LIFE INSURANCE

[yitzgar]

Difference is, auto claims are much more common. Most young people think they won't die until they are very old

[ckmk47]

For less than the price of takeout, be sure your family can have supper if ch"v you're not there to provide for them.

[yuneeq]

Simple:
Food is essential for you while you are in this world.
LI is essential for your family when you are in the next world.
Since you don't know when that is going to happen, pay $40 a month so your family will have food (and other necessities) in case of an early departure.

Spend $500 a year even if you don’t have kids yet? Worst case scenario family will be there to support.  How much coverage you even getting for that price? And if someone gets LI at 22, what will it help if the person drops at 45 and kids needs to get married? Get a new plan at 42 for a much higher cost? So basically the first plan was a big waste of money.

[ckmk47]

Spend $500 a year even if you don’t have kids yet? Worst case scenario family will be there to support.  How much coverage you even getting for that price? And if someone gets LI at 22, what will it help if the person drops at 45 and kids needs to get married? Get a new plan at 42 for a much higher cost? So basically the first plan was a big waste of money.

I think for a healthy 22 yo, reasonable coverage is less than $200 a year.
Before kids, she can usually support herself or move back to her parents, but once there are kids, childcare eats into her salary.
The amount of coverage needs to be discussed, but breadwinning parents need to be insured.

[drosenberg88429]

I think for a healthy 22 yo, reasonable coverage is less than $200 a year.
Before kids, she can usually support herself or move back to her parents, but once there are kids, childcare eats into her salary.
The amount of coverage needs to be discussed, but breadwinning parents need to be insured.

500k is almost $200/yr, ime. Could be I didn't shop around enough, but don't think it gets much lower. Not sure if 500k is considered reasonable coverage. 1M is $300/yr.

[yeshivabucher]

500k is almost $200/yr, ime. Could be I didn't shop around enough, but don't think it gets much lower. Not sure if 500k is considered reasonable coverage. 1M is $300/yr.

just got me and my wife insurance both early 20 under 250/yr for 10yr 1m

[ExGingi]

just got me and my wife insurance both early 20 under 250/yr for 10yr 1m

EXCELLENT MOVE!

People in their early 20s shouldn't get long-term term plans IMO (except if it's to complement a permanent plan).

[AsherO]

just got me and my wife insurance both early 20 under 250/yr for 10yr 1m

You should check what 30 year term will cost you now, unless you expect to be able to afford WL (or have significant assets tucked away) in 10 years.

[yeshivabucher]

You should check what 30 year term will cost you now, unless you expect to be able to afford WL (or have significant assets tucked away) in 10 years.

theory explained to me was get 30 year after this term as opposed to getting 30 yr now

[ExGingi]

You should check what 30 year term will cost you now, unless you expect to be able to afford WL (or have significant assets tucked away) in 10 years.

-1

Do you really think a person in their early 20s that expects to have a nice Jewish family should have their insurance expire in their early 50s? 

Is it right to buy something temporary for 30 years, in which you pay more than it's value for the first 15 or so years, it's value for the next few years, and less than its value for the final years? All this when you are just starting off in life and really don't know where life will take you?

[ExGingi]

theory explained to me was get 30 year after this term as opposed to getting 30 yr now

More importantly, keep in mind that you have a short term solution, and know that you need to periodically review it, especially when things change (income increase, family grows, buy a house, move, etc.).

10 year term doesn't mean you need to keep it for 10 years, it's just usually the cheapest term out there. If you think that you might convert some of it down the road, 15 year term might make sense, where some (or all of it) might be converted (possibly piecemeal) over the next 15 years, while other term is bought to keep with changing situation.

[yeshivabucher]

More importantly, keep in mind that you have a short term solution, and know that you need to periodically review it, especially when things change (income increase, family grows, buy a house, move, etc.).

10 year term doesn't mean you need to keep it for 10 years, it's just usually the cheapest term out there. If you think that you might convert some of it down the road, 15 year term might make sense, where some (or all of it) might be converted (possibly piecemeal) over the next 15 years, while other term is bought to keep with changing situation.

was also brought up if conversion is needed it can be done

[Dan]

theory explained to me was get 30 year after this term as opposed to getting 30 yr now

And what if c"v you can't get insured after this term?
The hope is that after a 30 year term ends you'll have assets to support your family. After 10 is unlikely.

[yeshivabucher]

And what if c"v you can't get insured after this term?
The hope is that after a 30 year term ends you'll have assets to support your family. After 10 is unlikely.

convert into WL

[ExGingi]

And what if c"v you can't get insured after this term?
The hope is that after a 30 year term ends you'll have assets to support your family. After 10 is unlikely.

Hope isn't a strategy.

If one becomes uninsurable, conversion is an option (doesn't have to be WL, can be into UL, as long as the term is with a company that allows conversion into many different kinds of policies).

As mentioned, you don't get 10 year term intending to keep it for 10 years, you get it as a short term fix when you've just started out in life, and then review your options (possibly as frequently as annually, but more realistic every couple of years or whenever your situation changes).

[shapsam]

And what if c"v you can't get insured after this term?
The hope is that after a 30 year term ends you'll have assets to support your family. After 10 is unlikely.

If it's guaranteed convertible, you can still have insurance if uninsurable.

[skyguy918]

And what if c"v you can't get insured after this term?
The hope is that after a 30 year term ends you'll have assets to support your family. After 10 is unlikely.

Hope isn't a strategy.

The primary need for insurance - and this is what we're talking about when we talk about everyone needing to be insured for their family's sake - is the confluence of the possibility of losing one's income earning potential and one's family's dependence on said earning potential. At age 50, there's a lot less income earning potential remaining than at 20 or 30, and many of the dependencies have lessened. If someone's income is not sufficient to support their family, that's a separate problem, one that LI can't fix (due to underwriting limiting how much you can get).

[yos9694]

Do you really think a person in their early 20s that expects to have a nice Jewish family should have their insurance expire in their early 50s? 

Is it right to buy something temporary for 30 years, in which you pay more than it's value for the first 15 or so years, it's value for the next few years, and less than its value for the final years? All this when you are just starting off in life and really don't know where life will take you?

I think the answer is YES for exactly the reasons you gave (income increase, family grows, buy a house, move, etc.). Based on where the family is right now the 30 year term gives reasonable security for a reasonable price. When iy"h the family grows, income increases, etc. they will need more coverage and they should buy additional policies as appropriate. The original 30 year policy will do it's job for the original needs and any needs that come later would be covered by later policies.

In one word, laddering.

[ShimshonK]

And what if c"v you can't get insured after this term?
The hope is that after a 30 year term ends you'll have assets to support your family. After 10 is unlikely.

Right. I thought it is always advisable to take out a 30 year policy, and then take out a new 30 year some years later (when the policy should actually take you to retirement). Yes, it'll cost quite a bit more than taking a 10 year, but insurance is all about protecting yourself, and unfortunately, some people lose the option of taking out a new policy due to a health complication at some point during the first policy.

[aygart]

And what if c"v you can't get insured after this term?
The hope is that after a 30 year term ends you'll have assets to support your family. After 10 is unlikely.

Relying on a hope that someone will have adequate assets to provide for a family without a breadwinner is folly. The typical keren looks to raise close to a million dollars. What percentage have anything close to that saved at 55?