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Insurance Question: What type of life insurance policy should I get?
I’m 22 y/o single male with about $100K debt between school loans, car payments and general credit card debt. I make about only about $50K/ yr as of now but I want some sort of policy for my parents to cover my death expenses and debt should I die in the near future. Can anyone help me out with deciding what type of policy to get and how much death benefit I need?
I’m leaning toward 10 year term insurance with a death benefit of around $200K but would like some 2nd opinions. This is all subject to change of course once I have a family of my own.
You can get a small term policy to help your parents cover your final expenses. The 10 year term product will be good because you’ll probably want different coverage in future as you get married, have children and make more money.
One thing to note: Unless they cosigned on the loans your parents will not be responsible for your debts. Your creditors may try to trick your parents into giving them money but your debts die with you. If they did cosign then the policy you describe above sounds like a very smart and thoughtful gesture.
Defiance, Ohio/The Icarus Project @ Death By Audio
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