I need new life insurance...

[ruadisneyfan2]

I've had a very plentiful life insurance plan through my employer, a hospital. I've been working there for 23.5 years. I got to thinking today how if I died suddenly, I'd be covered just fine. OTOH, looking at so many people with cancer, I figured if I ever did get cancer, chances are I wouldn't still be a hospital employee at the time of my death therefore it's really not covering me fully. After all, who knows anyone who has passed away due to cancer, and still is considered an active employee at their job?

I don't even know where to start looking.
We bought dh's policy like 15 yrs ago (I don't even recall where the actual policy got to.)
I'm usually very organized with a large file cabinet but for some reason when the kids were babies I kind of lost all those organization skills.
They do still debit our checking account monthly and I recall the name but I digress. I suppose a call to them would be a good start.

Which life insurance company would you recommend?
Any tips/advice would be appreciated.

 

[Ladygoldenhair]

We have dealt with Western Southern for decades. Not sure what their latest offerings are. We have one through the credit union and AARP too.

 

[APiratesLifeForMe2]

Have you spoken with HR? There may be options to take the policy with you when you leave or an option to purchase additional insurance without a physical. This would be the easiest and presumably least expensive route so start there first. Second, there are so many life insurance companies and each has it's own set of rules and eligibility /pricing. I would talk with an agent who represents many companies to really try and compare rates.

 

[amcnj]

I guess the first thing is to decide what type of insurance you want. A term policy or such as whole-life that builds value. Term is less expensive, and there are various terms, like 10 year or 20 year, wherein your yearly cost stays the same for that number of years. So one option is a term policy to cover the number of years you feel you will need insurance (like till a mortgage is paid off, kids are out of college, etc) and invest the difference between the term cost and the higher cost of a policy that builds value yourself. Some feel they would never save the difference so use the life insurance policy as forced savings.

You can search on-line for insurance and get quotes. You can also search for ratings of the various insurance companies and select one of the better rated ones if you so desire.

 

[nalajms]

Please note that I am not an insurance agent, but work for a firm that does insurance research.

There may be options to take the policy with you when you leave or an option to purchase additional insurance without a physical. This would be the easiest and presumably least expensive route so start there first.

This would be the easiest option, but likely the most expensive. I'm assuming you have a group life insurance that covers 1-3x your salary, and capped at some limit for higher paid employees. There's no underwriting involved so the insurer assumes standard health for the group.

If you're in good health, find an agent and apply for an individual policy. The more health info they look at, the more likely you'll get a cheaper rate. I went through my auto/homeowners, Nationwide. They had a guy that specialized in life. If you get a term policy, most will show you premium for a bunch of carriers, not just their own. If you go for a permanent policy, the list could be just 1 carrier.

A few things to consider:
1. If you buy a term policy, look and see if there's an option to convert it to a permanent at a later date like before you're 65 or end of the term period. You may find yourself un-insurable at a later age due to health. This would give you an option to buy a permanent policy without a health review.
2. Ask about the policy's accelerated death benefit features. Some policies allow you to take money out of the death benefit if you are terminally ill.
3. Term versus Perm. Ask yourself if you need the savings aspect of a permanent policy. If you only need the insurance coverage and have money saved for emergencies, most likely you don't need a permanent policy right now.

You may also want to consider a Critical Illness policy. It's more popular in Canada. It pays a lump sum if you get certain health problems like cancer, heart attack, stroke, etc.

Good luck!

 

[tvguy]

I guess the first thing is to decide what type of insurance you want. .

Depending on your age, you may also want to consider a policy that is a combination life insurance and long term care policy. My mom switched to a modest life insurance policy, $75,000, that also would pay up to $300,000 in long term care costs.

 

[crisi]

Also consider what you want life insurance FOR.

We haven't carried it in years. If I die, my husband gets my 401k contributions and there is enough savings to see him through. If he dies, ditto. We'd get some survivor benefits for the kids while they are minors through social security - and then the kids would be adults. There is enough money out there to bury each of us and each of us is capable of earning a living. For us, there isn't really any reason to carry life insurance.

 

[lost*in*cyberspace]

Also consider what you want life insurance FOR.

