I’ve been reading so many articles and I’m feeling pretty lost on which type of insurance I should get or who to go with. Maybe someone can help me figure it out? I’m 31 years old, 5’5”, 200lbs, in generally good health, but there’s this chronic disease in my history that’s a bit confusing. One test showed I had it, another said I didn’t. I need a third test in a few years to confirm. I’m a non-smoker, no kids (don’t plan to have any), but I have nieces, nephews, and family who I’d want to benefit after I pass. My current income is $70k but it’s going to go up significantly next year. I’m also interested in borrowing against the policy. Any advice would be great.
It really depends on what you want. Term life gives the biggest death benefit for your money, but it’s not as flexible as other options. Whole life is more straightforward. You pay into it for a set amount of time and then don’t have to anymore, plus you can borrow from it. The amount you get from it doesn’t change. Then there’s indexed universal life (IUL), which ties to the market. It adjusts with inflation so $100k now won’t be worth the same later. You can adjust your death benefit and even invest in it, but be careful not to overdo it because it’s still insurance at the core. VUL is another option that’s similar but riskier because there’s no limit to how much you can lose or gain, while IUL protects you from losses. It’s mainly about the tax advantages.
If you don’t have dependents, you might not need life insurance at all. If your goal is to leave a legacy, investing might be a better route. For something like infinite banking, you’d want to build around your increased income. It really depends on how much you plan to use the policy in the short term. At your age, VUL could be a good option. I had made a table to help someone else decide… let me know if you want more info!
Since your health is a bit uncertain, you might face some challenges getting insured until the results of your medical tests are clear. Also, what’s your budget for life insurance annually? If the insurance companies decide to offer you coverage, you might have to deal with higher premiums due to your medical history. I’d recommend finishing all your medical tests and getting a clear picture of your health before diving into this.
Are they thinking Barrett’s esophagus or maybe ulcers? If it’s either of those, you might still be insurable. If it’s something more serious, you may need to wait until things are more definitive before getting insured.