Err, how do you buy term life insurance?

[Villanelle]

This feel like something a 40-something adult should know.  But DH has already had very generous insurance for himself and me, plus policies we bought when first married via a financial advisor (scammy, when we didn't know better) so we never really did this.  Well, he plans to leave his employer (military) next summer and we will want some term insurance for him.  How does one even being this process?  (Guessing we want either a 20 year policy, or perhaps a smaller 10 and then more modest 20 year, maybe?)   

What the cheapest way?, but ease and time-suck-ness are also factors for us/him right now. 

(Yes, I know about VGLI, but it sounds like for a relatively healthy person that's more expensive.  And we know about SBP and are weighing that option, but likely will opt out of all or most of it, with the life insurance policy bridging the gap until we reach a point where the higher monthly payments will have accumulated enough to offset any potential insurance pay out.)

[GilesMM]

Call your closest local agent (State Farm, etc).  They will do all the leg work for you.  They may even have ideas on saving you money on property, auto, etc.

[sonofsven]

I got mine through USAA.

[snic]

I bought term policies many years ago using a website called quotesmith.com, which seems to be defunct now. But google "term life insurance quotes" and options will show up. Selectquote is the first one that comes up, I'm sure there are others. Basically you give them some basic info about yourself and they give you a quote. During the application there is usually a simple medical exam (blood pressure, etc - I think there might have also been a blood test of some sort), and they might bump you into a higher rate than quoted if something is amiss.

Since DH is military, USAA probably will have good rates, so compare anything you find to them.

[ChickenStash]

Check local listings (or google) for an independent insurance agent/office. They can take the info and come back with options from multiple companies. Pretty much the same for auto and home, although the agent might be different.

For military, USAA will probably be the best option, though.

[Finances_With_Purpose]

Check local listings (or google) for an independent insurance agent/office. They can take the info and come back with options from multiple companies. Pretty much the same for auto and home, although the agent might be different.

For military, USAA will probably be the best option, though.

This.  You just specify the term.  At that age, shorter will be much cheaper, but YMMV as far as what you need/want for that time period.  Think about where your 'stache will be in X years (e.g. 10, 15, and 18) and whether you'd still need term out that far or whether you could patch it together otherwise by then. 

[Rural]

Agreed on USAA being a good option but also compare to veteran rates at Navy Federal (don't have to have been Navy anymore; any branch makes you eligible).

[Michael in ABQ]

We got a policy for my wife through USAA but I went with Zander Insurance for a larger policy for myself. They're an independent agent so they got quotes from multiple companies. The actual insurance is through AIG. They've advertised on Dave Ramsey for many years. I had a good experience, albeit there was still an in-person medical exam (height, weight, blood draw). They had a lot of options as far as 10-year, 15-year, or 20-year term. Since I'm still in the National Guard they also checked to make sure that insurer wouldn't have exclusions for military service overseas (they did ask about more specific risks like aviation or explosive ordnance disposal).

I was in the cheapest bracket (healthiest/lowest risk) and a $500k policy in my early 30s for 15-year term was about $250/year or $5 per $10,000/year. SGLI in comparison was $7 per $10,000 - albeit that's subsidized. My wife paid over $12 per $10,000 despite being the same age since she had a few health issues.

[FlytilFIRE]

Look into a USAA 20 year Level Term policy. It may not be the cheapest, but USAA has never, to my knowledge, increased the rates on a level term policy, so it's at least predictable for the long haul. If you look out 20 years, it may be enough to just bag life insurance altogether at the end of the policy. I took a 20 year policy, and about 15 years later, they offered me a reasonable (new)15 year level term policy that will take me to life insurance independence.

Good luck in the Civvie World!

[Villanelle]

Look into a USAA 20 year Level Term policy. It may not be the cheapest, but USAA has never, to my knowledge, increased the rates on a level term policy, so it's at least predictable for the long haul. If you look out 20 years, it may be enough to just bag life insurance altogether at the end of the policy. I took a 20 year policy, and about 15 years later, they offered me a reasonable (new)15 year level term policy that will take me to life insurance independence.

Good luck in the Civvie World!

I thought all term policies had a fixed rate for the length of the policy; I thought that was the point.  Good to know I need to look out for that.

I did the quote generator on USAA's site and the prices seem reasonable.  I'm pretty sure that in 20 years, we won't have a need for insurance. I might even do 2 smaller polices--one at 10 years and the other at 20, to roughly coincide with the gradual accumulation of what otherwise would go to SBP premiums.  Turning down SBP feels scary, but when I look at it objectively, a term policy makes sense.

[AMandM]

Agreed on USAA being a good option but also compare to veteran rates at Navy Federal (don't have to have been Navy anymore; any branch makes you eligible).

About 9 years ago, when we bought our house, Navy FCU was one option even though we're not military in any way. Paying $20 to become a member of some military support group (I forget its name) would have made us eligible.

