Posted on: 04-08-11 23:43:44
Folks ,
I am planning to buy life term insurance - 20 yr term and was quite sure until recently when a friend of mine advised me against it telling me to invest these $50/ monthly to some investment which could yield returns 20 years down the line rather than draining them ... in life insurance .
Is this advice valid ? I do not have any health problems and no family history either ....... In case of accidental death viz in a crash , I assume that the auto insurance would take equal care to compensate .
Is Life Insurance really for people who are insecure rather than having historical benefits ?
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Fido.
I have sent you a PM.
It depends on your age, health condition and affordability. If you can afford more and age and health are not factors, go for whole life insurance as premium is comparatively low, otherwise term policy is good.
For me , I opted for 20 term insurance as I did not want to spend more on premiums, my premium for 200K Policy(for me and my wife) was around $450 per year,so draining of around $ 9000 in premiums. If I could have opted for investment plan I was draining more in totality(almost double) and for whole life premium affordability was the issue as I did not want to spend around $ 4000 per year in premiums(for 30 years )
Term life insurance is the simplest and the best way to get life insurance...In my opinion leave investments to 401K and other retirements accounts
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We will find a way or we will make one
Quote:
Originally posted by Fido
Folks ,
I am planning to buy life term insurance - 20 yr term and was quite sure until recently when a friend of mine advised me against it telling me to invest these $50/ monthly to some investment which could yield returns 20 years down the line rather than draining them ... in life insurance .
Is this advice valid ? I do not have any health problems and no family history either ....... In case of accidental death viz in a crash , I assume that the auto insurance would take equal care to compensate .
Is Life Insurance really for people who are insecure rather than having historical benefits ?
Don't compare life insurance with investment. Both have different objectives. When you are healthy, it is the best time to get life insurance because as we age and have health problems, premiums would be considerably higher then if you try to get life insurance. Even if you do not have health problems then also simply due to age premiums are going to be higher. There are innumerable scenarios where you car insurance is not going to kick in.
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I am not a proponent of life insurance..
Warren buffet the richest person in the world made his money on insurance..
Insurance in general is a very profitable business to be in, very rarely do u see insurance companies declare loses.
All that life insurance does is take care of ur feeling of insecurity..
So lets say u have a enough money for your family to self sustain in case u die or ur wife has a good job, then buying insurance is a waste..
Only time life insurance helps if there is one bread earner and the person has lot of debts which would put the family in undue hardship on death of the primary bread earner..
Quote:
Originally posted by Fido
Folks ,
I am planning to buy life term insurance - 20 yr term and was quite sure until recently when a friend of mine advised me against it telling me to invest these $50/ monthly to some investment which could yield returns 20 years down the line rather than draining them ... in life insurance .
Is this advice valid ? I do not have any health problems and no family history either ....... In case of accidental death viz in a crash , I assume that the auto insurance would take equal care to compensate .
Is Life Insurance really for people who are insecure rather than having historical benefits ?
Quote:
Originally posted by dudewheresmycar
All that life insurance does is take care of ur feeling of insecurity..
So lets say u have a enough money for your family to self sustain in case u die or ur wife has a good job, then buying insurance is a waste..
Only time life insurance helps if there is one bread earner and the person has lot of debts which would put the family in undue hardship on death of the primary bread earner..
Very valid points .
So it a cost one pays for removing the feeling of insecurity OR is there historical evidence enough that there s enough probability that death happens before 60 which requires one to take life insurance ??
In other words eating healthy & leading a healthy life would be a more important reason to sustain life and if one is doing that there may be some un forsee able reasons viz cancer , crash , earthquake etc which can be reasons for taking life insurance .........
Does life insurance prey on your feeling of insecurity or is a planned payment ??
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Fido.
