Life insurance

[Dep676]

I was wondering about others out there with life insurance? Like rates and coverage amounts etc. I am paying 65 a month for a whole-life 150,000.00 policy. I am looking to lower that payment and possibly up the amount. I know there are term-life policies cheaper. I am looking to stay with a whole-life policy.

Thanks

 

[Swass]

Why Whole Life?

Just curious as to why you want to hold on to a whole life policy? The cash value you earn won't be much, the only advantage is that you guarantee insurability. You would be much better off getting a 20 year term(depending on your age) and saving the money yourself in a different money vehicle. The cash value you earn on your whole life will not make you as much money as some other conservative form of investment. If you are worried about losing insurability due to sickness at the end of a term policy you can always convert the term policy to a whole life, but there may be limitations. Don't let your insurance agent blow smoke about the advantages of whole life and definately not about variable life products. The reason they try to sell you these is that they get a huge first year commission on these products.

 

[Dep676]

That's why a whole-life I guess. So I don't have to worry about 60 or 70 and having the policy run out. Then have to get a new one and pay out the rear then because of my age. I am 30 soon to be 31 in a couple of weeks.

 

[Swass]

You can double or triple your coverage for the amount you are paying right now, when you get to be in your 50's - 60's (where a 20 yr term would put you) your financial position will be very different (probably for the better) paying more later would not be such a problem. Remember that you can always convert if you get sick or find out you are dying. My .02.

 

[flydog]

philiplane is right. i used to sell insurance too and other than term most insurance is a rip off. Insurance is to take care of the obligations he mentioned. When you are 60 and over you probably wont have kids to raise, a mortage, etc. When you are retired your pension, savings, etc are largely unaffected by your death. At that age you should worry about long term care and disability not life insurance

 

[Swass]

If you need help with any of these I own one of the largest employee benefit brokerage firms in the midwest.

 

[Swass]

It all depends on what you can afford, if you can afford it go with the 30, it's garaunteed for the 30 yrs, your rates will not go up during that period. Another key is to go with a company that is rated "A" or better. This has to do with cash monies that the company is liquid and so forth and also has to do with re-insuring and all that other dry and boring stuff PM me if you have any other questions.

Remember that the earlier you lock the rate the cheaper it will be.

 

[banned username 2]

I was wondering about others out there with life insurance? Like rates and coverage amounts etc. I am paying 65 a month for a whole-life 150,000.00 policy. I am looking to lower that payment and possibly up the amount. I know there are term-life policies cheaper. I am looking to stay with a whole-life policy.

Thanks

I am a 35 year old male, non-smoker and I am paying $340 a year for $500,000 coverage, 20 year term.... From what I have seen this is a very good rate... Just got the policy about 2 months ago...

 

[TDTURBO]

I just bought a 20 yr term 500K policy, I am 39 y.o. smoker, skydiver, scubadiver. Now I'm thinking I got ripped off.

I would save 30% or more if I quit smoking, but I would be miserable.

 

[tarp]

And folks while you are comparing prices watch out for the "pilot" clause that is in most non-aviation policies. I had a "friend" who was a new agent bird-dogging me around trying to get me to buy from him. I pointed out that I was a CFI. He could feel the sale slipping away as he showed me the "dangerous activities" clause which I remember had things like skydiving, mountain climbing and yes, it was in there, piloting aircraft. He could quote me a price with the clause in there and then my knowingly flying a plane would remove my coverage or I could pay some ridiculous amount (like three times the original policy) to get "pilot" coverage. (I think he worked for Northwest something - the quiet company.)

The "earthlings" at most insurance companies still think we are flying open biplanes, wearing silk scarves and spending our time barnstorming around the countryside.

I'm with the others - buy term, don't over-insure and put the rest of the money in your investment portfolio. Buying whole life is just throwing money at the insurance company - and if you think you are getting "continuous" coverage, you should see what they did to weasle out of covering the medical bills of another friend who died of cancer - they've got lots better lawyers than you do.

 

[FalconPilot69]

For you insurance guys?

What about whole life? What can a 34 yr old, non-smoker in good health get? What are the differences between whole and term life?

 

[KlingonLRDRVR]

I'm a 39 year old non smoker. I went through AOPA who uses Minnesota Lfe, great company, highly rated even in Minnesota which is over regulated and taxed. I'll save that for another thread. I have a $750,000 term policy 20 year level payment. I got it last year and it costs me $772.50 plus $82.50 premium wavier for a total of $855.00 per year.

Since this is AOPA backed they are very pilot friendly. Word of advise is to get a good policy while you are young without the standard aviation exclusions. Do so before you take up "dangerous activities" that may preclude insurance or make it cost prohibitive. In todays society of two earner incomes to make a go of it, you can not afford to skip insurance if you are married with kids.

KlingonLRDRVR