So I got this life insurance

[Cincypackagehandler]

I bought this life Insurance that costs 97 bucks a month and it covers all the basics but it has this cash value amount of 100 K and the guy said after 2 years I can just take as much of that out as I want? I'm only 24 years old, I've been working at UPS for almost 5 years and I have a 401K and I have some sense on how to save for retirement. Is their a catch to this life insurance policy I got? So in two years I can just have access to 100 K without paying it back and it'll just lessen the value of my life insurance if I die? Someone please explain this to me please..

 

[Catatonic]

Sales people will tell you most anything.
My answer is no, you cannot take out 100k after you have paid in only 2400.

 

[UpstateNYUPSer(Ret)]

You have 3 days to cancel this transaction. I strongly urge you to do so. Life insurance with a cash value is a rip off, especially for someone as young as you are.

Look in to a term policy. At your age you should be able to get a $500K 30 year term policy for around $20-30/month. This will cover you while you are working which is really the only time that you will need life insurance.

 

[upschuck]

Look in to a term policy. At your age you should be able to get a $500K 30 year term policy for around $20-30/month. This will cover you while you are working which is really the only time that you will need life insurance.

Invest the difference and you will be ahead.

 

[Jackburton]

I'd also like to add if you're 24, single, and no kids there really is no reason to carry life insurance, besides to bury you. This is assuming the aforementioned is accurate about your life.

 

[jumpman23]

97 Bux a month= YOU GOT RIPPED OFF SUCKA lol.

 

[ajax25]

The cash value if a life insurance policy is simply this: the total of what you out in minus the cost of the insurance + the interest that money makes= the only way to really make whole life policy work at your age is to over invest on it, put as much in as you can (there are limits) then eventually you will have a nice wad of cash to work with and you can choose to either take it out (usually tax free) or have it added to the amount of death benefit. I would tend to agree with the previous posters, at your age but term insurance and invest the difference in what you were paying. Have enough coverage to pay off any debt you might have and to bury you. your debt can be rolled over to your family (even your parents) I used to sell life insurance for a living and that is what I always recommended to anybody your age. I would guess that you could get something like a $250k 20 yr term policy for about $20-25 a month


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[UpstateNYUPSer(Ret)]

I would guess that you could get something like a $250k 20 yr term policy for about $20-25 a month.

At his age he would better served with a 30 or 40 year term policy.

 

[ajax25]

That's also true, lock up as long as a term as possible, 20yrs was simply an example, most companies don't go above a 30 yr term policy though and it's typically tied to your mortgage in that case


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