life insurence

[curvaciouskitti]

As I have been trying to get my affairs in order because you never know what can happen. I have been looking into life insurence. After some research I came to the understanding that term life insurence was the best kind to get. What do you guys think? Does anyone have any words of wisdom or experience with this? Should I get a policy for 10,20, or 30 years? and How much should I get? Also when shopping for life insurence what would I expect to pay for a 30yr term life insurence policy of say ..250,000 or 500,000 dollars. I am overwhelmed by all of this DH and I are 31 and 34 and have one child with one on the way. Any suggestions from you financially savvy people, would be greatly appreciated.

[dczech09]

Term Life Insurance, Instant Quotes, Compare Online | IntelliQuote

This is a good life insurance calculator. You can enter information on here and get some rate quotes in seconds. You do not even have to enter your name, address, or phone number so no obligation.

I entered some fictional numbers. A $250,000 30 year term for a 31 year old male 5'10" and 160 lbs, never smoked, and best health would cost about $20 to $25 per month. The rate quote also shows rates for policies that offer the 'return of premium rider.' Stay away from return of premium or any other fancy riders as these are really just gimmicks. The only rider I would ever consider is an additional insured rider to cover your child.

Get the basic term life policy for 20 to 30 years. Avoid whole life policies or any other policies that combine savings and insurance together. Also avoid Gerber life policies.

Feel free to ask any other questions. Life insurance is one of my favorite topics!

[maat55]

The rule is to have 8 to 10 times your income in term insurance. I, so far, have always bought 20 year term, but I repurchase every five to ten years, so that I can extend my insurance affordably.

[curvaciouskitti]

Thankyou guys for the suggestions! It was a great help and it clarified a few things for me because life insurence can get very confusing. Now I'm ready to start getting quotes. Thanks again!

[greenskeeper]

we have $500k (30yr term) insurance for myself and wife, $25k for our son (til he is 18, he can pick it up from there if he wants to).

$79/month is our premium. We get all the premium payments back at the end of the term (around $22k). This was through prudential insurance.

[MrPolarZero]

investing for a life insurance is perhaps the greatest decision one could ever make. Having one would definitely secure a better future.

[MrPolarZero]

Originally Posted by maat55

The rule is to have 8 to 10 times your income in term insurance. I, so far, have always bought 20 year term, but I repurchase every five to ten years, so that I can extend my insurance affordably.

Yes I think that a term life insurance would be good choice for you. The setup of the payment system is rather good in that it would be easier for insurance holders to manage their policies than if they get a lifetime insurance policy.

[Robert742]

I like this site to compare term life insurance rates:

Term4Sale.com - Term life insurance comparisons (over 100 companies)

However, you have to qualify for the rate based on your medical & family history, and a paramedical exam paid for by the insurance company.

Some term policies do not require a paramedical exam, but they are expensive. If you are healthy, it is worth it to go through the paramedical exam for the lower rate.

In addition to price, the financial strength of the insurance company is extremely important for a policy you may keep for 20 to 30 years. If the price is reasonable, choose a company with an A++ rating from AM Best. AM Best is paid by the life insurance companies to rate them, so there is bias to give a company a good rating.

Weiss research takes a much more conservative approach to rating insurance companies. You can find out the strongest and weakest insurers from their website for free:

Weiss Ratings

Last time I checked, Banner life had some type of "A" rating from AM Best, but Weiss rated them as one of the weakest insurers. Banner has a low-priced term policy, but I would avoid them due to the Weiss rating.

Unlike auto & home insurance, independent life insurance agents really can shop the majority of life insurance companies for you. Plus, an experienced independent agent knows the company with the best rates for the amount of life insurance you are seeking, or if you are overweight, smoke, or have any health issues.

I recommend getting quotes over the phone from a few independent agents to discuss your needs and your life insurance options. Do not meet in person with an agent until you are ready to buy.

There are online insurance agencies that specialize in term life insurance you can buy over the phone, but they may not be as knowledgeable, or provide the personal service needed when buying life insurance, as a local, experienced independent agent.

Permanent life insurance that builds cash value is a poor choice for your average consumer, but there is permanent life insurance called guaranteed universal life (GUL), that works like a "term for life" policy. GUL is not as expensive as other types of permanent life insurance, because it builds little cash value. You may want to look into it if you value passing on money to your children or spouse when you die -- not just if you die during your working years.

[Angio333]

I would buy the longest term insurance that you could. I prefer the 30 year term over the 20 year.