tgrimes
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Post by tgrimes on Jun 22, 2017 11:54:56 GMT -6
My parents bought me a whole life policy for $50k when I was 10. I continue to pay it but I'm wasting a shit load of money on fees. I have a group term policy through work and my financial advisor says I should surrender my whole life policy and set up a term policy through a separate agency. He suggested a $500k - $1 million policy for MH & me. I need someone that's not trying to sell me life insurance to tell me why this is a good idea. Explain it to me like I'm 8. (I stole that line from joelies.) |
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tallb
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Post by tallb on Jun 22, 2017 12:58:31 GMT -6
I have a quote on policy genuis.. they ask a bunch of questions about kids and life and then have quotes from different companies. I think I going to do a 25 year one.
Anyone know if that type of website is legit? They advertise on pod save America and I find that podcast legit. (Laughing at my rational)
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Post by flamingo on Jun 22, 2017 13:02:08 GMT -6
We carry a lot of life insurance, due to the nature of my husband's job and because I'm a SAHM. He carries more because he's our primary earner, but I carry around a half mil because my H would need to essentially replace the services I provide (childcare, etc) in the event of my untimely demise  Term is usually the best bet for our age because it's less expensive, and it's assumed you don't have significant savings/retirement funds/assets at this point. Whole life is more expensive because the policy builds cash value that you can access or borrow against while you're still alive (term is only a death benefit for the term of the policy). The rule of thumb is 7-10x the income you're replacing. I'm sure a financial advisor could offer guidance based on whatever mortgage/debt you carry, your incomes, etc. I believe you're supposed to factor in your current expenses, savings and investments, etc. to figure out your #. I'd definitely shop around before buying. DH's insurance is more expensive because of his job (increased risk) but we saw significant variations in price when we purchased ours. ETA: what happens to your whole life policy if you stop paying in? Do you get the cash value out of it that you could invest in something else? |
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tgrimes
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Post by tgrimes on Jun 22, 2017 13:53:32 GMT -6
flamingo Yes, I will get the cash value and invest it. Doesn't term insurance go up in price as we age?
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Post by peachsmama on Jun 22, 2017 13:55:22 GMT -6
flamingo Yes, I will get the cash value and invest it. Doesn't term insurance go up in price as we age? Yes. |
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tgrimes
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Post by tgrimes on Jun 22, 2017 13:56:52 GMT -6
flamingo Yes, I will get the cash value and invest it. Doesn't term insurance go up in price as we age? Yes. Do you know how much? Is it a percentage? Is it based on a simple formula? |
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Post by peachsmama on Jun 22, 2017 14:01:51 GMT -6
Do you know how much? Is it a percentage? Is it based on a simple formula? I just a quick online survey to see what I should be paying and it asked about my health, driving record and my parents and siblings health. So company depending, I'm sure they use a lot of different factors in determining price. Which BTW, I'm way over paying for what my MIL sold us. I'll let DH tell her we're switching.. |
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Post by snoopmommymom on Jun 22, 2017 14:08:03 GMT -6
I need this thread. We don't have LI outside of what MH has from his job. Not to sound morbid but MH's father died at age 38 so I feel like I really need to get on top of this. (Not that I think mh will follow suit, god forbid)
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nam2013
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Post by nam2013 on Jun 22, 2017 14:21:15 GMT -6
Don't have the same system I think, but we do have life insurance. Basically if one (or both) of us die, the house is mortgage free. This would allow the one that's left behind de stay in our house and work less.
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Post by peachsmama on Jun 22, 2017 14:35:26 GMT -6
Don't have the same system I think, but we do have life insurance. Basically if one (or both) of us die, the house is mortgage free. This would allow the one that's left behind de stay in our house and work less. Here you can buy mortgage insurance that does that. |
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Post by calimocho on Jun 22, 2017 14:35:46 GMT -6
I think whether you want term or whole depends on your goals.
If the goal includes using insurance as an investment vehicle, people get whole.
If the goal is to cover a mortgage/college/childcare in the event of your death, people get term (based on the age of kids, etc).
We have an obscene amount of term insurance on me. We have a small amount on H, since I could afford to pay OOP for help covering the things he does around the house.
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Post by calimocho on Jun 22, 2017 14:50:42 GMT -6
For people with insurance through work, it's worth confirming whether you can convert it into an individual policy if you no longer worked there. Just some peace of mind that you won't lose that coverage in a worst case scenario (and good to k ow so you don't miss any filing deadlines to do the conversion).
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kim22
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Post by kim22 on Jun 22, 2017 16:01:56 GMT -6
We bought 20 year term policies when our oldest was a year old. The rate will not change unless we covert it to whole life. We were told to have enough to pay off the mortgage and pay childcare/college expenses for kids. I pay around $150 a year for a 250,000 policy and DH's is about $400 a year for a $750,000 policy. I did those through the guy that manages my 403b and the kid's 529's. We took those when we only had 1 kid and our mortgage was less but I also have 3.5 times my salary at work and DH has 2 times his salary. When he started his job last year, we paid for additional policies through his work for both of us.
