Do you need life insurance? If so, what kind?
I learned a long time ago not to believe everything an insurance agent says. They are basically sales people. And they may try to talk you into something that you don’t need just to earn a commission. When I was a kid, my parents bought me life insurance. Later on, the insurance agent guy talked me into switching to a different kind of insurance. I didn’t know what I was doing. I still don’t know the details of what it was about. But point number one…KIDS DON’T NEED LIFE INSURANCE!!!! Life insurance is for the benficiarys. Kids don’t have dependants! If a child dies, the parents aren’t going to suffer a loss of income from it. As a married man, if I die, the loss of my income WOULD be a hardship for my wife. So I now need life insurance.
But back to the life insurance agent from way back when. I belive that he was switching me from one type of insurance to another type just to stir up a commission. I didn’t need the insurance to begin with. And then I didn’t need to change to the different kind. My guess is the insurance was whole life insurance. Beware, many insurance agents are scumbags! Be aware also of all the hidden fees they stick in.
Today, I have term life insurance through my work. Whole life insurance is kind of an investment/insurance. I want life insurance for the insurance. I have plenty of other investment vehicles for my use. Whole life insurance is a poor excuse for a retirement investment.
As we grow older, and our investments grow, I will need insurance less and less. Lets say that when I turn 55, and our investments have grown. My wife will be taken care via the investments, and will not so much need the life insurance any more.
Before you buy life insurance, figure out whether you actually need it. If you die, will someone be hurt financially? Do you have dependants. Then figure out how much you need. If you have lots of outstanding debts such as a mortgage, and car paymetns, etc. Life insurance is to take care of your beneficaries. Make sure you have enough. Also make sure you know what you are getting. Just because an insurance agent tells you that you should have such and such, do your own research.