Life Insurance Advice From Young People

I pay about $700 a month for a $300,000 whole life insurance coverage.

My whole life insurance is especially expensive because I am on a limited pay version, i.e., I pay this premium only for 15 years and then I am done. I get covered for life after that. I also have critical illness cover with that.

Whether the whole life and the limited pay version was financially a good idea, I cannot really say with certainty even now. I was in a very different financial and personal stage of life ten years ago, and the purchase made sense. Even at this point, I can see some benefits to me even though having to fork out $700 a month quite severely restricts my cash flow, so I cannot really regret it.

But what I really wanted to say was this:

I do not think 20-something, healthy and single people should be giving advice to their peers regarding not getting life insurance just for the reason that they are all young and healthy and have no dependents at that point in time. That advice is too fraught with the bias of youth and health to be truly neutral.

I can say this because I am 34 years old today, and due to serious health problems a couple of years back, I am not eligible to many types of insurance today. If I decide to up and have a kid tomorrow, my poor kid would up the creek without a paddle if something happens to me. That is, if I hadn’t gone and spent money on life insurance ten years ago when I was much younger and healthier.

So, by all means, discuss the pros and cons of various life insurance or other insurance packages. Bash whole life insurance to death if you want. Get cheaper packages if you can.  But if your instinct is to tell other young people not to get life insurance of any kind, at least wait until life has had a chance to get its claws into you before saying anything.

It is not called LIFE insurance for nothing.

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2 comments on “Life Insurance Advice From Young People

  1. Revanche says:

    Whoa, ARE there people saying NOT to get life insurance? I totally missed that and I’m just gonna be blunt in agreeing with you. That’s stupid. Don’t get it if you don’t want it for yourself but keep your mouth shut in advising other people, thanks very much.

    Precisely for the reasons you have detailed. You have no flipping clue what will happen over the course of the next day, much less the next few years and they very well may render you ineligible for coverage. And then what?

    Yes, if you’d like to take risks with your own lives, fine. But don’t mind other people’s businesses for them.

  2. My 15 HWW says:

    Hi,

    I do believe in getting life and disability income insurance. But I always remember that these insurance companies are not charities. They make a profit.

    Therefore, I prefer to BTITR so that I can self insure in due course. Premiums for Whole Life insurances are really expensive.

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