I am 24 turning 25 in six months, i have life insurance through my employer but only for 30k. I have recently been thinking about getting life insurance but unsure if I should go with 20/30yr or permanent life insurance. What would you recommend for me to do? I am not a mother yet but do hope to begin a family with the next 3/4 years.

Terry Says:

Since you don’t have an immediate need for more than the “burial” insurance you have with your employer (and which you might not have if you change jobs), this is a good time to think about your budget and whether you are already saving for retirement.  I say that because you could purchase “permanent’ or “whole life” insurance, from a company like Northwestern Mutual, and build up a cash value for a future need, or for retirement.  That’s in addition to contributing to your 40l(k) plan at work, and/or an IRA.

Then when you have a child, you can buy inexpensive term insurance to cover the real need of funding a college education.  And presumably you will have a spouse, so he/she will buy term insurance as well.