need, and you should instead shop for straight insurance.
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07-06-2010, 01:26 PM | #6 |
Banned
Drives: '10 Yaris5drHB+99 4runner LTD Join Date: Sep 2009
Location: NE
Posts: 672
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single, no
you have a kid ? yes, you should have some type of insurance 26 a month for 20,000 = ripoff |
07-06-2010, 11:36 PM | #7 |
Joey
Drives: '14 Scion xD 5-speed Join Date: Oct 2008
Location: El Monte, Ca
Posts: 3,529
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As someone who used to work in the business a little while back, I would suggest you start with a term-life in the amount a little higher than your total mortgage (or if you rent, the amount of your yearly income after taxes). That's a great place to start for coverage amounts. If the premium is too high for you in that case, then a better angle would be to calculate your monthly budget and multiply it by 12 for your optimal benefit amount (as long as your responsible enough to keep your budget under your income, this should be more affordable). Ideally you should get a Universal Life or Whole Life policy so you have a chance of either 1) Whole life giving you continuous coverage without renewal, or 2) Universal Life giving you Whole Life plus a savings account built-in. It's your call.
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07-08-2010, 02:37 PM | #8 |
Drives: 2008 yaris, stripped, red Join Date: Jan 2009
Location: SE Texas
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wow...20k for 26 a month...i mean, i was paying 17 a month and getting 500k in the military. and that included hostile fire areas as well.
you must smoke or have some kinda disease...that will greatly reduce amount for amount paid. if you're really interested, check some higher end angencies. they're all over the net, just look into them and read all the fine print. there was one company i was interested in until i found out my bank (military and vet only bank) has all sorts of stuff and life insurance is one of them. i'm paying 20/mo for 450k...as a ex-smoker. i can also get an IRA or Roth IRA, CD's, bonds, stocks and all sorts of stuff, so check ur bank too. |
07-08-2010, 03:48 PM | #9 | |
Mr. 155 and climbing
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Quote:
+1,000,000
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07-08-2010, 09:02 PM | #10 |
Drives: 09' Meteorite liftback Join Date: Jul 2009
Location: Jeff,Indiana
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i have it for me and my husband for $200,000 on myself but its through my work so the highest i can get on him is 20,000 but it doesnt cost me that much. you should shop around. you should for sure get it if you have a child.
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