Is it a smart Idea to get a Life Insurance at the age of 21?

Question

I don't any dependents other than my dog, lol. I don't live a unhealthy life nor do I put myself in danger. I live an healthy normal life like any 21 year old. The reasom why I was consedering a Life Insurance was just in case. You never know death is not racist. I can affort the payments. I know they mention to me something about if nothing happends you get your money back at the end of the term.

Answer 1

1. If it is term, then it does not reduce the cost of getting life insurance later in life.

2. You do not get the premiums back.

3. If something does happen to you, what good is it?  You'll be dead and the dog cannot use the money.

Answer 2

Yes, you will likely qualify for very low rates.

Answer 3

The idea behind life insurance is to help dependents—usually human—cope with the sudden loss of income if you die prematurely. Since you do not have dependents other than your dog, you might want to hold off. At your age, life insurance premiums do not increase greatly from year to year. For example, according to the most recent survey by Insure.com, at age 30, you can get a 30-year term life insurance policy with a death benefit of $250,000 for $228 a year. You might be able to lock in a slightly lower rate now, but you would also be paying a premium for 5, 10, or 15 years for coverage you don’t really need.

Answer 4

Yes. As you get older the premiums go up.

Answer 5

if there is no-one depending on you financially, you should have enough coverage to take care of your debt and burial. that's the bare minimum that i would recommend and the the same coverage that i myself have. it seems a bit morbid at first but realize that it is a necessity. If you need anymore help feel free to contact me.

Answer 6

Thats weird I know a 21y/o Named Jacquelynn D. Hmm

Anyhow, Yes its a good Idea, it costs less the younger you are. Start now and you will have smaller payments than if you got insurance at 50.

Answer 7

Don't get Whole Life- its a rip off.  Get Term Life.  You should be able to get a good policy for under $20 per month.  Only necessary if you have someone dependent on you.

Answer 8

Sure, if you have a lot of assets to protect and you can afford the insurance. It's also a good investment

Answer 9

You have asked a good question, many young adults in your position don't think they need any life insurance.

Life insurance could be used to:

Pay off college loans, credit cards etc.

Pay for your funeral

Provide extra money for your parents who may have lost time at work caring for you in your last weeks/days.

Pay for any final medical expenses

For example if you were to die at this age it would probably be from an accident of some sort. If this were a car accident and spent weeks in the hospital. Even with health insurance you parents could be faced with thousands of dollars in medical bills. Lets say you were driving your parents car and someone else died your parents could be sued.

If you suffer from some terminal illness that last months or even years the financial strain could be enormous

There are many great reasons to buy life insurance and very few reasons not to.

For example a 25 year old could pay as little as $12.34 a month for a $100,000 life policy with level premiums for 30 years.

Answer 10

I just got whole life insurance today and I am 21. That means the date you purchase it, the rate never goes up. So the rate stays the same now as when you are 90 years old. Whole life insurance earns cash. When it's been there a while, say 10 or 20 years, you can take out the cash value. Depending on how much you put in each month, you could have a lot. And it's not taxed. So if you decide to buy a house at 30, then you can take out the cash, depending on your plan, it could be 10,000 or so. It really depends. But I think it's good. You can also add more money each month that goes straight to your cashvalue. Oh yea, I only have a dog too =] I think I got a 50,000 whole life for $20 a month. When I am out of college I will add more each month.

Answer 11

Well we sometimes do decisions that grown up adults wouldn't do and we feel mature through those actions but if you really think about it, only you can have the answer to your question. Ask yourself... do you need it? Are you putting your life to danger. what sort of life are you living? Student? If yes then don't worry, you'll just waste money on it, so no i would say it's not recommended. You're healthy, young.

Answer 12

It's important to realize that you never collect on a life insurance policy - cause you have to die first. So unless someone will suffer financially if you die, it's a waste of money (unless you would like someone to benefit financially from your death.) While it's true that rates are lower the younger you are, for most people, life insurance is most important when they're married and have dependent children.

However, if you get a 20 year term policy (usually the maximum term you can get) at 20 years old, it'll expire when you're 40. But if you only had children when you were 30 (for example), they'll still be dependent on you when you're 40 and getting a second policy at 40 will cost way, way more than the policy you got at 20. So, the best use of money for most people would be to wait until they're about to become parents even though the payments would be a bit more expensive at 30 (for example) than at 20 - so that they'll continue to have the coverage until their children have grown up and can manage on their own if need be.

And you did ask about LIFE insurance which does NOT normally cover expenses associated with accidents, illnesses and long-term disabilities - except insofar as it provides some money for any purpose - but only after you actually die. These are things which are covered by disability insurance - which is a completely different and much more complicated issue.

And last but not least, you should always name your estate as the beneficiary on your policy - not your current boyfriend for example. Make a will and update it as required. Otherwise, if you die and forgot to notify your insurance company of a beneficiary change, the wrong person may end up with the money.

Answer 13

are you married? do you have children?

are people (parents brothers and sisters) relying on you for support?

Answer 14

Well it's never a bad idea to get life insurance. I'm sure that your rate will be super low.