Life Insurance

on Nov 08, 2011 @ 01:04 pm

I'm not really sure where this should really go hopefully this is alright... if not I guess mods can move it accordingly.

Would you consider getting life insurance when you are young (age 25 and under)?

The concept is that your rating will be lower when you're healthy and young therefore you will have to pay less, also there is a slimmer chance you are denied when you're young and healthy rather then older with potential health problems. 
However, you will be paying over a longer period of time as well if you start young. I guess this question doesn't really count towards term life insurance.

It would be nice to get opinions across the age board.

Sorry if this question is a bit morbid.

10 Replies

i would on Nov 08, 2011 @ 02:12 pm

I would probably consider it if I didn't have really fantastic life insurance coverage through the company I work for. It sounds a bit morbid which is probably why more people don't think about it, and trust me I had a really hard time even getting my parents to listen to me and be aware of it (they are my beneficiaries), but I think it's really important to make sure my loved ones are taken care of if I'm not around.

What I'm wondering is (and sorry to thread jack but it's sorta relevant?), if I die, what happens to the money I have in my bank accounts, savings, rrsps, shares, etc? Does anyone know? On that note, how young is too young to write a will? If you don't write a will and you die, who's the default person to get your stuff (savings, rrsp, etc)?

Ali de Bold
Yes on Nov 08, 2011 @ 02:15 pm

I think you absolutely should get it while you are under 30 if you can. But most people under 25 are just finishing up school/starting first jobs and probably barely making ends meet. Plus at that age you think you are invincible so I imagine it's not a high priority.

I got mine at age 19 on Nov 08, 2011 @ 03:01 pm

I bought my first life insurance at age 19. You can choose to go with a term plan or a permanent plan depending on your budget and priorities. When you start that young, it is very inexpensive!

Term plan - this is a time limited coverage, so after the term expires (usually 25 years, but it can vary), you are completely out of insurance. It is a cheaper option for the short term, and during your term your rates never increase.

So if you're 20 and you get a term policy for $200,000, it might be $20ish per month. (I'm pulling these numbers out of the air based on my experience - I'm not qualified to give you any real advice!!).

But when you are 45 and need fresh insurance, your rate for the same insurance coverage might be $300/month (again, number out of the air).

Permanent plan - this is life insurance you'll have for your entire life. You will be 99 years old and still covered as long as you continue your payments - the amount will never change. So if you pay $30/month for $100,000 of permanent coverage as a 25-year-old, that is the rate you will pay "forever". If you want to add additional insurance, your new batch of coverage will be priced out based on your age at the time of the addition. So if you added $100,000 more as a 30-year-old, your rate for that portion will be more expensive. The first batch of insurance, as I said, stays the same price.

Whichever option you get, make sure it includes "guaranteed insurability". This means that you can up your insurance a certain number of times during the life of your policy (again, depending on whether you get term or permanent) REGARDLESS of your health.

So if you get cancer, you can boost your life insurance to a higher amount and they cannot refuse you. There are probably limits on the amount you can up it - I don't think you could boost it to $1million just like that.

We purchased life insurance for our kids for this reason. They have guaranteed insurability for the future and in the unthinkable event that one of them dies, we'll have the small comfort of knowing we can afford the bills associated with that (we'll probably be basket cases and unable to work, I'm guessing). I want to be clear that this was never a driving reason - it was more like a side benefit. We only purchased a relatively small policy, just to get them started.

we have it on Nov 08, 2011 @ 09:29 pm

We go life insurance once we were married (we were 30 and 33). We each have considerable student loan debt and now we have a mortgage together. If one of us is to die we didn't want to leave the other person strapped. Of course, life insurance will be all the more meaningful once we start a family!

Depends on Nov 08, 2011 @ 11:14 pm

From what I've read (which isn't much), life insurance is to take care of your loved ones after you pass away because you're unable to provide for them anymore. I'm currently single and don't live with my family and thus if I were to die somehow (let's hope not anytime soon!) it wouldn't be a big deal financially on anyone. It's not like I have a husband or children who would need a source of income to help them out. Thus I currently don't pay into a life insurance plan myself though my workplace might have one.

