Hello I’m 40 female in great health but broke as hell. How much would $30/mo for life insurance come out to upon my death? I rent and have zero assets and zero debt except student loans. I don’t want to spend more than $30. Is this realistic? Any suggestions on a plan like this?
I’m a loser hoping to leave some money behind
byu/MorddSith187 inInsurance
Posted by MorddSith187
5 Comments
Something is better than nothing. Call a life insurance company and give them your amount and they will tell you what that will get you. Keep in mind at 40 you will need to get a physical plus a nicotine check, not sure what other hoops you may have to jump thru. Based on those results will give you the amount vs payout for life insurance.
Don’t go term, get whole life. Term will pay out more for less, but if you don’t die during said term, you lose it all, no one gets anything. So while whole life will be less payout, it’s the better choice.
Good luck
Who would you be leaving money behind to?
Insurance is a pretty terrible investment vehicle – you would be much better off putting that money into a target date mutual fund. I suppose you may want to get some type of final expense policy to handle funeral expenses.
If you invested $30 / mo for the next 25 years you would end with $28,000 with only $9,000 being contributions assuming an 8% rate of return.
If you were able to swing $100 / month that turns into $95,000 with only $30,000 being contributions.
I would invest in market mirroring index like SPY or VOO instead. It’s simple to do and doesn’t require you paying anyone. And it sounds like you are looking for something like that instead of an insurance product.
Who are you planning on leaving money to?
You should be able to get a term life insurance for 20 years relatively cheap as long as you are healthy. This will cover your burial costs and help out family. I pay under $30/month for close to a million in coverage. This is through my work which probably makes it cheaper.