We haven't carried it in years. If I die, my husband gets my 401k contributions and there is enough savings to see him through. If he dies, ditto. We'd get some survivor benefits for the kids while they are minors through social security - and then the kids would be adults. There is enough money out there to bury each of us and each of us is capable of earning a living. For us, there isn't really any reason to carry life insurance.

And what happens if you both die? Who will pay to raise your children? Personally, I think anyone with minor children should have the largest policy they can afford. I have had two close relatives unexpectedly die, leaving minor children. Thank goodness they each had large life insurance policies. Last note, NEVER make a minor a beneficiary of a policy. Set up a trust for your child, name a trustee, and make the beneficiary the trust.

 

[tvguy]

And what happens if you both die? Who will pay to raise your children? Personally, I think anyone with minor children should have the largest policy they can afford. I have had two close relatives unexpectedly die, leaving minor children. Thank goodness they each had large life insurance policies. Last note, NEVER make a minor a beneficiary of a policy. Set up a trust for your child, name a trustee, and make the beneficiary the trust.

Yes, those with minor children need life insurance. Retired folks with no debt and money in the bank may not.

 

[crisi]

And what happens if you both die? Who will pay to raise your children? Personally, I think anyone with minor children should have the largest policy they can afford. I have had two close relatives unexpectedly die, leaving minor children. Thank goodness they each had large life insurance policies. Last note, NEVER make a minor a beneficiary of a policy. Set up a trust for your child, name a trustee, and make the beneficiary the trust.

I'll leave a significant estate behind if we both died today - and my kids are 14 and 15 with fully funded college funds - my parents would take them in and there would be ample money to support them through college and leave a trust available for them when they are 30. Plus, as minor children, they'd be entitled to social security survivor benefits.

 

[ruadisneyfan2]

I'll leave a significant estate behind if we both died today - and my kids are 14 and 15 with fully funded college funds - my parents would take them in and there would be ample money to support them through college and leave a trust available for them when they are 30. Plus, as minor children, they'd be entitled to social security survivor benefits.

I'm not in the same boat as you. We don't have tons of money that either one of us would be well off without the other one's income. We have equity in our home if we both died and our 401Ks but I would want them to have more than that.

 

[crisi]

I'm not in the same boat as you. We don't have tons of money that either one of us would be well off without the other one's income. We have equity in our home if we both died and our 401Ks but I would want them to have more than that.

In that case, insurance will make sense. I figured since you've been at the same job for almost 25 years, you probably didn't have little kids, probably had 401k savings and were probably starting to think about retirement - and its worth thinking about whether you need that extra bill in your life - or if you wouldn't be better off investing that money yourself.

 

[amcnj]

I'm not in the same boat as you. We don't have tons of money that either one of us would be well off without the other one's income. We have equity in our home if we both died and our 401Ks but I would want them to have more than that.

Some may need coverage for only a certain portion of their life, so 10 or 20 year term might be enough to get you through that period. But if you don't expect to ever have adequate resources for survivors to live on, then you might want to weigh the costs of something more permanent, versus what term will cost you over the entire timeframe involved. Term is much cheaper the younger you are, and it could still be cheaper in the long run if there is some age you feel coverage will not be needed. You have to decide what type of insurance works best for your situation. You might even find a combination of the two is best, using cheaper term to supplement the "lifetime" insurance you think you'll need decades from now, when term would be super expensive to renew. The future is tough to predict sometimes!

Also sometimes work policies that you contribute towards may be more costly to you than policies you could get on your own.

 

[ruadisneyfan2]

In that case, insurance will make sense. I figured since you've been at the same job for almost 25 years, you probably didn't have little kids, probably had 401k savings and were probably starting to think about retirement - and its worth thinking about whether you need that extra bill in your life - or if you wouldn't be better off investing that money yourself.

No, i've been at my job so long because I started right out of college & now in my mid 40s. Our boys are 17 & 13. I started saving for retirement around age 24 so there's a decent amount now. Still, I'd like more peace of mind when it comes to my kids.

Some may need coverage for only a certain portion of their life, so 10 or 20 year term might be enough to get you through that period. But if you don't expect to ever have adequate resources for survivors to live on, then you might want to weigh the costs of something more permanent, versus what term will cost you over the entire timeframe involved. Term is much cheaper the younger you are, and it could still be cheaper in the long run if there is some age you feel coverage will not be needed. You have to decide what type of insurance works best for your situation. You might even find a combination of the two is best, using cheaper term to supplement the "lifetime" insurance you think you'll need decades from now, when term would be super expensive to renew. The future is tough to predict sometimes!

