(Closed) Life Insurance

posted 9 years ago in Relationships
Post # 3
Member
2324 posts
Buzzing bee
  • Wedding: April 2018

I think we have whole life…it’s done through my husband’s firm. They pay for 2M and we pay for an extra 2M ourselves. I don’t know much about insurance, but can you pay for term {it’s cheaper right?} until you get a job that might provide it? Or when you have a job and some extra money you could change to whole life?

Post # 4
Member
398 posts
Helper bee
  • Wedding: February 2009

I personally have 2 life insurance policies. The first is provided by my employer through Guardian (http://www.guardianlife.com/solutions/product_portfolio/life_insurance.html).

The second my parents purchased for me when I was born.  To be honest I don’t know who it is through, but its about $89/year. I will hopefully learn more about it once it is transferred into my name (now that I am well over 21 and married) 😉

Good Luck!

Post # 5
Member
429 posts
Helper bee
  • Wedding: December 2008

What I have heard is that all in all, your money goes further with a term policy, unless you are counting on pulling money out in advance. The whole life DOES give you the option of pulling the money out, but if you’re just having the policy for the death benefits, then that "extra" that you’ve been paying in goes away once the death occurs. Of course, this was not from a financial or insurance related source, so I’d do more research, but yeah, term is completely acceptable for a period of time if you think you can’t swing the whole life.

Post # 6
Member
2208 posts
Buzzing bee
  • Wedding: July 2010

Generally, term is best for uncomplicated financial situations. While whole life forces savings, but you can usually do much better putting the difference in a 401k or a Roth account. Definitely don’t get whole life if you aren’t maxing out your savings in both of these vehicles first (for reals). The reason is that term is cheap and handles exactly what you need: insurance for your or your husbands unexpected death. Whole life on the other hand has added benefits, but it is a high cost (equalling only moderate return) form of retirement savings. Typically it is only necessary for people with complicated (meaning they are wealthy) estate planning needs.

Here is a more detailed explanation: http://www.smartmoney.com/personal-finance/insurance/term-or-whole-life-8011/

 

Because term life insurance is so simple, you can basically just go for the cheapest plan. Check out if your alumni association or the insurer of your car/house/apartment has a good deal for you. I have small policies for the benefit of my little brother from my car insurer and my alumni association (Go Buckeyes!). VERY cheap.

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