Life insurance with no family

Hey guys,

I've been thinking about getting life insurance even though I don't have any real commitments financially and I don't have a family to take care of. I've been thinking about it for 5+ years now but I have never pulled the trigger on it. I'm 34 with a low end job/little to no benefits and I don't see myself going many places in terms of employment so this will be self funded.

Basically, if I get T-bones tomorrow, there will be nothing to show for my life. I feel like I should leave at least something to my sister to help her out. She can pay off her house, student loans, help a pet shelter, retire early, really anything. I just looked at State Farm and I can get a million bucks for 10/20/30 years at $470/$630/$1130 respectively. I can't afford the 30 year rate but a million dollar pay off for 630 dollars a year seems like a no brainer. Hell, that'll run until I'm 54 which is a long time. I don't expect to die but you never know. Crazy stuff happens all the time.

Any thoughts?

Thanks

I'll pay half of the bill if you give me 200k.

Shop around for quotes. I went with aig for 30 years and it was 694 for 30 years for 1m+

Had to do a physical with their rep to qualify.

If it makes you feel better I guess. When I was single I had free life insurance through my employer where my niece was the beneficiary. But to answer your question, no.

Get a small policy, $20k to put you in the ground, and use the other $600 a year to do something nice for your sister and family now. If and when you get married, get a policy to cover your responsibilities.

I would set aside some money for any burial costs and the rest you would spend use to do things to help family now. Maybe small projects on their house etc.

Also you’re 34 and you said you don’t see yourself going any further work wise? That’s a grim outlook man. A little effort goes a long way in most fields and if you aren’t happy with what you’re doing why not make a change now while you’re single and can take a step back to go two steps forward.

I’m going on 34 this year and it pains me to see people my age feel they’ve hit their peak already. Best of luck man!

Yes. Million dollar policy with beneficiary being your “brother”. Take a cruiseship and go missing. Come back as your brother to claim your prize.


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I got on the State Farm plan when I was 27 (34 now) and that plan was probably the best decision I have made because I can cash it out for a considerable sum whenever I want which I think the cash payment is about $22k at the moment and every year it goes up by like $5k or so I think. Then a little bit later down the road I will be able to pull out equity from it if I need to. It costs me very little to pay into but it seems like a great safety net for me in many ways.

Another option would be to add some sort of ancillary product to your health insurance which pays cash dividend if you were in an accident, or had a life threatening disease or surgery. Basically catastrophic coverage assuring the access medical bills that aren’t covered by your health insurance policy would be.

Seems to me that you are looking into a whole life policy. I believe term would benefit you better in the long run. I just picked up a 20 year, term life policy for $850,000 for $70 a month. Invest t

It sounds like you are letting guilt be your guide. Bad idea.

Please start listening to Dave Ramsey, or find a local financial guru to guide you. Be aware, most just want your money and know how to sell you on anything you don't need.

I've had good luck with my current guy, but I've interviewed many before establishing a relationship with this guy.

Most are shady and will do pretty much anything to get your money. Selling life insurance is one of the most direct ways they will take your money.

A single guy with 0 dependants doesn't need life insurance to protect assets and a livelyhood/lifestyle for those he leaves behind.

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Term > whole life...

Meaning no offense at all, but I absolutely HATE your plan. Rather, I would like to see you focusing on building wealth for yourself RIGHT NOW. Then, when you die, you can leave MILLIONS in assets to all the people you want.

As others are suggesting, start by learning from financial gurus. And perhaps find a mentor too.

Here's the kind of stuff I listen to every day:

OP, do you know the goal for life insurance? It’s to protect your dependents, those that depend on your income. It is not meant as a gift to family/friends.

if you die your dependent/s can put the money left into an investment that would replace your current income. If you make $40k a year, $400k term insurance policy is recommended.

If you die how does your sister live? Her work? Your parents if under 18?
The only reason to buy insurance if she’s under 18 and your parents can’t/don’t help her. If that’s the case a 10 yr term of $100k for under $50 a year would be fine. If she’s real young then you can get more but definitely $500k or less.

Thanks for the input.

It is term insurance and those are the yearly fees so it's 60/mo give or take. I agree that a million is a bit over the top but it would be a life changing amount of money. I only want the best for her if I go early. I would likely drop that down to 500k for half the price. She's doing pretty good in life for 30 years old. She has a good job but has had some health struggles.

what a ****ing scam ...put that money in your 401k or other investments ....

What a noble idea. I would get 250,000 short term and put as much as you can in your 401K with her as the beneficiary.


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401k and get buried in a Bently!

No need for it if you don't have dependents. Like others have said, better to bust your ass to acquire wealth. Make her beneficiary on all your accounts. If you were to get a policy though I'd go whole over term. If you live over the 20 years of the policy you're thinking about, you still have nothing to show for it and you're out more money in the premiums you paid. Atleast with the whole policy you can cash out and use it for yourself if you live over 20 years. You'll have something to show for what you put in.

If you take the difference between the term payment and whole life payment, then invest properly you end up with way more money in the long run.

Blk04L said:

I'll pay half of the bill if you give me 200k.

Shop around for quotes. I went with aig for 30 years and it was 694 for 30 years for 1m+

Had to do a physical with their rep to qualify.

Click to expand...

Blk04L said:

I'll pay half of the bill if you give me 200k.

Shop around for quotes. I went with aig for 30 years and it was 694 for 30 years for 1m+

Had to do a physical with their rep to qualify.

Click to expand...

I see you 200k and up the bidding to 199k for half the premium and the major beneficiary. I think this is solid crowdsourcing funding between svtps.
OP let’s get you to the gym and see some bloodwork!