Life insurance for single young adult
- Thread starter Limozine
- Start date
Patriot1
Expert
- 23
Hello Limozine, I don't know everything about this person obviously, but I will presume that he has some budget flexibility for life insurance. I recommend permanent life insurance in general and indexed universal life seems to have a lot of upside to it...just make sure he doesn't pay the minimum, have him keep it funded well so that it doesn't run out of steam when he (his spouse/family) really needs it.
- 4,575
Term at a minimum for protection. Then, if he has little to no credit card/student loan debt & has an emergency fund & is saving decent amount at company 4011k, then would move into the discussion of possibly WL or max funded IUL.
Going with WL or IUL won't help him if he loses job & doesn't have a decent emergency fund or control of debts. I have seen way too many people bail on WL & IUL in yr 3 or 4 because these other things popped up.
- 2,262
whatever amount of premium he wishes to afford without cutting into any other money. No policy is worth anything if it comes off the books because of an inability to pay the premium
it really depends... If you want to have coverage there When you die, get a whole life policy. If you want coverage IF you die in a certain amount of time. Get a Term policy. If you want to utilize cash value gains / options while maintaining life insurance go Universal. Heck.... get a 100k - 50k Wl for your final expenses *when that day comes* I'd say a participating policy that pays dividends, maybe even a 20 pay if you can handle it. Layer on a 30 year term or look at some term rider options.... then look at some universal options, as a 3rd policy, and illustrations and figure our if it would make sense..... that's what I would do.
It all has to make sense for you depending on your long term goals/ needs as well as your current situation. So it really is hard to give a solid answer that will be the right choice for you without having a full conversation.
It all has to make sense for you depending on your long term goals/ needs as well as your current situation. So it really is hard to give a solid answer that will be the right choice for you without having a full conversation.
- Thread starter
- #8
Nothing other than his family having to pay the funeral bill. However, if he marries/has children in the next ten years and his health has declined for some reason, he'll be paying a good bit more than he would if he gets insured now, so there's lost opportunity cost.
I'd recommend a small permanent policy of 100k death benefit. 100k usually gets the first price break from most carriers and is a better value than a 50k-99k policy.
IF the person were to need more insurance in the future then that person should consider buying a convertible term concurrent with the permanent policy. It should preferably be convertible into the already issued permanent policy, since that policy would be past most of the highest early year charges and be will into any surrender charge schedules.) A new policy in the future is likely to be far more expensive than simply increasing the amount on the current policy.
And any advice would need to be based on facts and circumstances of that individual, but that's the general idea, if I understand the situation.
Is there family history of health issues?
Similar threads
