What is the best age to buy investment linked insurance?

Question

I've been told to buy insurance by parents and I'm 24. Should I go ahead? I'm not sick before and I'd never been hospitalized. I'm just all-good at this moment.

Answer 1

hi iam vijay ur age is is the right age to invest in the linked insurance if u want any more information mail me [e-mail]

Answer 2

I would buy a policy like the one you just described with level cost of insurance (its an option on the policy) as life insurance will never be cheaper for you to buy than it is right now and eventually you will need it. (if you don't already- if you are married or have kids)

Buy $200,000 with anoption to buy more in the future built in as a rider. "overfund" the plan a little bit as well. ie. If premium is $50 per month, put in $75 per month. Make sure the investment selection is pure equity to maximize your tax sheltered growth.

IMPORTANT: if you have ANY intention of pillaging this policy for fast cash in the future (to buy a house, big screen tv) or your spending habits are bad, DO NOT buiy this plan, it would be a total waste. In that case, just buy term insurance.

Answer 3

You are looking for a cash value type policy.  It is a better idea to separate them.  You can get a better rate of return on your investment, and if you die before a term policy is up, your benefices get both.  You also get more freedom to choose where the money goes and don't have to borrow the money.

Very few cash value policies allow that unless you pay more per month.