I was talking to my mom today, and she said it might be a good idea for me to get life insurance right now. Apparently, once you hit 20, 30, etc. your rates go up a lot? And if I get term life insurance right now, I will be able to keep the same rates for the rest of my life (which would end up saving me a lot of money down the line)...and she estimated I could get like a $1 million one for $10 or $20 a month. Is this accurate at all? Anyone else have any suggestions?

Is this the same mother who needs her own son to help her pay off her debt? And you're going to take money advice from her?



Your rates are based on your age, and dozens of other factors. Of course, all other things being equal, the older you are, the higher your rates will be. However, right now you have no need for life insurance, so every dollar you spend on it now will be a dollar wasted. You have no dependents, so you don't need life insurance.

Also, with term life insurance (the only kind you should ever consider), your rates don't stay the same for your entire life. They stay the same for the length of the "term." That's why it's called "term" life insurance. After the end of the term, the rates adjust.



Why don't you go to any insurance company's website and fill in their online quote form and see for yourself?

But the bottom line is, no, you do not need life insurance at all. And you shouldn't take money advice from broke people.

Also, if you did get insurance now, the term would run out right when you needed it most (when your kids are approaching college age.)

If you are unmarried & have no dependants, you don't need it. Invest that money instead.

Use a quote generator to find what you qualify for. Sure, we're more than happy to sell you life insurance, but always consider the long term approach. If you're younger than 20 years old, maybe you have other things to take care of first, like college debt, car payments and saving up for the future. But if you're really interested in getting yourself covered because you have a beneficiary in mind that could do with the help should anything happen to you, then get the insurance. Term insurance rates will be very low right now, and you can shop around for a new policy in a few years if you'd like to extend coverage beyond your 50s (assuming you get a 30 year term when you're 20 years old). Good luck!

Pat Cassidy
Disclaimer: I work for an insurance company and this is my personal opinion.

Um, why does your mom want you to take out a million dollar life policy, at age 19? Is she planning a very expensive funeral?

a) Get into good financial habits, such as having a budget, saving a portion of your earnings, paying for education, etc.

b) As far as your health develop or maintain habits (decent weight, not smoking, no eating junky food) so when you do apply for health insurance you can get a low rate.

c) Apply for life insurance when your life circumstances change (you get married or have dependents).

The only thing I would change is if you have a high family risk of developing a certain disease that would adversly affect you getting life insurance later, such as diabetes, heart attacks at age 30, etc. Then I would get it earlier with a long term.

Let's hope that's the only thing she might be planning...

I can't imagine why a single, child-free person would buy life insurance. But I see the sales vulture is more than happy to rip you off, I mean, sell you a policy.

While I certainly don't think you need a million dollar policy I would still suggest a small amount of life insurance. Funeral/burial costs are a lot of money and in my opinion that burden shouldn't be placed on someone else if you die. Get a $20k term life policy for now and name your mom/parents the beneficiary.

As everyone else said, when you have children and are married you should definitely increase the amount.

You shouldn't spend a dime on life insurance. Not a million dollar policy or a 20,000 policy. Total waste of money for a 19 year old.

Funeral and burial costs are not a lot of money. For a 19 year-old they are a small, highly unlikely expense. They fall in the category of things that should be saved for and not insured against. If the OP builds a net worth to $20000 that will be available to the heirs for funeral expenses if necessary. Besides, cremation costs less than $2000, not $20000. Save up for that and put it in a POD bank account if you are really that worried about it.

A single 19 year old with no dependent should not be buying life insurance!

Sounds like OP's mom has a financial plan like many older folks I know....

1. get life insurance
2. then burial insurance
3. and don't gamble on something silly like stock investing

...in that order!

I was basing my cost off of average cost of a funeral from the NFDA (granted they are the ones making the money off of the funeral so they are probably a bit high.)

I was also basing my estimated cost of $20k worth of insurance for a 19 year old on the same rate that my company would charge which would be $0.92 a month. I don't think the OP stated where he was looking to get insurance, if such an employee sponsored plan were offered then he might be able to get a similar rate.

If he were saving the $0.92 he would have all of $11 saved up if he died by the time her turned 20. That wouldn't be enough to buy fuel to fire up the crematorium.

Who cares...he's dead. He has no dependents or estate to protect. If it cost $1/month for a million dollars in coverage it would still be a dumb investment.

I must have missed the memo in the forum that we don't care about the people that might be left behind in the event of our untimely demise.

I say IF something is available for a low low rate then go for it. Will he ever see the benefit from it? Definitely not. Will those left with dealing with the aftermath of his life appreciate it? I would think so.

That is all.

I think you're missing the point. At his age with no family or kids and probably in good health, he'll see more benefit investing his money in something other than an insurance policy. Insurance is not an investment.

Lemme ask you this...if you were his heir & were given the choice of an insurance policy written by a team of lawyers with every gotcha clause under the sun in it or an investment portfolio with you being the only beneficiary, which would you choose?

For arguments sake let's pick a huge number that's worth fighting for...say $1 million...for both.

PS: I'm making the assumption that the OP is smart enough not to bleed the portfolio dry over the years on flashy cars, beer, bling, & strippers like most of the morons I know.