Should I take Term Insurance?

  • by Denis
  • Mar 13,2018
  • 10 answers

Term Insurance is essentially a life insurance with a fixed rate for 10, 20, or 30 years.
I have pre-qualified for $25 a month for 30 years of life insurance, in case of death of me of my spouse, we receive $500,000.
I also have life insurance at work at a much cheaper start, but the rate will increase the older i get.
Should i bother paying monthly for me and my wife until we are 50, paying $50 a month???


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Insurance Answers (10)

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lucy 2 months ago

The problem with your work insurance is that it is only good (while) working and the odds of you dying before you retire is pretty slim. If you change jobs, then no longer have, or pay the (full) price to transfer after you leave.
I am guessing you are in your 20’s, thus insurance is cheap. Term insurance is great since you can get a lot more insurance for much cheaper, since being term, then once the term is over, then you have to start over with another term policy, which will be based on your new (current) age. Most term insurance policies will show based on the age the cost, so say you are age 25 and you get a 30 year term policy that when it expires, then what would the cost be at age 55 for the same coverage? I (think) that the maximum age you can buy to is age 85, and if wrong then other agents on here will correct me.
My (opinion) is that you buy enough insurance to (replace) your income if you were to die. You just had a baby recently, and maybe thinking of having more children in the future. So, with this insurance would want enough income to possibly help pay for your children’s college.
But the downside of term insurance is if in the future, you get sick, then will only be able to get either guaranteed or funeral policies. So you take a risk that you are still healthy enough to renew or start a (new) term with another company. My (late) husband took out a 20 year term policy at age 51, then at age 58 got PD, so when it expired in 2016 at age 71, he was (then) uninsurable to get another term policy, only guaranteed or funeral policies. He subsequently died 4 months later.
Now if you get whole life or universal, then as long as you pay the premiums, thus no worry if in the future you develop an health issue.
You might want to consider (both) whole and term insurance since you are young now.

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StephenWeinstein 2 months ago

I would say no. Or at least not the amount that you said.
$50,000 isn't enough to support someone very long; it won't be enough to replace the income of the deceased spouse and the surviving spouse will still need to work a job. If you need life insurance to replace the income of the deceased spouse or to support your children or so that the surviving spouse doesn't have to work, then $50,000 isn't enough.
If you need it to cover funeral expenses, then it makes even less sense. First, $50,000 far more than you would need. Second, you're much more likely to die after the end of the term, so your need will be greater then, when you won't have the insurance.

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Billy 2 months ago

No, get permanent, it stays the same price and then after 20 or 25 years it is paid off and you keep it the rest of your life.
Term is No good, it keeps raising in price and after you get to a certain age it is suddenly No good and it was a total waste of money.
The younger you get permanent the cheaper it is so get it for as much as you can so inflation over the years doesn't hurt it.

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Insurance Pickle.com 2 months ago

Whatever type of insurance you take, as mentioned about work should supplement your own plan that you own. There is no one plan is better than the other. There is no betting on winning or losing. Many people buy multiple policies as no one policy is the be all/end all to policies.
The question is how much do you need and how long do you want it to last?

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A Hunch 2 months ago

If you need life insurance, work based life insurance should always supplement privately owned life insurance.
Why? Unless you have a accident or very quick illness, you will likely no longer be employed when you need the coverage (ex: with cancer you would have likely taken a leave and then been let go before, cancelling the coverage, before it's needed).
You can talk to an agent to determine the types of life insurance and what type is beneficial to you.

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Dr Yes 2 months ago

Would you go to a casino and bet on losing? Try whole life,or permanent life, insurance. They are investment vehicles as well as life insurance. With Term you will lose everything eventually unless you die early. With whole life you can actually cash out and get your money back. Or borrow against it.

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lamar 2 months ago

Yes it's cool

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Casey Y 2 months ago

That's your call. Judging by the triple question mark behind $50 per month...I am guessing you don't want to purchase.
Do you need life insurance? Search for "life insurance needs benefit analysis calculator" and see how much you might need in coverage based on your specific situation. If no kids, you may not need any coverage at this point....

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Valleycat1 2 months ago

If the two of you rely on the other's income or would have to pay someone to take over their responsibilities if they day, then yes. If you lose your job or go elsewhere, that policy disappears. And with term insurance, the older you are when you apply, the more the premiums will be.

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H. Marie 2 months ago

if you have a policy you know exactly how much you will pay for it($25/mo) in contrast to another plan that will increase as you age, it would appear to me the fixed one is the wiser choice

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