Life insurance recommendations?

[Pinky]

Does anyone have life insurance purchased that is not related to your employer? If so, what company did you go with?

Any idea how much it typically costs? I know it varies greatly but I have no idea of even a ballpark figure.

Just had our first child and thinking we should probably have more than is available through our employers.

[bnme]

We pay approx $100 per month for $300k coverage on each of us (I think my portion is $35. Seperate policies). We went with Allstate because it was easy at the time but I think I could've gotten cheaper (or better coverage for only a little more). We were 37 and in the top tier for medical. ETA: 20 year term

[Pinky]

We pay approx $100 per month for $300k coverage on each of us (I think my portion is $35. Seperate policies). We went with Allstate because it was easy at the time but I think I could've gotten cheaper (or better coverage for only a little more). We were 37 and in the top tier for medical. ETA: 20 year term

Did you have to get a physical? Also, what does 20 year term mean?

[suzi]

We love USAA. Have eligibility b/c my FIL was in the military. Definitely go with a term policy; much more economical. Some companies will try to sell you a whole life policy as an "investment." There are much better ways for you to earn interest on your money. I bet Clark Howard has some other good recommendations on his website.

http://clarkhoward.com/liveweb/shownotes/category/9/81/

[bnme]

Did you have to get a physical? Also, what does 20 year term mean?

They had access to our medical records. We had to give our doctors names. My DH had a big surgery a couple of years prior so they needed access to that info (he has an extremely rare condition that required major surgery but is not life-threatening. I was worried it would be a problem just because it is rare and the surgery was expensive, but it was not). They also sent a nurse to our house who drew blood, took blood pressure, and asked questions. I think this is the norm of what to expect.

20 year term means it is only good for 20 years. If you want insurance after that you would need a new policey. There is no cash value or anything. The deal is if you die with in that 20 years there is a pay out. Otherwise nothing.

[oneontheway]

An insurance broker could help you find the cheapest term insurance out there but in the end be sure you go with a reputable company since the insurance is only as good as the company that is backing it, so the cheapest isn't always the best. You can check their ratings once you have narrowed down the companies with the best prices. Some insurance companies offer term with the ability to convert to whole life without having to requalify.
Depending on the amount of insurance you want and your health will determine what type of exam is needed. Typically its just blood, urine, blood pressure, etc. from a nurse that comes to you. Life insurance underwriters focus on mortality not disability so if you have a condition but its not life threatening it typically doesn't factor in unless it can become life threatening (high blood pressure, heart issues, diabetes, smoking, etc.) Then you may get rated and pay a higher premium.
I'm partial to Penn Mutual insurance because their term converts and they have good prices for healthy individuals, solid reputation, still a mutual company, etc. But there are a lot of good term insurance companies out there.

[oneontheway]

Oh forgot to mention.. the good part about employer plans is that its typically cheaper but the bad part is that it often is not enough and in most cases it will not follow you should you leave your employer so you will have to medically requalify for new insurance. Depending on your age and health this could be a downside.

[Pinky]

I have some now that I got when I left my previous job and I think it's around $100/quarter for $250K in coverage. Is that a pretty good deal? Unfortunately I think I can only have it for five years.

So, about whole life... what does it mean to be able to convert to whole life at the end? I was thinking some financial advisor long ago told me to stay away from whole life, but I can't remember the reason.

[Katigre]

We went through www.accuquote.com and www.selectquote.com and got much better rates than we were offered through either our insurance company or our investment broker. DH and I have it through different companies b/c we got better rates at different ones. It's fairly inexpensive per month and offers good peace of mind.

Here are some past threads on the topic:

http://www.windsorpeak.com/vbulletin/showthread.php?t=339199
http://www.windsorpeak.com/vbulletin/showthread.php?t=343051
http://www.windsorpeak.com/vbulletin/showthread.php?t=358999
http://www.windsorpeak.com/vbulletin/showthread.php?t=368291
http://www.windsorpeak.com/vbulletin/showthread.php?t=323032
http://www.windsorpeak.com/vbulletin/showthread.php?t=324776&highlight=insurance

[Pinky]

We went through www.accuquote.com and www.selectquote.com and got much better rates than we were offered through either our insurance company or our investment broker. DH and I have it through different companies b/c we got better rates at different ones. It's fairly inexpensive per month and offers good peace of mind.

Here are some past threads on the topic:

http://www.windsorpeak.com/vbulletin/showthread.php?t=339199
http://www.windsorpeak.com/vbulletin/showthread.php?t=343051
http://www.windsorpeak.com/vbulletin/showthread.php?t=358999
http://www.windsorpeak.com/vbulletin/showthread.php?t=368291
http://www.windsorpeak.com/vbulletin/showthread.php?t=323032
http://www.windsorpeak.com/vbulletin/showthread.php?t=324776&highlight=insurance
Thanks for the links! I did a search for life insurance and didn't find anything.
So, did yours require a physical too? Not sure why, but that intimidates me a little. LOL

[Katigre]

Yes, but it wasn't a big deal - they came to our house and did it :).

