I’ve been hearing a lot about this as an additional investment vehicle. It sounds like it is relatively cheep to take out a large policy while you are still young. I feel like this investment is good to sell for the insurance company because its probably the longest holding period possible. Because you collect when you die. Maybe thats why financial advisors are pushing life insurance so hard on everyone lately. I’ve also heard from one of my friends who is a financial advisor, that life insurance will soon be required. Now is that different than the life insurance provided by your company, or would you need a privately funded one?
If you put into life insurance now, can you take out the money at any time?
As a young professional, should I be looking into this?
April 30th, 2009 at 2:59 pm
Paul,
I’m with you on this one. Cheapest is the TERM life insurance that your company offers you. Probably $4-8 / week-month. Go for it (IMHO). Best bang for your buck, while you’re still in your 20’s. No heath screen, no questions asked – great coverage.
Buying your OWN… that’s where it gets sticky. COST is a LOT more for the same coverage. BUT you do have the “Cash Surrender Value”.
You don’t get a great return, but it is a steady long-term investment & it is “insurance” in case something happens to you. If you’re looking for someone – I’ve got a guy that can hook you up.
-Craig
May 14th, 2009 at 1:50 am
I am fortunate that my employer provides us with life and health insurance as additional benefit when we become regular employees. The coverage is not that much but I am more than happy already because the premiums are paid by my employer and not taken from our take-home pay.
May 15th, 2009 at 10:19 am
My employer provides life and health too, but I’m wondering about all the personal life insurance salesmen out there. I feel like its a scam just to raise capitol for them and make commissions. They boast about 6% gains, and you can take out the money when ever you like.
I haven’t confirmed this with anyone that sells life insurance or anyone that has opened a policy.
Anyone out there have this?
June 1st, 2010 at 6:06 am
Remember to faithfully disclose all the facts in your application form. If your insurance agent fills out your application for you, be sure to read and understand the requirements carefully before signing the form. Otherwise, any non-disclosure of material fact can cause your policy to be void.