Life insurance question ~

[DisneyMomma81]

I received this quote and wanted to get your thoughts ~ I'm almost 32, don't smoke, don't drink alcohol. I'm single, my kids are 13 and 10.

I have completed shopping the country on that life insurance for you. That is so responsible of you to look into this. Let me know if you want me to adjust anything. These quotes were ran for you at $500,000 tax free with a 20 year term. That would pay off the mortgage, final expenses, weddings, college, and then give each child about $680 a month for living expenses. It wont make them rich, but you would be definatly be helping off on the right foot as they start their lives. Each company has their pros and cons while underwriting your health and for their quality of permanent products you can convert to later if you wanted. We can talk about that in more detail if you would like. These prices are for the best health rating called Super Prefered.



American National Annual $235 Monthly $20.30

ING A $245 M $21..44

MetLife A $244 M $21.96

Ohio National A $220 M $19.03


I have a small policy though work *I'm a fed employee*

Thanks

 

[runwad]

Those rates look good to me. For comparison, I got a 20 yr term policy for $300k and I pay $286/yr of $23.88/mo from ING. I got it 7 years ago when I was 40. Non smoker, no medical issues, not over weight, married female. So your quotes look great to me cause you have more coverage, but then again you're younger. Hope that helps.

 

[candy0730]

I took out a $500,000 20yr policy at age 40 thru Harleysville for $390 per year. I am a non smoker, no health issues and married.

 

[wallawallakids]

Those rates look good to me as well. That is pretty standard pricing for preferred rating. The conversion later to full term life is always the expensive part. I have been debating doing it and it will cost me about 300/mo. (I also have a Super Preferred rating.) I probably need to just do it but it is so hard to justify the massive jump in price. (Of course my dad sold me my life insurance, and my brother also sells it and both have been on my case about the conversion!!!) Good luck. In all, I think they are excellent offers that you have.

 

[runwad]

Those rates look good to me as well. That is pretty standard pricing for preferred rating. The conversion later to full term life is always the expensive part. I have been debating doing it and it will cost me about 300/mo. (I also have a Super Preferred rating.) I probably need to just do it but it is so hard to justify the massive jump in price. (Of course my dad sold me my life insurance, and my brother also sells it and both have been on my case about the conversion!!!) Good luck. In all, I think they are excellent offers that you have.

I've never heard of converting to Full Term Life? I thought the whole purpose of "term" was a certain amount of time, making it cheaper? With the thought being at the end of the term you shouldn't need the death benefit because you should have your own savings account built up and or no dependents.

 

[lost*in*cyberspace]

Are you quoting the letter/email you received from your agent? I have to say, I would be hesitant to work with such an unprofessional agent (many grammar and spelling errors). You are being given inaccurate information about how far this money would go. I would like to know how your agent came up with the $680.00 a month figure. I also believe that $500,000 is not enough insurance if you are a single parent (don't know if you are or not).

When you do buy, make sure you do NOT make your minor children the beneficiaries of this policy (I hope your agent warned you about this). If you do, the court will have to appoint a guardian to manage the money and this can cost your estate legal fees. You need to set up a trust for the money with a trustee to manage it. It would be worthwhile to contact an attorney; the money will be well spent.

Don't delay taking care of this!

 

[tzolkin]

I've never heard of converting to Full Term Life? I thought the whole purpose of "term" was a certain amount of time, making it cheaper? With the thought being at the end of the term you shouldn't need the death benefit because you should have your own savings account built up and or no dependents.

This is exactly correct. I just took my life insurance exam and I am assuming the poster means "whole life" since there is no "full term"

If that's the case, I would highly recommend NOT converting to whole life. If you really still need life insurance, get another term policy (for way less than $300/month) and invest the difference so you will have some money saved up when that term runs out.

 

[RitaE]

This is exactly correct. I just took my life insurance exam and I am assuming the poster means "whole life" since there is no "full term"

If that's the case, I would highly recommend NOT converting to whole life. If you really still need life insurance, get another term policy (for way less than $300/month) and invest the difference so you will have some money saved up when that term runs out.

Term policies do sometimes come with a conversion clause. It is generally extremely expensive to convert them at the end of the term. Really the only people who would consider it are those who can no longer obtain life insurance due to health or age issues.

 

[tvguy]

Sounds like a bargain to me. I pulled my records back 25 years, and DW and I were paying more than that each for $500k coverage back then. About $80 a month each now that we are 55+.

 

[mikehn]

These quotes may change after your exam results come back

 

[ceecee]

My DH who is a financial advisor doesn't llike the whole life policies. I do have one (very small) that my mom got for me as a child. I now have a term policy which we plan on keeping until DD is of age and we have savings for all else. Isn't the point of life insurance to not leave your family in debt with bills you have (mortgage, etc)? To care for minor children (we have a trust for that that we have funded with most of our savings, investments etc) and of course maybe your funeral expenses?

 

[tvguy]

My DH who is a financial advisor doesn't llike the whole life policies. I do have one (very small) that my mom got for me as a child. I now have a term policy which we plan on keeping until DD is of age and we have savings for all else. Isn't the point of life insurance to not leave your family in debt with bills you have (mortgage, etc)? To care for minor children (we have a trust for that that we have funded with most of our savings, investments etc) and of course maybe your funeral expenses?

I have never run across a financial advisor that likes whole life policies. I hear they are the second most profitable type of insurance after travel insurance for the insurance companies.

Yes, the things you list are reasons for life insurance. My mom dropped all her life insurance when she retired at age 62. But she had no debt, and more than enough in savings to cover her final expenses. However, a few years later she did purchase a long term care policy with a life insurance component. She spent the last year of her life in a board and care, so it was a wise decision. It is something I am looking at now, dropping straight our life insurance and picking up long term care insurance with a life insurance component.

 

[amcnj]

You can also stagger 20 year term policies, or add another later on to carry you to retirement age.

 

[wiigirl]

Sounds like a bargain to me. I pulled my records back 25 years, and DW and I were paying more than that each for $500k coverage back then. About $80 a month each now that we are 55+.