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Old 05-12-2013, 01:53 PM   #19
King Sirex
Join Date: Aug 2002
Location: Toronto
Posts: 9,846
Originally Posted by daytona View Post
My insurance broker is going to offer me some options for term kids not married and little debt to worry about,no history of illnesses that runs in my family.Im going to probably choose 20 year term with a agreement of automatic renewal at the end of the term plus open options to adjust the policy.I can invest my money into other items that will generate more returns that what the insurance companies usually provides.If I decide to have kids I will change the term to a different policy.I want just make sure if I get into a serious accident or illness I be covered for the recovery and future medical needs.

A term life policy is for life insurance only. E.g. you have to die for payout. If you are not married and don't have kids, and have minimal debts, then a term life policy probably doesn't make sense.

What you probably need is a disability and critical illness policy (though most of the time you need to have life policy to get critical illness).

Usually "term" insurance is a barebones policy, and that is why its the cheapest. When its time to renew in 20 years, you wont have to do a medical test, but your premium will be higher.

Now if you are looking for something long term, in case you do get married and have kids, you might want to look into a whole life or a universal life policy. If you are young and healthy, the premium for one of these policies is very very low. As well, they also sometimes have cash surrender values, or investment options built into the premium.
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