Hey everyone! I’m 23 years old and I really don’t know much about life insurance. I need to get tested for a cancer gene mutation, and my doctor wants me to secure life insurance before the genetic testing. If I end up testing positive for the gene, I’d like to have life insurance locked in at a lower rate. I have no clue where to start, what amount of life insurance should I go for? How long should the policy be? Which companies are the best? I’m not married, don’t own a home, have no kids, and I’m still in grad school. Thanks so much for your help!
I’m a life insurance underwriter and here’s my suggestion: Go for a term policy that allows you to switch to a permanent plan later. Aim for around 30 times your current income, trust me, it sounds like a lot, but it’s not. Best of luck!
@Aki
This is really helpful advice!
What state do you live in? I don’t sell insurance, but I’m curious because some states protect people from having genetic testing used against them in life insurance applications.
My take on life insurance is this: Buy as much 20-year term as you can afford. Just make sure that it includes the option to convert to permanent insurance during the 20-year period. Don’t just pick based on price; choose a company that will still be around and has good permanent options.
I can’t give specific advice right now.
Consider getting a convertible term policy that maximizes your insurability.
I can’t share specific details at the moment.
Given your situation, I think a whole life policy might be the best fit. You should also look into a separate cancer policy for lifelong coverage if you test positive for the mutation. While whole life insurance can be pricier, it’s worth considering carefully.
Ultimately, you should get several quotes and chat with different agents to really understand your options. Just a heads-up: processing your medical records could take about three weeks, so it’s a good idea to secure coverage sooner rather than later.
I can’t provide specific information right now.
I’d recommend being careful about taking advice here. Many people may not have the right qualifications to give you solid advice. That’s why it’s important for agents to be licensed to sell life insurance; it’s for your protection.
If you’re concerned about a cancer gene, you should definitely look into whole life policies. Term insurance ends after a set time, which might leave you uninsurable later. At your age, and assuming you’re healthy, whole life will likely be more affordable now than it ever will be.
There are other permanent insurance options that might be better than just a term policy, considering your worries.
When you apply, they will check the medical information database. If there’s anything there about you being tested for cancer, it might be a red flag. Remember, gene testing is different from cancer testing, so you might be fine.
If you want something inexpensive, look for a convertible term policy with living benefits, so you can access part of the death benefit for critical care. You might also want to explore a permanent policy that builds cash value over time. For instance, I have a policy for my kids where I pay $10K a year for ten years. It’s projected to grow from $300K to $500K in ten years, and up to $900K in twenty.
@Alden
That’s not how the MIB works. If the person has never applied for individual life or disability insurance, there won’t be an MIB record.
There could be other data sources showing your situation, but MIB won’t have it.
@Austin
You’re right…the medical records will be the main thing.
@Alden
It’s crazy how insurance companies seem to care only about making money, similar to how our government works with taxes.
Aeron said:
@Alden
It’s crazy how insurance companies seem to care only about making money, similar to how our government works with taxes.
Making money is fine…But insurance companies take on the risk you pass to them. I believe they do care for their clients while they’re alive. With a policy that includes critical care, they can pay out early, giving you funds for long-term care. How is that not caring? Plus, any money in the policy grows tax-free. It’s a product that gives me peace of mind.
@Alden
I work in this field, and I know the struggles. There are a lot of shady practices that make people skeptical about these products. Like how they say a policy is valid until you’re 100, but very few people live that long. The odds are against most people with whole life insurance. Switching from term to whole life is only doable if you can actually afford it.
Aeron said:
@Alden
It’s crazy how insurance companies seem to care only about making money, similar to how our government works with taxes.
Welcome to the reality of it all…
I’m a life agent. You probably shouldn’t worry too much since gene testing is really different from testing for cancer. You’re at a great age to think about getting the best coverage. I recommend a cash value life insurance policy with long-term care benefits. Your premiums depend on your health, habits, and age. If you’re healthy, have low-risk habits (like not smoking or skydiving), and are close to 18, your premiums will be low and they won’t ever go up!