The answer is-probably. But don't go with whole life insurance. It's too expensive, and the 'forced retirement' investment aspect of it is really not worth it. You'd be better off getting term life insurance, the cheapest kind, and investing whatever funds you have available yourself, in a diligent manner, for the long term.
In this way you'll almost certainly have more saved up over 20-30 years than the 'death benefit' that whole life promises your beneficiaries.
Variable life might fit you if you have some financial knowledge and can stomach some degree of risk.
You might take a look at this insurance guide for info on the basics. Good luck.
That depends on your situation and the type of life insurance you buy. If you are still young, your parents still have a life insurance policy on you, you have no debt, and no one financially depends on you, life insurance isn't worth it. The only other time that you won't need life insurance is when you have built up enough wealth that your family would be able to continue their normal life without you earning money anymore (called self-insurance).
Other than that, the simple formula says that you should have about 8-10 times your personal yearly earnings in life insurance. That can change if you have a lot of debt (such as a jumbo mortgage) or have no debt at all, have 4 or more kids, a very large retirement account, etc.
Term life insurance is the only pure life insurance available. All other forms are coupled with some type of investment. These insurance packages are never a good investments for your money. They are often sold as an investment for retirement. Truth is the historical average for whole life is 1.5%, universal life is less than 3%, and variable life is 5.5%. The statistical average on 401Ks and IRAs are higher and mutual funds have averaged at 11%.
The important thing to mention, it that you must invest. When your term insurance policy ends in 15, 20, or 30 years, you should be debt-free and have made enough from your investments to not need to buy another term insurance policy. Therefore being self-insured.
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Read the hubs in my Financial Strategies series to learn why Life Insurance is awesome if you know what type to get and how to use it.
Yes, life insurance is worth it but only if you make sure that you get the right type of life insurance for the situation that you are currently in. The purpose of life insurance is to help your loved ones out financially when you pass away. If you have young children and are the sole income earner in your home then you want to make sure that your life insurance offers a generous payout that will take care of your entire family in case you die. If you are a young person yourself, don't have children and have parents who are still financially independent then you don't need to have as much life insurance coverage. It will still be worth it to get life insurance in this situation but the policy that you select will be different from the person who has a family to support. Also note that there are many options that you can add to life insurance, such as accidental death insurance, that can be worth it for some people and not for others. Review the details of life insurance options carefully and select the one that is truly worth it for you.
Certainly it depends on you situation but if you household is single or unequal income - you really should make sure the one who earns the most is insured - or both if children are involved - who will look after the children if the care-giver dies. Really unless you are single and your elderly parents won't need support either - that's about the only time you would not need it - I guess! If you want a few cheap online quotes - try http://www.lifepro.co.uk Cheers!
Off course !!
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and find satisfactory answer.
Term life insurance is great for purchasing the maximum amount of death benefit for a certain period of time. More people should have this coverage to protect those who depend on their income. They don't though because they see the product as a cost they hope their family or business partners ever profit from.
Fixed cash value life insurance is an expensive way to get a death benefit for a short period of time. It requires more premium than term insurance for the same amount of death benefit.
The way to justify the purchase of cash value life insurance is if it can provide a benefit that makes something else in their life easier to accomplish and they would need to take a long term approach to that goal. These aren't "death benefit" goals. They are goals that give the policy owner the ability to manage risk, sleep better at night and spend more/live larger while alive than other alternatives that are available.
Cash value is the centerpiece for most of the financial plans I implement with clients because it manages risk with a decent rate of return. Of course, it manages risk because it is insurance. The attributes of the policy allows an investor to be more aggressive with the remainder of their portfolio. Some of my clients in 2013 received a 52% return in 2013 with more than 50% of their wealth in boring old cash value life insurance that all the experts tell people to avoid.
An individual should not rely 100% on cash value life insurance, however, they should own it and use it for what it is able to do for them.
The death benefit that cash value insurance can easily have a purpose in the plan a person has for themselves. This could be simply to delay Social Security for as long as one can to increase the payout (which is protecting the net worth a spouse or beneficiary will have due to the need to spend other assets during that wait time).
So is it worth it? Like any tool, if you know how to use it then any job can be easier.
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