1. Larry GilmorePRO
    Agent Owner, Gilmore Insurance Services, Marysville, Washington State
    How much ya got? ;) Actually that is a good question as insurance only works is if it is in force when you need it and keeping it in force requires you to spend money on it. While you may have several choices put in front of you by an agent, focus on what you can do and keep doing consistently. Cover your obligations first, then see what you can do.

    For example a young person without much debt or even a family might want to consider purchasing a Whole Life policy as a starter plan. The reason? The price will NEVER go up and the policy will build up cash values and death benefit (mutual company) over time, and once you have it they (insurance company) can't take it back, charge you more or change the policy. It's yours and you own it. While that might not be important at 25, it sure is at 55 with health issues and a mortgage.

    Consider the purchase to similar to buying raw land. You purchase it as a young person and let it develop over time. The only difference lately, with a whole life, ya can't go backwards.
    Answered on April 10, 2013
  2. Zachary Wright
    Owner, Wright Insurance Agency, Great Pittsburgh Area
    This will depend on the type of policy you want / need is and what is the purpose of the life insurance. Getting the right type of policy and face amount is much more important than just a dollar amount.

    From just a money type of view and taking out the importance of what life insurance covers, it's a good idea that for every $1 you put away in savings / IRAs etc, you should put about $0.20 to $0.30 of that away in some form of permanent life policy.
    Answered on April 11, 2013
  3. 300 POINTS
    Ronald Hinch
    You should actually be more focused on the amount needed and not how much you should spend. The amount of life insurance should be first calculated to cover final expense, paying off debt (credit cards, loans, etc.), income replacement, and lastly, providing money for college for the kids(if desired). This can uncover a very large face amount and but will be quite affordable to you through the purchase of low-cost level term protection in the terms of 10, 15, 20, or 30 years. One thing to remember is if budget is a concern it is better to cut the term then to cut the face amount of the policy.
    Answered on April 11, 2013

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