Life Insurance - worth getting it?

[Phanuthier]

Anybody who could answer, would be greatly appreciated. I'm currently 24 about to turn 25, and my insurance writer (State Farm) keeps pushing me to get life insurance and rates go up when I turn 25. I currently have no dependents, but sometime in my life I'd like to have a family. I'm a Canadian citizen, but living in the USA and likely won't return to Canada. Future employers (if all goes according to plan) would be big high-tech companies like Intel, Texas Instrument, National Semiconductor... I'll probably be in that for a decade before moving off to something else, probably independent of a big company.

I'm told some companies offer employees life insurance as a part of their employee benefits. Now given the industries I'll probably be in, my immigration status and future (family) go perspectives... is it worth buying life insurance?

Thanks in advance

[speede5]

It's always easier to get it when you are young and healthy. Once you start seeing doctors for issues you will need to disclose these and it will affect your rates and eligibility. If you are already established you just continue paying. Be careful in the States and be 100% honest on the medical questionaires. They love to try and not honor insurance after the fact. You don't want your widow being pushed around once your gone. (hypothetical of course)

[Slava]

If you are within 6 months of a birthday the rates are based on your closest birthday (in Canada they are and I can't see any reason they would do things differently in the US). A lot of major companies offer coverage and there is nothing wrong with that coverage in most cases. The issues are (a) what if you leave that company and are uninsurable due to a medical issue (b) does the company provide enough coverage for you.

(a) is easy enough to work with at the time of leaving (again this is in Canada) as you have some time to keep your group policy in place. The insurer will rate you as a smoker no matter what in these cases, but you now own the coverage and there is no medical to complete.

In the case of (b) it still works, just make sure that if there is not enough coverage there that you buy something in addition. I would be conservative with the payout for the company policy. I say this not because they won't pay you, but because you ought not rely on suffering an "accidental death" thereby getting a larger payout. Just take the base coverage and make sure that will meet your needs. If the payout is higher it's better than the alternative!

[You Need a Thneed]

Life insurance is only worth getting if you are planning on dying sometime in your life.

[Nufy]

I have Life insurance in Lieu of Mortgage Insurance.

2 Policies with Different companies.

I am worth way more dead than alive.

[Dentoman]

If you have no dependents and no debt .... no need.
I carry life insurance in amounts to cover the needs of my family at the current time. As those needs lessen, so will the amount of coverage I carry. One day, I will carry none except some permanent coverage to cover the taxes on my estate when I die.

[Shazam]

I pay $1 for $15K of life insurance coverage, if you need to know some numbers. I didn't start until I was 33.

[yads]

Originally Posted by Dentoman

If you have no dependents and no debt .... no need.
I carry life insurance in amounts to cover the needs of my family at the current time. As those needs lessen, so will the amount of coverage I carry. One day, I will carry none except some permanent coverage to cover the taxes on my estate when I die.

This, no sense in getting life insurance until you need it. Ie, if you have a mortgage and dependants. Or if you have a wife and kids and want to make sure that they are taken care of in case of an accident. Typical employee life insurance is 1 years salary. That may or may not be enough for your needs.

Bottom line is I would not worry about it at the moment.

[GGG]

You don't need it right now. If you die is anyone effected finacially? From your description no so you don't need any insurance. You only need insurance if your family or dependants depend on your for income.

If you are concerned about prices going up go check some online rate calculators. It certainly doesn't double at age 25. Also I would say that from your chosen field you would have at least the opportunity to purchase life insurance through your job in the future.

[Ace Handy]

State Farm is pushing you because they want more of your $$$. I didn't get it until I was married with a mortgage. No need before anybody was relying on me but me.

[WilsonFourTwo]

Based on what you've described....I'd say no. You do not really NEED insurance.

Life insurance is (imo) about providing for dependents when you're gone. If you have no dependents (and your estate can afford to dispose of you), I'd suggest skipping it at this point.

Now....in your early-to-mid twenties....great time to put away into your RRSP. Whore out compounding interest as much as possible! Rather see you put $300/year into RRSP than insurance.

[Burninator]

I'm the same age as the OP with no dependents but I have a mortgage. Is it worth it to get life insurance that will cover my mortgage or should I just get mortgage insurance?

[DrJ]

Yes - Take advantage of the inevitable.

[Slava]

Get life insurance. Being as unbiased as I can be: mortgage insurance sucks!

[macker]

In reality, life insurance is purchased for more reasons than just paying a death benefit to a spouse or family members. Other parties may be interested in the economic value of your life.....and stand to lose out if that value is not replaced through life insurance, such as your business partner (or future bp), or the bank that holds the mortgage on your house, or taxes due upon death from your investments and assets. You likely don't need a million dollar policy but the rates on a 10 or 20 year term policy for $250,000 are incredibly cheap and most policies can be converted as your needs change. You don't need a wife and kids to start estate planning.

[Shazam]

Originally Posted by Burninator

I'm the same age as the OP with no dependents but I have a mortgage. Is it worth it to get life insurance that will cover my mortgage or should I just get mortgage insurance?

Never, ever get mortgage insurance.

[Burninator]

/\ Okay. Why not? Keep in mind I know nothing about life insurance or mortgage insurance.

[macker]

Originally Posted by Shazam

Never, ever get mortgage insurance.

http://www.cbc.ca/marketplace/in_denial/

[Shazam]

Originally Posted by Burninator

/\ Okay. Why not? Keep in mind I know nothing about life insurance or mortgage insurance.

Read macker's link.

But here's why:

- Life insurance is underwritten when the policy starts. Mortgage insurance is underwritten when it is claimed. Underwriting is assessing the policyholder's level of risk. So, if your life insurance is approved, then chances are very good that if you do die, the beneficiaries will get their money (since whatever you're paying fairly reflects the risk that you are). For mortgage insurance, they do and say anything to prevent payouts, since they want to prove that what you paid didn't accurately reflect your riskiness.

- The mortgage insurance premium never goes down, even though your mortgage is (presumably) declining in balance. Hence, you could owe $10K on your mortgage but your premium is still the same. Contrast this to life insurance, which has a defined payout for the life of the term.

[Burninator]

Originally Posted by Shazam

Read macker's link.

But here's why:

I did read macker's link. It was very helpful. It sounds like life insurance is the way to go.

So where does one go from here? A life insurance broker? What should I be looking for in a policy?