I'm 24.. is it wise to take out a 20 yr life insurance policy?

I'm healthy. They already quoted me $18.81 a month. The policy is for $250,000. How does this work?
Additional Details
Not married, no debt, no children

It is wise to take out term life insurance for 20 years if it meets your needs.

Term life insurance provides protection for the 20 year period. If you only need it for 20 years - great.

Once the 20 year term is over, if you are alive, you will have no life insurance. The policy will have expired.

Your policy may have a few options - convertiblity - which would allow you to convert it to permanent life insurance before it expires.

Also, renewability - can you renew your term life insurance policy for another 10 or 20 years before it expires?

These are things to consider before it's too late.

If you need the maximum amount of protection for the lowest cost, level term life insurance may be your best option.

It really depends on your needs. Are you married? Do you have or plan to have children?

It sounds like your premium is affordable. Before you make any changes, or cancel the coverage, make sure you have another policy in place, in case something happens to you and you become uninsurable.

Here is a complete rundown on how term life insurance works:

How It Works:

Term life insurance lasts for a specific number of years, usually 10, 15, 20 or 30 years. The most common terms are 10 years or 20 years.

Term life insurance policies pay the beneficiary the face amount of the life insurance policy if the insured person dies during the term of the policy. For example, a 15-year term life policy with a face amount of $250,000 would pay $250,000 to the beneficiary if the insured died any time during those 15 years.

Usually, term life insurance costs less than permanent life insurance.

At the end of the policy term, the insured is no longer insured, and a death benefit is no longer paid. Some term life insurance policies are renewable, or can be converted to permanent life insurance.
Term Life Insurance Has Three Standard Features:

Level
Usually, the annual premium for the policy paid by the insured stays the same each year. The face amount of the policy also stays the same. Level term life insurance policies can usually last up to 30 years.

Convertible
Before the end of the term for the policy, the life insurance policy owner may be able to convert the term life insurance into a permanent life insurance policy. The owner usually has a specific number of years during the term life insurance policy to convert the policy. The premiums usually increase for the permanent life insurance.

Renewable
Term life insurance policies that are renewable offer the owner the option of renewing the life insurance policy at the end of the policy term, up to a specific age limit (usually age 65 or 70).

For example, a 15 year policy may be renewed for another 15 years. If the policy is renewed, a medical exam may be required. The term life insurance premium will usually increase when the policy is renewed.

I hope that helps! Best of luck to you.

Honestly, the younger you are when you purchase Life Insurance, the better it is.

Term 20 Insurance is a protection against what might happen in the next 20 years. And the most important feature for you is to find out if it is CONVERTIBLE. This feature gives you options to convert or change it to a permanent policy in the future, because you may incur debt; you may get married; you may have kids. So what if none of this happens for 5 or 10 years? And when it does, you apply for Insurance and suddenly, you are uninsurable? How will you protect your family's lifestyle then?

An alternative is to spend a little more, and buy an Universal Life Insurance Policy. This is what I call "Insurance for Bullet-Proof People". You know the ones who say they will never die, or it couldn't happen to them? This is their Insurance. If you die, You're family is taken care of; if you don't die, you could be taken care of with a Tax Free Source of Income. Let me explain.

Your premium would be higher than a Term Policy, but you would have an Investment Portion of your premium growing Tax-Deferred inside your Insurance Policy. Then, when you want to retire, take your policy to a Bank and get a loan for up to 90% of the cash inside. You use the Cash inside as collateral, and now the Loan is a Tax Free Source of Income for Retirement in combination with things like a pension and RRSP's.

I do this every day for my clients...

Ok, first, don't buy whole life (AKA PERMANENT) insurance. Yes, it has a savings plan, but you only earn 3-4%, and NO money goes in for at least the first 3 years. Term insurance is the way to go. And as far as being 24 and healthy, what happens if tomorrow you run off to Vegas, get married, and then find out you have a condition that would make you uninsurable(and may even be fatal?). If you have insurance now, it takes care of that problem. Buy term insurance now (from a company that does NOT sell whole life) and invest money in a Roth IRA or mutual fund that makes 10-12%. That is your absolute best bet. Contact me with questions.

You are talking about a 20-year level term policy. It is very wise, even if you don't think you need it now. Circumstances change. The longer you wait to get it, the higher the premium will be.

The two answers are both good - you should not buy term assurance unless you have family to provide for or debts to protect your family from being liable for, or some other large liability arising on your death (such as being in a business partnership).

If you do need this protection the younger and healthier you are now the cheaper it will be - and later on you may be asked for an automatic medical.

it is alway a good idea to have the insurance early on and lock it for 20 years. just ask yourself, can you afford 18.81 a month? if you can then go for it.

Are you married, do you have children, are you in debt?

If something should happen to you who would cover your funeral expenses and take care of your children?

What's the POINT of the insurance?? I don't get it?

Life insurance is a TOOL. You need a GOAL, to decide if you should get it. I don't see any goal needed.

BTW, if you DO get it, you shouldn't go for a ripoff monthly payment - about a third of that payment is a monthly service charge. If you paid it in full, it would be about $150 a year.

At 24, you do not need life insurance unless you are a married homeowner or a parent.

http://www.nolo.com/article.cfm/objectId/8B3B468D-B586-4653-BCA59430C001C6D6/309/140/ART/

i think it is better to go for a whole of life policy. All that money you put in will be gone after 20 years.

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