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I'm Planning On Getting Life Insurance Through State Farm. I'm 18. Is This Plan Good?

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I'm Planning On Getting Life Insurance Through State Farm. I'm 18. Is This Plan Good?

Postby Awan » Wed Oct 11, 2017 3:10 pm

Me being 18, they told me its the best time to get it because it's the cheapest I'll be able to. They quoted a 25,000 dollar plan at $22 a month, which will NEVER go up, even if I'm 84. Unless of course I upgrade to a 50,000 dollar plan. I have car insurance already with them, and it would make my car insurance go down by 4 bucks a month. Is all this good?
Awan
 
Posts: 50
Joined: Sat Apr 05, 2014 8:04 pm

I'm Planning On Getting Life Insurance Through State Farm. I'm 18. Is This Plan Good?

Postby Cornwallis » Thu Oct 12, 2017 6:53 am

What's the POINT of the insurance? What financial GOAL is it meeting for you?

Let's do some basic math here.
You're 18.
If you pay $22 a month to State Farm, and die at 78, they'll pay you $25,000.

Using a basic calculator, if you pay YOURSELF $22 a month, and put it in a mutual fund, if you are still alive at 78, you'll have $1,053,552.


Notice a difference in those two numbers? That's the PROFIT that State Farm is making, by selling you a whole life policy at the age of 18.
You're making them a million dollars.
They give you $25,000.

You're being sold.
If you NEED life insurance now - like if you're married and have kids that depend on you - this is not the plan for you, as it isn't enough COVERAGE.


Oh, and btw, if you bought a 20 year term policy, right now, for $250,000, it would cost you about $115 A YEAR.
10X the coverage, less than half the price.
Cornwallis
 
Posts: 44
Joined: Tue Apr 15, 2014 6:52 pm


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