Yes get it on Nov 09, 2011 @ 10:08 am

The younger you are
when you start the better off you’ll be payment wise and if God forbid
something did happen to you your family wouldn’t have to pay for every thing
out of pocket. A lot of people just don’t realise how costly a funeral can be
no matter what your age is at the time. If you have any debt it also has to be
paid off, it doesn’t just go away because you’re gone. Some credit cards and
loans will offer you insurance so if you do die it will be paid off. Maybe you
should look into that while you at it if you haven’t already. All my credit
cards and loans are insured and it only cost a few dollars a month. We have
great coverage through my husband’s work, so I can’t give you any help on where
to go for it, or how much it will cost. It’s also different in the States
compared to in Canada.
The best thing for you to do is to shop around, make a few calls. Ask what you
get and how much it will cost you each month. Oh and don’t think that just
because you’re only 25 it will be cheaper now. If you have had anything wrong
with you in the past they made ask you to do a medical before they give you a
price. When I was 23 I got my own life insurance, but as soon as I marked down
that you had any health problems, they made me take a medical. It ended up
costing me $35 a month when my husband who was just a boy friend at the time
and is six years older then me only paid $20 a month for the same coverage. It’s
always best to have if you can and if your going to do this you should think
about getting a will as well. Or at least let people know now what you want done
such as a regular funeral, or cremation, a big deal, or just the family, put in
the paper, or just told to family. We never like to think of this day, but I
think its great that you are and that you are at your age! Good for you, we
need more responsible people like you around!

Beaky you can write a
will when ever you want to. I don’t believe there is a set age, but I doubt a
ten year old would be thinking of one. If you don’t have much like my Grandma
you can just write down on a peace of paper what you want done with what you
have and who you’d like to have this, or that. That’s all my Grandma did and
everything was fine, but we aren’t the type of family that would fight over
things. My father’s side was a different story and my Grandma on that side knew
if she didn’t write a will they’d all kill each other. As it was the will still
didn’t stop the fighting. Sad ay. Will just make thing easier for everyone left
behind no matter how much you have, or don’t have. I’ve bin wanting to write
one up for awhile now, but my husband doesn’t see the point. Unfortunately he’s
the type that hates to talk about any of this.

funeral and wills on Nov 09, 2011 @ 02:40 pm

Takoda's right - it's not just your vast wealth (or lack thereof!) that's the issue. Funerals and burial can be very expensive.

Take care to read your employer's or credit card insurance details - some of them are related to accidental death only and might not cover illness as a cause of death.

As for wills, it's important to get those done earlier rather than later. For most people, it'd be a simple thing of saying "give everything to my parents/spouse". If you don't have that in place, the courts will decide what to do with your worldly goods. I believe it usually goes to next of kin, but if you wanted for example a certain piece of jewelry or a rare collectible to go to someone specific, it would be important to have that in writing.

You can get Will kits at places like Staples (I think?), though they do need to be notarized or possibly reviewed by a lawyer. It's also important to know that if you move to another jurisdiction (province/state, country), your will may no longer be valid - though it is my understanding that a judge would probably uphold it anyway unless it was contested.

It only costs a few hundred dollars to have a lawyer draw a will up for you. If you have very simple assets, you can probably walk into any neighbourhood law firm and they can slap one together in no time.

It may not be that big of an issue when you're still single and on good terms with your family, but as soon as you're married or have children, you should definitely take care of that will!

Ali de Bold
Oh fart on Nov 09, 2011 @ 03:06 pm

We just got quoted $700/month!!

yikes! on Nov 16, 2011 @ 08:49 am

@Ali - I'd shop around. That seems extremely expensive unless, of course, you're looking for quite a lot of coverage.

Ali on Nov 16, 2011 @ 11:49 am

That sounds way to high to me too. Mamaluv is right you should shop around more. I'm not sure if it differs from one city to the next, but when I had half a million in life insurance on myself it wasn't even that high.

Leave A Reply

Your Reply:


Join Our Newsletter

Stay in the loop for the latest news, contests, deals and more!