Also sometimes work policies that you contribute towards may be more costly to you than policies you could get on your own.

I'm looking at term and deciding between 10 or 20 years. I'd like to have it until our mortgage is paid off and our kids are done school and independent, which these days are often later than 23 like I was.

 

[nalajms]

I'm looking at term and deciding between 10 or 20 years. I'd like to have it until our mortgage is paid off and our kids are done school and independent, which these days are often later than 23 like I was.

I would shop for 10, 15, and 20 year term. Have the agent run the numbers for a bunch of companies. At age 40, the price difference between 10 and 20yr term could be very big. Also remember the quoted price is usually for the best health. Very few people get the best preferred rate.

10 years would get your youngest through college. 15 yr would get you to the age for SSI.

While DH and I both have a good amount in 401k and savings, I wanted our life insurance to pay off the mortgage, plus fully fund the kids' (4 & 1yo) college, and a bit extra. Yes, if one of us dies we can survive on 1 salary, but we'd have to change our lifestyle, ie less vacations, less music/gymnastics classes for the kids, and likely downsize to a smaller house. In addition, the survivor would likely not be able to fund their retirement going forward.

 

[crisi]

I would shop for 10, 15, and 20 year term. Have the agent run the numbers for a bunch of companies. At age 40, the price difference between 10 and 20yr term could be very big. Also remember the quoted price is usually for the best health. Very few people get the best preferred rate.

10 years would get your youngest through college. 15 yr would get you to the age for SSI.

While DH and I both have a good amount in 401k and savings, I wanted our life insurance to pay off the mortgage, plus fully fund the kids' (4 & 1yo) college, and a bit extra. Yes, if one of us dies we can survive on 1 salary, but we'd have to change our lifestyle, ie less vacations, less music/gymnastics classes for the kids, and likely downsize to a smaller house. In addition, the survivor would likely not be able to fund their retirement going forward.

That's what we had when our kids were your kids ages. As their college funds grew and the mortgage got paid off and our 401ks grew, it became less and less necessary for us to have the insurance bill. Making sure a 14 year old gets provided for through college is a much smaller expense than making sure a four year old is provided for through college.

 

[Jeff_G]

I've had a very plentiful life insurance plan through my employer, a hospital. I've been working there for 23.5 years. I got to thinking today how if I died suddenly, I'd be covered just fine. OTOH, looking at so many people with cancer, I figured if I ever did get cancer, chances are I wouldn't still be a hospital employee at the time of my death therefore it's really not covering me fully. After all, who knows anyone who has passed away due to cancer, and still is considered an active employee at their job?

We have experienced this very scenario with a family member. Cancer can take you in as little as a few weeks, but on the other hand you can go several years while being out of work before passing from it. You could also be laid off then end up with a terminal illness. After being diagnosed with a terminal illness you cannot get insurance without a step cost if at all.

My advise figure out what you need dollar wise then get a term life insurance policy outside of work for a term as long as you need it to be out of debt including you house.

 

[crisi]

We have experienced this very scenario with a family member. Cancer can take you in as little as a few weeks, but on the other hand you can go several years while being out of work before passing from it. You could also be laid off then end up with a terminal illness. After being diagnosed with a terminal illness you cannot get insurance without a step cost if at all.

My advise figure out what you need dollar wise then get a term life insurance policy outside of work for a term as long as you need it to be out of debt including you house.

That has really changed under the ACA. We were fortunate to live in a state with some of the ACA provisions already in place under state law when my brother in law had terminal cancer. His out of pocket max was $6k a year, and his insurance (he was single - so it was just him) was less than $4k a year. He burned through his out of pocket max on the first chemo treatment - but it total, for millions of dollars of treatment over two plus years, he paid about $30k in insurance and medical expenses.

 

[supersnoop]

Also be aware that a terminal illness can eat through your life savings very quickly. If it comes down to using your savings to extend your life or leave it to support your family; well, I'd rather have the life insurance in place to make that an easier decision.

 

[HM]

My workplace offers Cancer policies. Do you have that option?