[Pinky]

Yes, but it wasn't a big deal - they came to our house and did it :).
Wow. I'm impressed that they actually come to your house. That certainly makes it convenient.

[Mikey0709]

Hi - - I actually work in the business and one of the best ways is going through a broker rather than an individual company. The broker should be able to shop it around and give you quotes (more accurate once the medical part is done)... and can even shop or negotiate for you. Insurance companies also run deals once in awhile to get you a better rating.

Your medical history is #1 for determining cost(height/weight & your doc records) but also your driving record and family medical history (parents, siblings, etc) can also affect your cost. Doctors records are ordered and also they do run your drivers license. The medical exam they give is dependent upon how much your buying... mostly it's a simple nurses exam (2 page form) with a blood & urine sample. Higher amounts may require a treadmill or xray test. Almost all insurance companies use an outside firm who does nothing but insurance exams - - so they do it at YOUR convenience and they'll certainly come to your home or office. Portamedic is the name of one such firm. I believe almost ALL insurance these days not matter what amount requires an exam for private (non-group) insurance.

Yes, cheapest isn't always the best, but a broker should be able to give you options, then give you ratings for those companies. Term is always the cheapest, but it expires and the price will go up after the term - - some companies have an option of converting the term to permanent before the term is up - another good option. Whole, universal or variable life are certainly good products - and can be tailored to your financial situation.... so you shouldn't steer clear until a financial advisors directs you on them..... but if your only looking for something now to cover your family while your young, term is a great option.

[keckert]

I went to www.selectquote.com and contacted the company with the smallest quote. I did have to go through a physical but it was easy peasy, blood, urine and a health questionairre. I got $250K for $14/month.

[kbud]

We went through Select Quote. They came up with Banner Life for me and AIG for DH. We have 20 year term. My policy is for $300,000 and is $46 a quarter. DH has $500,000 (I think) and it's $94 a quarter. Select Quote was really easy to work with and they did most everything to get the policies set up. There was a minor health exam where a nurse came to the house.

[cicada]

Erie Insurance. We were satisfied with the process (someone came to our home for physicals) and thought we got a decent deal. We have our homeowners and car insurance through Erie as well, so some of the policies are discounted (I don't think life, but the life insurance policies qualify us for discounts on the others).

[kristal]

We have just started looking into this as well. We recently spoke to an insurance agent. He said that term life is for covering you while you are young, and your DC are too young to be earning. And for after age 65, one may want to think about a universal or whole life policy. So one could purchase two policies- one higher amount term life policy that will run from now until 20 or 30 yrs, and one lower amount universal/whole life policy.

Not sure if this is a good way to go, but he was trying to say that when you are age 65, and if you want to purchase a new policy at that time, it will be exorbitant. So if you think you would like insurance beyond age 65, you should go with a permanent policy now itself.

[pinkflamingo]

why would anyone want a policy beyond 65? Hopefully the house will be paid off, the kids will be on their own, and we will be retired... not sure why you would need life insurance beyond that point. I think its much more crucial for under age 60 when we need income replacement to take care of mortgage, childcare in case of death of one or both of us.

[nrp]

why would anyone want a policy beyond 65? Hopefully the house will be paid off, the kids will be on their own, and we will be retired... not sure why you would need life insurance beyond that point. I think its much more crucial for under age 60 when we need income replacement to take care of mortgage, childcare in case of death of one or both of us.

For high net worth individuals, permanent life insurance can be very useful in estate planning. For most everyone else, I would agree that with proper retirement planning, it shouldn't be necessary.

[emily_gracesmama]

We have combo of term and permanent. The permanent for me is 100mth payable til I am 55 and the benefit is guaranteed at $300k til age 120. My intention is that it will be an inheritance for my children downpayment on a home start to a retirement fund. Hopefully not something frivolous but this is something I do because we are able to do it after we save for us and college. I would look into this if you have the cash flow to support it. My investment of $32k over all those yrs will equal a payout of $300k since unfortunAtely death is something that's guaranteed to occur. Other pt is that I got super preferred health status the highest level a person rated standard would pay over $25k more to guarantee the same payout. I work in the industry.

[♥ms.pacman♥]

Yes, but it wasn't a big deal - they came to our house and did it :).

:yeahthat: we used accuquote too and found great rates. and yeah they arranged for someone to come to our house and do the tests (blood tests, take blood pressure etc).

[pmama]

My husband I both have AAA policies. They're $250,000 each for 25 years (I think 25, maybe 20) and we pay around $150 each per year. They also sent a nurse to our house to draw blood, etc.