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Violet Said:

Any disadvantages to having two (20 & 30 yr) term life insurance policies for half the amount each?

We Answered:

I don't see a significant disadvantage. I have clients who do this a lot. The only disadvantage being if you need both policies beyond 20 years. Then the premium on the 20 year term will start increasing in year 21. However, as you get older you need less coverage in most cases so it might not be an issue.

Arlene Said:

LIFE INSURANCE - 5 yr term or 30 yr guaranteed term? Please read extra text before answering! Thank you :)?

We Answered:

You have the wrong perspective.

Let's say that you take out a 5 yr term today. You are in excellent health (today). But in five years, you develop health problems. In the worst case scenario, you cannot afford to pay for the new premiums to keep the existing policy (after the 5th year); it is difficult to afford (or qualify for) a new policy; and you cannot afford (or not allowed) to convert the existing policy to some form of permanent insurance.

Buying a longer "term" simply means capturing a longer price cap to your cost of insurance.

Danielle Said:

Term Life Insurance at age 21?

We Answered:

Insurance is a tool. You buy a tool, to get a job done.

Doesn't sound to me like you have a job you need this tool to work on.

You're probably better off just putting that money into an IRA.