Quote:
Originally Posted by Slava
I don't disagree with what everyone else is saying, but there is a problem with term insurance in two ways: (1) that the coverage increases as you're more likely to need it (assuming that you keep it long enough to see those renewals), and (2) it expires at 80. If you need/want coverage through that period then obviously you need something to cover you for your whole life. You can buy term-life coverage though and that is just pure insurance (no savings/dividends/investments) and that goes for your whole life, as the name would imply.
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The cost of coverages increases when you're more likely to die, not when you're more likely to need it. I'm just about to turn 30, have a mortgage, a baby, and a wife staying home with the baby. If I die today, they will need a material amount of money to replace my income. If I die in 25 years from now, the kid will be done school and out of the house, the house will be paid off, and my investments will be sufficient to pay for full retirement for me and my wife. At that point I won't NEED any life insurance at all, even though it's more likely that I'll actually die, which makes the coverage more expensive.
(It's probably worth adding here that the term I have I bought through Slava, and it was a great experience, so no offense is intended to him)