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Confused about Life Insurance Plans...HELP!!?

I want to get a life insurance plan for my family, My boyfriend and I are 22 years old. We have a 4 year old son. Im so confused about what kind of life insurance plan i should go with. Whole Life or Term. I was looking up whole life on Gerber Life Insurance and for $25,000 it would be about $25 dollars a month. even though 25,000 isn't alot thats all i can afford right now. If i did this can i increase the amount when i get financially secure? Also i read that Term life insurance is cheaper if i did go with this would i be able to change it to Whole Life insurance? Im so confused. which plan is right for a young family? If you know of any good Companies please let me know.

Public Comments

1. If you and your boyfriend are in good health and your heights and weights are within the normal range I would look to purchase a term policy for each of you from a major carrier. I would compare the rates of a Yearly renewable (YRT) term, a 10 and a 20 year $500,000 policy(at a minimum) for each of you. Companies will shy away from over insuring you based on income and moral considerations. Compare the rates using 10 and 20 years as benchmarks to see what the total cost of each is for 10 and 20 years. (ex. 10 year term $200/yr x 10 =$2000 and re-qualified at age 32 premium for a 10 year term might be $400/yr x 10 = $4,000. $2000 + $4000 = $6000 for the first 20 years or about $300/yr for the first 20 yrs.) The YRT will start out very low but will increase each year a small percentage on the policy anniversary. But, even though the YRT premium will increase each year it might still be the best plan for you over the first 10-20 years. Most companies will allow you to convert (exchange) your term policy for a permanent plan of life insurance, without an exam for a contract specified period of time, to a plan like Universal, Variable Universal, Interest Sensitive Whole Life or plain vanilla Whole Life. Remember, Insurance companies charge premiums, essentially, based on health and current age then apply that number to the amount and term (1,10,15,20,30) years for the policy. Furthermore, look to an agent that can do the searching for you as he may have greater access to and more knowledge of plans that can accomplish your goals. I would stay away from "captive"agents as they can only sell their company's product, makes them biased and may not be the agent to provide the plans for you. Most all companies broker their insurance products so working with an agent that is not "captive" and has that latitude should benefit you. Look to companies like Transamerica, ING Realistar, and West Coast Life, for example. All three have solid ratings from the major rating agencies and offer term insurance that may satisfy your needs. Good luck and look beyond Gerber.
2. If $25/month is a stretch for you then I'm going to go out on a limb and say that it doesn't sound like you're in a really high tax bracket and that a whole life policy probably isn't suitable for you. A $25,000 policy isn't going to raise a 4 year old as it would only replace about $80/month in income. For $25/month, assuming you're both healthy and don't smoke, you could BOTH get a $100,000 term policy that would last 30 years at that same premium. For $30/month you could both do $150,000 and for about $38/month you could both do $250,000.
3. Forget Gerber. There are much better policies available. Go to Yahoo Personal Finance and read the life insurance section. Life insurance policies are generally issued separately on each person - not as "family plans." You don't need life insurance on your child. The purpose of life insurance is to replace your lost income for those who depend on it - so you and "dad" are the ones who need it. That should be your priority. I also recommend that you buy a copy of "Personal Finance For Dummies." It's an excellent book that covers the basics of life insurance, among many other important topics.