Life Insurance When Young: Does It Save You Money?

Discussion in Life & Health Insurance started by ExpertAdvice • Sep 9, 2015.

  1. ExpertAdvice

    ExpertAdviceActive Member

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    Does getting life insurance when you're young actually save you money?

    Or do you think that it doesn't really make all that much of a difference?

    The thing about life insurance is that the older you get, the more money they'll charge you to actually get and maintain coverage. But, there's the other consideration that at an older age, we're usually able to make more money than when we were younger, so perhaps we're not that "hard up" anyway at that age.

    So, my question to you is, does this mean that if we're older and making more money than when we were younger, are we more or less not likely to feel that harsh an impact on our pockets because of the nature of our financial situation? Or is it that when we're paying more, we can't be saving more?

    Let me know your thoughts on this concept, as I'd like to know when it's better to start "activating" a life insurance policy.

    Thanks much!

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  2. Krissttina Isobe

    Krissttina IsobeWell-Known Member

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    You do save money for insurance payments when you buy younger. My Mother got me insurance when I was just a baby. All my life I had great insurance rates. Unlike me Mom got insurance after she got married. Her rates are sky high. The insurance business is just this way that when you get insurance when you're young your rates are lower. The earlier you start the better it is for you. Here is an article about it:

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    . Life ins. is what we all need for when we die we leave behind debt that your life ins. pays for.
     
  3. xTinx

    xTinxWell-Known Member

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    I have life insurance. I bought it when I was 25. This December I'll be 28, which means I'd have been an insurance policy holder for close to three years now. My policy will mature in 10 years' time so 7 years to go before I can collect the money I invested but with the option to extend the plan for 15 or more years, depending on your need. When you think of investments, you think of capital. You don't see your returns then and there. Although it does weigh down on me sometimes for I have to pay my premium every month, I believe this isn't really as bad as it seems. I still have extra money for emergency and recreational activities. As long as you live according to your means and strive to budget your money, getting life insurance is worth it.
     
  4. gracer

    gracerActive Member

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    I think it's really best to save with life insurance as young as you can and as long as you think you can already afford to do so. The mistake that some people do is to wait it out until they're already older because their reason is that they're still young and strong and that they can't afford to pay insurance premiums. There are insurance plans which are really lower in price but takes a longer time to pay but it's worth it especially if you're still young. :)
     
  5. rickymuus

    rickymuusNew Member

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    Thanks for your insight. I think the earlier you obtain one the better. It is also a great way to save for young people who usually find this hard to do. I am also thinking of obtaining one but I still have some research to do.
     
  6. Corzhens

    CorzhensWell-Known Member

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    Don't get me wrong on this comment for I have a life insurance. However, I don't think it is good to get an insurance plan when you are young unless you plan to die early. The money you had paid for the insurance premium has a higher value than the money you will receive when you grow old because of the inflation. In other words, you tend to lose with the cost of money. I only got a life insurance when I was nearing 50 years old.
     
  7. remnant

    remnantActive Member

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    Life insurance when young is a big plus because one has more time to pay insurance premiums which would mean higher sum assured on maturity of the insurance policy. In any case, nowadays, mortality and morbidity are not necessarily tied to age and can occur at any stage if the statistics of different countries in the world are anything to go by.
     
  8. djdontpay

    djdontpayActive Member

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    Who does it save money for? For the family. The purpose of LI is simply to cover your Dependants financially for at least a few years when you're dead. While it is true that LI gets prohibitively expensive as you approach 60, the lesser cost shouldn't really be the reason for getting LI at a young age.

    That being said, get a LI policy right now! Don't get an expensive one. Get a term plan which will cost you about 10 times less money in the long run. Initially, put your parents as nominees, and later on when you're married, you can change the nomination details.

    There are 2 kinds of money - available and retirement focused. The more you put away into LI, pension plans, IRAs, etc. the lesser money you will have for immediate expenses. So, getting some expensive fancy LI plan that promises you a million bucks after 40 years isn't worth it. Get a term plan. And then invest your "available" money in MFs, savings bonds, oil wells(if you're in texas), etc. Its the available money that will generate wealth.
     
  9. davos

    davosActive Member

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    I'm still pretty young, so I don't know whether is a good idea or not. I'd rather spent money over real state instead, actually. Some life insurance aren't cheap, and even less when you lifestyle entails some risks.
     
  10. Vinaya

    VinayaActive Member

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    I wish I had bought life insurance when I was young.If I had bought life insurance when I was 15, by this time I would have enough money to buy a piece of land to construct my own house. Life insurance is a way to save money without hampering your day to day expenses. If you insure your child when he is 3 years, by the time he is ready for college, you will give him a gift of big money.
     
  11. djdontpay

    djdontpayActive Member

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    Also, you can get as many LI policies as needed. This means that you can increase your insurance cover as you grow older and hopefully richer. Statistics say that most people earn their highest at the age of 50. So, get a less costly insurance policy right now, and top it up as you age and as your income grows.
     
  12. Binu

    BinuActive Member

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    Insurance is a way of saving little money every year and receiving a big amount by the end of 10-15 years. If you have had insurance of $1000 by at the age of 10, by the time you are in college you will have $1000 plus bonus. Insurance will help you your financial obligations after maturity.
     
  13. Alexandoy

    AlexandoyWell-Known Member

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    Actuarial is a science in predicting the culmination of life insurance involving so many factors. And with the study of life insurance, it is a profitable business which is based on probability. That means it doesn't matter what your present age is because the primary purpose of life insurance is to cover you (with money) when you die. If you get a life insurance at age 21 and you die at age 22 then the insurance company had lost on you. But if you die at 22 and you have no life insurance then you lost on it.
     
  14. Ray1

    Ray1Well-Known Member

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    In my personal opinion life insurance is not a good investment but at best it could help your near and dear ones if something unfortunate happens with insured person. I suggest everyone should have an insurance policy at an early age because that's when it gives you maximum advantage.