Do I need life insurance?

Financial Planning - Financial planning in general. (Moderated) 

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Subject Author Date Do I need life insurance? oprah.chopra 10-31-2007  Re: Do I need life insurance? joetaxpayer 10-31-2007  Re: Do I need life insurance? kastnna 10-31-2007
Posted by on October 31, 2007, 5:15 pm I am 30 years old, single and have net worth around 400k. A life insurance agent is trying to rope me into buying his policy as he claims I can get almost a guaranteed 4-8% ROI which is better than a bank CD. This agent is quite pushy and does not take 'No' for an answer. From what I have read online, if you dont need life insurance then dont buy the policy. Is that correct in my case? Posted by joetaxpayer on October 31, 2007, 5:39 pm oprah.chopra@gmail.com wrote: > I am 30 years old, single and have net worth around 400k. A life > insurance agent is trying to rope me into buying his policy as he > claims I can get almost a guaranteed 4-8% ROI which is better than a > bank CD. This agent is quite pushy and does not take 'No' for an > answer. From what I have read online, if you dont need life insurance > then dont buy the policy. Is that correct in my case? "I have no dependants, I need no life insurance." Small enough to fit a bumper sticker, really. I only have life insurance because I have a Wife and Child. JOE www.joetaxpayer.com Posted by kastnna on October 31, 2007, 6:11 pm My answer is a definite "maybe"! I would consider a new agent no matter what. He's not the only guy out there selling insurance and it doesn't sound like he is working for YOUR best interest. An 8% ROI for the average policyholder is a little over-zealous. Even if he is sincere, almost no good can come out of working with someone you don't feel comfortable with. As for the insurance, we need a little more info about your situation. If you have debts that would be difficult for others to satisfy (like a mortgage or student loans), unfunded educational needs for children, or a spouse/family that relies on your income (or your ability to stay home and not spend money on daycare) then you may need term insurance. There is also another consideration. A net worth of $400k is above average for your age. If you project this number to continue growing, you may be one of the lucky few that have to deal with estate taxes ($400k @ 5% annually for 55 years is over $5mil). If you expect this to be the case, you may want permanent insurance (like Universal Life) to cover estate taxes. In this sense you are insuring a problem that you don't yet have (and may never end up having). That's a risk you'll have to weigh yourself. Paint your picture a little more and we can probably give you more specific advice. Good Luck! Similar Threads Posted Life insurance in 401(k)-PSP November 29, 2006, 11:53 am Life insurance exclusions November 10, 2006, 2:03 pm whole life insurance numbers November 13, 2006, 5:02 am Term Life Insurance November 13, 2006, 2:01 pm Re: Life Insurance Annuity August 13, 2007, 3:50 pm "Paid Up" Whole life Insurance August 25, 2007, 7:50 pm Term Life Insurance October 1, 2007, 2:33 pm Life Insurance Beneficiary November 3, 2007, 6:55 am Life insurance ownership November 14, 2007, 3:24 pm Life Insurance Options January 14, 2008, 7:18 pm