Life insurance is NOT an investment tool, any more than a pair of Prada heels is a good nail hitting tool.
It IS a financial tool, to prepare for certain contingencies IF YOU DIE.
So, set the FINANCIAL GOAL, and then find out what tool fits it best, at the least cost to you. Don't ruin a pair of Pradas over this.Is life insurance a good investment for a married couple with no children or mortgage?
According to many people life insurance is very boring as they are enable to figure out what exactly the term means. On the other hand it is something we should all consider especially if you have family or friends that depend on your income.
Source: http://financeinsurancetips.blogspot.com/
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If you love your spouse you will get life insurance. Just because you do not have kids does nto mean you should not be concerned about your immediate loved one.
source: http://www.abbalifeinsurance.com
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Learn the truth about life insurance: http://finance1o1.blogspot.com
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Honestly, the younger you are when you purchase Life Insurance, the better it is.
You could buy an Universal Life Insurance Policy. This is what I call ';Insurance as an Investment';. If you die, your Spouse and future family are taken care of; if you don't die, you could be enjoying a Tax Free Source of Income at retirement.
Let me explain.
You would pay a regular premium payment per month or per year. You would have an Investment Portion of your premium growing Tax-Deferred (No tax paid on the cash growing) inside your Insurance Policy. Then, when you want to retire, take your policy to a Bank and get a loan for up to 90% of the cash inside. You use the Cash inside your joint insurance policy as collateral, and now the Loan is a Tax Free Source of Income at Retirement (or earlier) in combination with things like a pension and RRSP's.
I do this every day for my clients...
Life insurance provides financial protection for your family if you die.
Whole life insurance may provide protection your entire life and build cash value within the policy; however, it costs much more than term life insurance, for someone your age.
Term life insurance can provide protection for 10, 15, 20 or 30 years, until your future kids are out of college, for example and the mortgage is paid off.
Term life offers the maximum amount of protection at the lowest cost for young families on a budget.
By saving on your life insurance costs, you can take other monies and place them in an interest-bearing account of mutual fund for long-term growth.
Here's how term lfie insurance works:
Term life insurance lasts for a specific number of years, usually 10, 15, 20 or 30 years. The most common terms are 10 years or 20 years.
Term life insurance policies pay the beneficiary the face amount of the life insurance policy if the insured person dies during the term of the policy. For example, a 15-year term life policy with a face amount of $250,000 would pay $250,000 to the beneficiary if the insured died any time during those 15 years.
Usually, term life insurance costs less than permanent life insurance.
At the end of the policy term, the insured is no longer insured, and a death benefit is no longer paid. Some term life insurance policies are renewable, or can be converted to permanent life insurance.
Term Life Insurance Has Three Standard Features:
Level
Usually, the annual premium for the policy paid by the insured stays the same each year. The face amount of the policy also stays the same. Level term life insurance policies can usually last up to 30 years.
Convertible
Before the end of the term for the policy, the life insurance policy owner may be able to convert the term life insurance into a permanent life insurance policy. The owner usually has a specific number of years during the term life insurance policy to convert the policy. The premiums usually increase for the permanent life insurance.
Renewable
Term life insurance policies that are renewable offer the owner the option of renewing the life insurance policy at the end of the policy term, up to a specific age limit (usually age 65 or 70).
For example, a 15 year policy may be renewed for another 15 years. If the policy is renewed, a medical exam may be required. The term life insurance premium will usually increase when the policy is renewed.
Make sure to compare life isnurance quotes from several companies before you buy, because rates may vary by up to 50% or more between insurance companies.
You can get free, no obligation quotes from efinancial at https://www.efinancial.com/smartquoteefc鈥?/a>
You fill out one form and they give you up to 12 instant quotes for term life insurance from top-rated insurance companies. You can get instant quotes for you and your wife. If you like your quotes, you can even apply online with no obligation to buy.
I hope that helps! Best of luck to you and your wife.
If you plan to get insurance, do it NOW before your rates go up, especially for Term Insurance. (As you get older, the higher the monthly rate)
I suggest some insurance just in case the unfortuante happens to cover medical bills, funeral costs and any other debt that may be outstanding.
Think of it this way, do you want your spouse to be burdened with expenses such as the above if one of you would pass away? What if you both pass together? WOuld you want your parents to be paying all this for you with no help?
Just my thoughts
only to the extent you want the other spouse provided for in the event something happens to either of you...but otherwise, no.
You don't have to get $500,000 but it's nice to at least leave your spouse something if something should God forbid happen to you. Remember, there is always probate crap and taxes which get really expensive really fast, thousands of dollars!
Your not going to be any younger than what you are now. and the older you are the more expencive it gets. i would think if your seriously concedering getting it you should even if right now you dont have a direct need. but when the time comes that you think you might need it the price would be alot higher.
Life insurance is very important, especially if you may have children. The sooner you do it, the lower your costs will be.
You may still need some. In case there are some ';final expenses'; that need to be unexpectedly paid. You probably don't need as much as someone who has a mortgage. Also, you may want to increase your coverage once you do have children. You want to be sure their education is secure, even if you aren't around.
It depends on your needs and goals. Are you both self-supporting? If so, then you only need enough insurance to cover the cost of a funeral a burial. If either of you depends on the other鈥檚 income to meet expenses, however, then you might need more. The idea is that you do not want your life turned upside down financially should you lose your spouse. You will have enough to deal with emotionally, if that were to happen. You would want enough life insurance to make up for the lost spouse鈥檚 income for a period of years鈥? to 7 is probably enough鈥攕o you can adjust to the loss without giving up your lifestyle. This will become even more important when you buy a home and have children, of course. The same principle will apply, but you will have to increase the amounts to cover raising the kids and paying for college. As for the investment option, it depends on your investment style. If you are disciplined and a savvy investor, you can probably do better by saving the difference between term life and whole life premiums and investing the money on your own. If you are not very good at saving, have no investment knowledge or interest, and want a simple, secure vehicle for saving with a small, guaranteed return, then you might consider a whole life policy.
life insurance is not an investment
if you want to invest money go with a 401K/mutual funds
c'mon people!
unless you are talking about annuities (which are also done by insurance co; then it is a different story and that you'll have to discuss with your insurance broker
Life insurance is an important part of your investment portfolio for several reasons, and the younger you start the better. First, it provides financial peace of mind in the event of an unforseen tragedy...ability to maintain your current lifestyle. Second, it's a great way to passively save money over time. Third, the cash value of your life insurance policy is an asset that you can leverage for other financial investments or starting a business down the road...you can borrow against it or use the cash value for collateral. Finally, it's the cheapest money you can buy. Consult a seasoned Insurance agent to discuss the plan that works best for your personal financial goals.
My husband and I have life insurance. We don't pay mortgage or have children, either, but we plan to have a family later. We're both in our very early 20's. The reason we started a life insurance plan so early is because the rates are alot lower and they stick with you as you grow and age. If I would've started the plan at age 18, I would have way lower payments right now. I suggest you do it as early as you can so that you get the best rates that you can =).
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