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.