[quote=FlyerInHi]I don’t have life insurance because I have nobody to give the money to.
But if you buy life insurance early, say in your 20s, is it cheaper and is the term longer?
Also, if you don’t go hot air ballooning now, but go later and die of the balloon falling to the ground, does the insurance pay up?[/quote]
FIH, I bought term life insurance from age 25 forward (to supplement the 3x pay coverage I had at work, which wasn’t much). When you’re younger, your term life premium typically goes up every five years on a level-term policy (ex: age 20, 25, 30, 35, 40, 45). At age 50, the term ends. If you want a 20-year level term policy (typically from age 50-70), you will need to submit to a physical exam (with the CARRIER’s chosen provider) and sign a release for your medical records, in order to get properly priced. Once all that is completed, you will be offered policy terms and premium levels …. or you will be declined. At age 50, I applied to and kept the same carrier I had since age 25, but you are free to make application with other carriers.
If you answer that you do NOT go hot-air ballooning (or skydiving) on your application for term coverage (your premium was priced for a non-ballooner/skydiver) and then you later die in a ballooning/skydiving accident, your carrier will not pay out. If you answered that you DID go ballooning/skydiving on your app for coverage, the premium offered you will reflect that preference OR your app will be declined (depending upon carrier).
If you don’t have any dependents who will be your heirs, then you probably shouldn’t bother with paying life insurance premiums. Whoever will settle your estate will not be personally liable for any debts you leave behind that your estate cannot pay, and, in any case, life insurance proceeds are generally not part of your estate.
Please consult an estate planning attorney on this issue as I am not giving “legal advice” here.
