Ask Terry Questions Life insurance at age 24

Life insurance at age 24

By Terry Savage on January 24, 2017 | Insurance & Annuities

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.



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