Please, what ever you do, do not listen to the nay sayers. Do not think of life insurance as an investment, but as protection. If you are married or have kids, life insurance is the most important insurance you can have. If you are single, disability insurance is the most important insurance you can have. There are several types of life insurance out there and because of this you can pay a wide range for the same amount of coverage. The most important thing to know when buying life insurance is that you get enough coverage. Talk to a local insurance agent. If they don't ask you questions about your income, assets, loans... find another agent.
Life insurance is generally a good value, although some policies are a better value than others.
Basically, you are pooling your money with other people, and the pool pays out something when someone dies. How much you have to pay in is based on the probability that you will be the lucky winner of part of the jackpot - and die.
Just like a casino or a state lottery, you can estimate the "Expected Value" of the payoff of insurance. Using probability and statistics, you can determine how much payback you can expect (on average) for every dollar that you put into insurance.
Term Insurance is the least confusing, because there is no "investment" portion, like there is with "Whole Life" policies. Basically, the way Term insurance works is that you pay a premium, and you are in effect saying to the insurance company "I bet you that I die this year". The insurance company is betting you don't. If the insurance company wins the bet, they get to keep your premium, and if you win, then your loved ones get to keep the payout.
Of course, the expected value to the buyer for every dollar paid in will be LESS THAN a dollar (otherwise the insurance companies would be out of business fast!) Insurance Companies generally make a very decent profit, but not outrageous. And they have sales people and administrative staff and big buildings that you are paying for.
So mathematically, life insurance is a bad bet (it's good for the insurance companies, bad for you). But it's a GREAT instrument for making sure that you can provide for loved ones in the event of your demise. And competitive pressures keep the prices of insurance relatively "fair", so in general, I'd say that life insurance is "worth it".
If you have loved ones and count on an income to pay THEIR bills, get insurance.
wen u r about 2 die..ya its worth it...
and also wen u r the benificiary!!!
Life insurance is worth it if you have something to protect in case of an early death. It probably isn't a good "investment", but it isn't meant to be an investment. Ask yourself the question, who would suffer if I die? The answer might be "nobody" at which point life insurance is not worth it. The answer might be "my spouse and children", in which case, the next question needs to be "for how long?" and "how much would make it better?" A good insurance agent (which might be hard to find) or financial planner (which might be hard to afford) can help. For most people, some amount of some sort of life insurance is worth it.
NO! Dont Do It!!! Life insurance is a suckers game.
I work for an insurance company. Life is our most profitable line. Why? Because odds are good that you will live a certain number of years based on your risk factors (smoking, histroy of heart problems, ect...). We increase premiums based on these risk factors.
Unless something tragic happens and you experience an early death, life insurance will be a poor investment for you. Take the premiums you would have spent and invest them in a large cap growth mutual fund.
yes it is, only if u care about loved ones.
Yes life insurance is worth becasue now a days you don't know what will happen to you and you don't have the gurantee your life will be safe so once you are insured then what ever happens to you the money what hd gone for your insurance will be benefited to the people of ur own family