Hi egmail,

While Michael will no doubt offer you a well-conceived answer, let me offer a couple of quick reactions for him to work off of.

First, before purchasing life insurance, the first question should be for whom do I need my life insured for? If you are single with no dependents, as most 20 y/olds are, then its likely that the answer to this question is, "no one". Without a tangible such need, you would be better off using the funds spent on life insurance to invest in instruments promising a greater long-term rate of return.

More generally, one should ALWAYS be wary of purchasing a financial product from a party who makes their living by selling that product. Most reps are perfectly nice people, but their incomes are based predominantly on insurance policy commissions.

The Roth IRA is excellent advice, especially if it's invested in something designed to maximize your returns over the long haul, such as an equity index fund. The Bank CD advice is iffier. Some sort of short-term savings account is a good idea, but a CD would incur penalties if you needed to access the funds. I would look more towards a rewards checking account or high-yield savings account instead.