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Cheap Life Insurance?

Term Life Insurance & Whole Life Insurance Discussion

Cheap Life Insurance?

Postby akavya27 » Mon Apr 04, 2011 7:53 pm

So I need a life insurance, and I don't know what term, universal, and whole life insurance is. I don't really have a budget, just under 300 dollars per year I guess. By the way I'm 13.
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Cheap Life Insurance?

Postby diomasach46 » Mon Apr 04, 2011 7:54 pm

You're 13. 1. You don't need life insurance. No-one is dependent on you for income (I hope).
2. You cannot enter into a contract--you would have to be covered on you r parent's policy. Many companies cover all children for one low annual rate.
Each child does not need their own policy (they're trying to sell you whole life or cash value insurance, which is a rip-off). If you need to start saving and investing money, save and invest money. Do not bundle it with life insurance, which pays a death benefit.

All life is insurance is term--and then they add on things, call it different names. You pay (dearly) for these add-ons. You will always want term. Buy term, invest the difference. When you are older, get some life insurance. Good rule of thumb is 10 times annual income.
PS: I hope you are not sick and dying, and this is why you want life insurance at such a young age. Insurance is based on age & health, so you have to buy it before you get sick, not after. Good luck to you.
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Cheap Life Insurance?

Postby sean » Mon Apr 04, 2011 8:00 pm

You are 13 and probably you have to purchase life insurance with your parent as the policy owner and with you as the insured. This is because you are not making steady income and sustainability is important when purchasing a insurance policy. It is ok to purchase a life insurance at this age if you are looking at accumulating cash value. However, if coverage is your main concern, then probably you will want to include coverage for disability and critical illnesses. Lastly, the most basic coverage is actually hospitalisation coverage. Make sure you got that first.
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Cheap Life Insurance?

Postby jerric » Mon Apr 04, 2011 8:06 pm

Why do you need life insurance? Are you in bad health? Are you wealthy and others depend on your income? You have to have a need or why get life insurance?

The cheapest life insurance is term. It simply pays out if you die for any reason. But if you don't need it you don't buy it.
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