Full disclosure - I used to be in the insurance industry in a previous life.
There are lots of arguments for and against insurance and types of insurance. I bought a permanent insurance plan when I worked in the industry and am very glad I did*. I have a policy which has grown to fill my needs as I've gotten older. It's gained value over time, I have built up equity within it and can use it as a retirement vehicle assuming I make it that long. I used my permanent plan and company benefits against my mortgage instead of getting the silly mortgage insurance. I also have riders in place should I get a disease, I am still able to purchase insurance should I need it.
I guess when I was 25 and in the industry I got a wake up call from visiting the 40 something year old guy who had $20k to his name and was expecting the government to feed him when he was old. As I'm now approaching my 40s I pat myself on the back for what I did back then.
*There are opinions on whether buying permanent or less expensive term insurance and investing the difference is a better option and I think that discussion is another topic. My view is this is best discussed with your agent and between the two of you, you can determine what's best for your needs and goals. I really don't think term insurance is something that fits a 25 year old's needs but then every situation is different.
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Originally Posted by Art Vandelay
My agent keeps pushing us to get Critical Illness insurance. Anyone have this? It seems way too expensive for my liking.
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I have it, just got it this year. It's not cheap, but the benefits are there. I look at it as another savings vehicle since you get everything back if you don't use it. If you do need to use it, well, that's what it's there for. There are a number of benefits to it and it's best to go through it all with your agent (or Slava) and have them explain all the positives and negatives so you can decide if it fits into what you can afford. I'm not sure where I'd put it on the hierarchy of financial needs but some form of illness/disability insurance is valuable.
As I learned "your four corners to a solid financial foundation are liquidity, retirement, disability, and life/taking care of your dependents."