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csho
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Post by csho on Jun 22, 2017 16:07:46 GMT -6
I have many thoughts on life insurance. None of them are particularly helpful though. I think every individual has different needs based on lifestyle factors.
We have some life insurance on DH through work, no additional policies and none on me.
In general, we purchase very little of any kind of insurance and have high deductibles. We rely on other financial safety nets.
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tgrimes
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Post by tgrimes on Jun 22, 2017 21:24:28 GMT -6
For people with insurance through work, it's worth confirming whether you can convert it into an individual policy if you no longer worked there. Just some peace of mind that you won't lose that coverage in a worst case scenario (and good to k ow so you don't miss any filing deadlines to do the conversion). I know I can transfer mine, if I ever leave the firm. |
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cagoldi
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Post by cagoldi on Jun 23, 2017 8:02:13 GMT -6
flamingo Yes, I will get the cash value and invest it. Doesn't term insurance go up in price as we age? I mean, yeah, but that doesn't really matter now. Get a 20 or 25 year term based on your current age and health and then cross that bridge when you come to it. You don't need nearly as much insurance (if any) when you're at or near retirement. Sent from my iPhone using Tapatalk |
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cagoldi
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Post by cagoldi on Jun 23, 2017 8:03:49 GMT -6
Do you know how much? Is it a percentage? Is it based on a simple formula? Actuarial tables consider a multitude of factors such as health, age, occupation, marital status, family history, etc. There's no way to know what you would pay when it comes time to get another policy. Sent from my iPhone using Tapatalk |
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cagoldi
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Post by cagoldi on Jun 23, 2017 8:05:43 GMT -6
For people with insurance through work, it's worth confirming whether you can convert it into an individual policy if you no longer worked there. Just some peace of mind that you won't lose that coverage in a worst case scenario (and good to k ow so you don't miss any filing deadlines to do the conversion). Also make sure it's not just AD&D. Some companies only offer these policies which would pay exactly zero in the event of death due to illness or disease. Sent from my iPhone using Tapatalk |
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tgrimes
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Post by tgrimes on Jun 23, 2017 8:05:55 GMT -6
Do you know how much? Is it a percentage? Is it based on a simple formula? Actuarial tables consider a multitude of factors such as health, age, occupation, marital status, family history, etc. There's no way to know what you would pay when it comes time to get another policy. Sent from my iPhone using Tapatalk I understand that, but I wasn't very clear in my question. If I get a term policy right now, will my monthly payments be the same until the end of the policy or in 5 years is it going to go up? Did that make sense? |
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cagoldi
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Post by cagoldi on Jun 23, 2017 8:08:22 GMT -6
We each carry $750,000 20 year term (I increased this about 2 years ago, prior to that we had $500,00 each).
We also have 4x our annual salary in work policies, plus additional 4x salary for AD&D.
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cagoldi
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Post by cagoldi on Jun 23, 2017 8:09:13 GMT -6
Actuarial tables consider a multitude of factors such as health, age, occupation, marital status, family history, etc. There's no way to know what you would pay when it comes time to get another policy. Sent from my iPhone using Tapatalk I understand that, but I wasn't very clear in my question. If I get a term policy right now, will my monthly payments be the same until the end of the policy or in 5 years is it going to go up? Did that make sense? They can't raise the rate on you during the term. So if you obtain a 20 year policy, your rate will not change during that 20 year term. Sent from my iPhone using Tapatalk |
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tgrimes
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Post by tgrimes on Jun 23, 2017 8:11:06 GMT -6
I understand that, but I wasn't very clear in my question. If I get a term policy right now, will my monthly payments be the same until the end of the policy or in 5 years is it going to go up? Did that make sense? They can't raise the rate on you during the term. So if you obtain a 20 year policy, your rate will not change during that 20 year term. Sent from my iPhone using Tapatalk Awesome. Thank you! |
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cagoldi
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Post by cagoldi on Jun 23, 2017 9:43:26 GMT -6
Also, my personal thoughts are I would never buy while life for an adult and since you mentioned being concerned about getting info from someone being paid, you might find it useful to know commissions are a good deal higher on whole life than they are on term.
The agent gets more money for selling you those.
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tgrimes
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Post by tgrimes on Jun 23, 2017 10:14:03 GMT -6
Also, my personal thoughts are I would never buy while life for an adult and since you mentioned being concerned about getting info from someone being paid, you might find it useful to know commissions are a good deal higher on whole life than they are on term. The agent gets more money for selling you those. Sent from my iPhone using Tapatalk I figured. That's why i didn't want to ask my agent. My financial advisor suggested surrendering the whole life & getting term. My sister and I are both in a position that we want to surrender, but our agents are wanting to meet us to discuss. Ummmm, no. Either give me quotes for term through emails or the phone or I'll take my business elsewhere. Pretty sure I'll be going elsewhere regardless... |
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tallb
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Post by tallb on Jun 23, 2017 13:11:30 GMT -6
tgrimes I'm doing 30 year to lock in the rate now since if I try to get term in 20 years, the rate will be much higher. Thanks for this thread, I finally submitted my application last night and talked to someone today. It's not cheap but it is essentially to protect the kids, so I should have done this ages ago.
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