I feel that I should be getting life insurance. I have a couple of health issues (high blood pressure, lung problems from military service) and there is really no back up plan if something were to happen to me.  I can go through USAA to get insurance, but most companies are offering whole life insurance and term life insurance.  From what I have read, in my case (27 y/o) term life insurance would be my best bet.  

Can anyone provide me with information so I don't end up playing for something I don't need.



Thanks,



Douglas

I will tell you what I did. I'm 31 married and we are looking at adopting. I have a 30 year term life insurance policy that covers all of our debit +100k for final expenses and such. Once we have a kid(s) we will be adding 10 years worth of my income in insurance for 20 years. I make much more then my better half and she has the plans in place in case something happens to me.

If something happens to my SO. I make enough money to cover this kids if needed. Also We do have a 250K policy for her. This allows for final expenses and all debit + and a few years of daycare if needed.


The plan once we are 60+ is to not have any policy we are well on our finical planning path and will be able to cash flow all of the final expenses plus some long term care insurance if needed.

Term Life is definitely the way to go 95% of the time, but you skipped over some information needed.

Are you married (any plans to be)?  Any children(or planning to have)?  Their ages?  Does anyone else rely on your income?
Term is relatively cheap.  You will hear things from insurance salesmen about how Whole Life will be an "investment," ignore it.  If you want to invest (and you should) you will do much better with purchasing Term and investing the difference in premiums.  

Basic Insurance Rules:
1. Never mix insurance and investing.
2. Only insure only for what you can not afford to replace. This applies to all types of insurance.  For Life you are insuring your potential income stream to be available to your dependents.

Here's an example:  I personally have no life insurance other than what is given to me at no cost from my employer, the NRA and my credit union.  I have no children and plan to never have any.  My wife is the only person who could possibly depend on my income, however I have a positive net worth with liquid assets that could cover debts including my mortgage.  If my wife is not burdened with the minuscule mortgage debt she will live just fine on her income alone, in fact she could handle the debt herself if necessary even without my separate assets.

The situation is completely different if you are married to a stay at home mom with 3 children from newborn to toddler age.  You are doing the right thing asking and reading about insurance before talking to the insurance salesman first.  If you decide that you need insurance you need to figure out how much insurance you need and how long you need that coverage (perhaps until retirement or until kids are out of college?).  I have no used the site, but I hear that term4life.com is very competitive.

on edti:
nikroft gave you a really good example of his real life situation and choices.  You may have other factors, but he pointed out several options and factors that you should be able to use to get your wheels turning in the right direction.

Need to know more about your life.  As for term vs whole, at your age, unless you have substantial income, I would say go with term.

As for how much, do you have a family?  Do you have debt?  Do you own a home and if so how much equity do you have?  My father in law sells insurance, his advice to me was buy as much as I can reasonably afford.  I have a wife and 5 kids, a house with very little equity, and an average debt level.  I want my wife to focus on raising our kids if something should happen to me, and not feel pressured to find someone to provide for them or shove the kids in our shitty public schools while she scrapes a living.  I carry $1.75mil on myself.  That should keep a roof over their heads, food on the table, and get the kids well on their way through college.

My dad died with a mountain of debt and a shitty term life policy that left my 60 year old mom with a mortgage and no cushion.  

If you don't have a family, I recommend you carry enough term to pay off your debts and cover funeral expenses so that your heirs(parents, siblings) don't have to foot the bill or deal with your creditors should you pass at a young age.  They won't be responsible for your debts, but the creditors are damn sure going to make them feel like they are.

 
As for my info, I am 27, married, with no children. We plan on kids sometime this year or the next. I am a junior in college and will be graduating next spring with the full intention to move back to Texas. (Where I was stationed during my service). Debt wise, our combined debt is roughly 60k, which includes vehicles, school loans, and the small (sub $500) credit card I have. We are renters so we have no home equity.  The plan once children are in the mix is that my wife will be a stay at home mom if we can afford it. My field of work school allow a good salary, but I am smart enough to not bank on that happening originated off the bat.  Currently, I work for the univeristy I attend, but being a student employee I do not qualify for benefits (thanks Obama (referring to max 32 hour work week))


Any other information that will be helpful just ask!


Thanks,


Douglas

Get a quote on convertible term. The convertible rider will allow you to switch to some kind of whole life policy in the future if you decide you want that (If you have kids you probably will).. Make sure that you up your coverage to no less than $750K when you have kids.