Should I get life insurance for my almost 18 year old daughter? What type do you recommend?
Insurance protects us against a loss of some kind - life, ability to work, a home or car. So it's important to know what loss you are trying to address regarding your 18 year old. Loss of life and paying funeral expenses are common concerns as well as financial stability due to a disability. And finally, not losing the ability to purchase insurance in the future.
The other important question is "what you can afford to pay?" Common mistakes consumers make are buying more insurance than is needed or what they can afford to pay.
Bobbie, if you are not comfortable addressing the questions alone, reach out to a local insurance agent in your area. Take your time with him or her, and find a product that meets your concerns/needs and is affordable.
Thanks for reachong out and I hope my answer was helpful,
Darius | 10.30.15 @ 17:47
HI Bobbie...without knowing more details it's hard to give you a definitive answer. I agree with the points made by Darius, and would reiterate his advice to you about seeking out a local insurance agent. I'll go one better though...seek out an independent insurance agent. They can shop the entire market of products, and can help you not only buy a policy, but construct a "plan of insurance" for you and your daughter that makes sense both for now and the future. | 11.04.15 @ 15:49
This is a fantastic question and what is needed to be known is what you are wanting to accomplish for your daughter? What is your purpose to get life insurance for your 18 year old? If the answer is just to have life insurance to cover expenses in the event of her unexpected death, then get a small policy of no more than $25,000. If the purpose is to help her have a source of money later in her life, then speak to an independent insurance agent who knows how to build and create such a policy that will generate income for her later in her life. There are many families and grandparents, who use a special type of life insurance that is created and designed specifically for that purpose so that the income generated can be used later in ones life, even replacing another retirement plan such as a 401(k) or investments in stocks or mutual funds. I can think of one example of a 20 year old college student who purchased a custom designed policy and pays into it for 20 years, using it as his retirement, and is expected to have enough money to live on the rest of his life by starting at such a young age. The younger one starts with this type of policy the more time it will have to accumulate more money that can be taken out later in ones life. Let me say that identifying a good advisor who cares more about how these are designed versus the commission they receive can be a challenge, but they are out there. | 12.09.15 @ 19:07
All I can tell you is what I did for my kids and you can decide if that works for you. I purchased whole life plans for my kids when they were very young. Why? Lots of reasons, but mainly to get them off on the good foot with a financial plan foundation that permanent life insurance. Whole life locks the rate in for life, you (they) own the policy and control it, the price can't go up, they can't take it away. It earns a safe return that doesn't go backwards when the market crashes or corrects.
I could keep going but I hope you get the idea. Whole life is a living plan that works for them while they are alive and provides when they pass, because while it does all these great things while they grow, it helps you if something happens. Mainly it allows you the time to grieve without worry about costs of services or missing work or settling debts. | 03.03.16 @ 08:06