Term life insurance or Whole life insurance

[gertymac]

I've been thinking that my partner and I need to buy some additional life insurance, but I don't know a whole lot about the process. Currently, we're covered with a low amount through my employer.

Do they ask health questions? Would it be difficult for a young person with some previous health issues to get coverage or a decent rate?

[MonkeyMama]

Lincoln Benefit? We got the policy through a friend - Allstate insurance agent. $500 is for two $500k policies.

Low rate was due to young age, perfect health, and good timing I guess. Not sure you could do so well, today, necessarily. I'd shop around.

For a rate like that, they will do a health review. Will take your blood and ask medical history. The healthier you are, the lower rate you will get.

The thing about a term insurance policy, that lasts a number of years, is you lock in the rate, and have insurance if you develop future medical issues. This is why I would stay away from annually renewing term insurance. For those, they can drop you if you get sick, and rates tend to rise with time. I mean, it's better than nothing, but if you have a family that depends on you, I'd advise getting a 20-30 year term policy.

We have a 30-year policy, because we bought it squite young.

& as Steve pointed out - you can always drop a term policy, if your needs change.

[ea1776]

I pay $35/month for 750K in coverage. TERM all the way.

My rate is guaranteed for 25 years.

I am 27, in good health. The company had someone come over to do medical tests and a questionaire to verify my good health.

I went through SAVINGS BANK LIFE INS. CO. OF MASSACHUSETTS.

I believe they specialize in giving low-rate coverage to folks in good health. No complaints so far, except they did try to raise the rate on me vs. the one they originally quoted. I called them out on it, and they changed the contract though. They also give guaranteed renewal options after the 25-year term. Hopefully won't need to renew due to my hopefully massive net worth. lol

[aim-high]

Thanks MonkeyMama and ea1776 for sharing the information.

[maat55]

Two reasons:

1. Term rates have been steadily falling over the past 10 or so years so it made financial sense to replace an older policy to get a lower premium.

2. As you get older, your need for life insurance gradually diminishes so when I replaced my existing policy, I also reduced the coverage amount, which helped the premium as well.

To add, it is a way to extend your insurance period without waiting until your current policy has expired. For a few dollars more, you can add many more years, in some cases.

[Molsons]

I just recently bought term life insurance for 20 years. I am a 34 year old male and was quoted about $40/month for a 500,000 policy. This amount was comparable to other companies out there. I was also considering Whole Life as an Investment option, but there has got to be a better way of saving this money. Any ideas?????