[Villanelle]

Thanks for all the feedback.  I'm wary--to say the least--of insurance agents.  Maybe it's from my time working as an assistant in a (non-fiduciary--I was young and didn't know better!!) financial planning office.  I guess I expect a hard sell, and an upsell, and a million phone calls even if I decide to go another direction.  It feels icky and intimidating.  I've checked out USAA and the prices seem decent, but I have nothing to compare them to.  I'll check out NFCU, and maybe I need to bite the bullet and at least talk to an agent to see if they can beat USAA's rates. 

Right now, best guess is we will do a 10 year term policy, and a 20 year, which will offset the gradual accumulation of the SBP premiums we aren't paying.  A tiered approach seems to make more sense than one large policy since our savings should grow (and therefore needs decrease) over time.  But I have to play with pricing to see what makes sense, and also decide if we will forgo all of SBP, or some, or none.   

[Nords]

Here’s more advice on the military concerns with life insurance.

First, if your timing works, buy the term policy before you start the military retirement physical and the VA disability claim.  That way you already have the policy in place before the blood tests and the EKG start bothering the doctors.  Even when everything is satisfactorily resolved, the insurers are still inclined to insist on higher rates because of the initial results of the physical exams.

Second, if the physical exams raise concerns, then VGLI is the insurance policy of last resort for uninsurable vets.  It’s guaranteed coverage (regardless of your physical or mental condition), there’s no exams, and that’s why it’s so expensive.   You’d only buy VGLI if nobody else wanted to insure you.

Third, most people only buy life insurance to bridge the gap between military retirement and Social Security, somewhere in your 60s.  You could start SS at age 62 but at that age (speaking from experience) you’ll probably decide to start deferring it until age 70 unless you encounter a really nasty bear market or recession.  “When to start SS” is a separate discussion but you’ll probably choose term policies to end around age 62-65.

It’s a lot of fun to do the quotes yourself (/sarcasm) and get on every agent’s contact list, but it’s easiest to consult an independent insurance broker.  (They don’t have a financial incentive to sell you a particular policy.)  The best one I know of for military families is Melissa Schreur of InsureTheHeroes.  She’s an experienced broker and she’s a military spouse herself.  I know her well from financial conferences.  You’ll probably decide to go with a military-friendly policy from smaller companies like AAFMAA or NMAA, but USAA is certainly good too.  Melissa knows to watch out for insurance dirty tricks like aviator duties or war exclusions.

Zander seems fine too but I've never talked with their people.  They're probably objective but they might pay influencers (like Dave Ramsey) for hot leads, as almost all insurers do.

A tiered approach makes sense.  You’ll also want to consider whether you (personally) want to manage everything yourself or simply fall back on the monthly SBP deposits.  I don’t think you want (let alone need) SBP, but consider the behavioral financial psychology of a military retiree couple who’ve changed their minds during the 2023 open season:
https://www.wingedwealth.com/insights/why-i-opted-back-in-to-sbp/

*(Note for the rest of the forum:  I’m not starting a financial discussion about SBP versus term insurance.  This is strictly about the emotions of  behavioral financial psychology and a military CFP’s observation of the financial habits of military widow(er)s.  But if you do want to get into the financial comparisons then read CFP Forrest Baumhover’s $5 book linked in that post.  He’s also a military retiree and a CFP who works with lots of widow(er)s.)

[Villanelle]

Here’s more advice on the military concerns with life insurance.

First, if your timing works, buy the term policy before you start the military retirement physical and the VA disability claim.  That way you already have the policy in place before the blood tests and the EKG start bothering the doctors.  Even when everything is satisfactorily resolved, the insurers are still inclined to insist on higher rates because of the initial results of the physical exams.

Second, if the physical exams raise concerns, then VGLI is the insurance policy of last resort for uninsurable vets.  It’s guaranteed coverage (regardless of your physical or mental condition), there’s no exams, and that’s why it’s so expensive.   You’d only buy VGLI if nobody else wanted to insure you.

Third, most people only buy life insurance to bridge the gap between military retirement and Social Security, somewhere in your 60s.  You could start SS at age 62 but at that age (speaking from experience) you’ll probably decide to start deferring it until age 70 unless you encounter a really nasty bear market or recession.  “When to start SS” is a separate discussion but you’ll probably choose term policies to end around age 62-65.

It’s a lot of fun to do the quotes yourself (/sarcasm) and get on every agent’s contact list, but it’s easiest to consult an independent insurance broker.  (They don’t have a financial incentive to sell you a particular policy.)  The best one I know of for military families is Melissa Schreur of InsureTheHeroes.  She’s an experienced broker and she’s a military spouse herself.  I know her well from financial conferences.  You’ll probably decide to go with a military-friendly policy from smaller companies like AAFMAA or NMAA, but USAA is certainly good too.  Melissa knows to watch out for insurance dirty tricks like aviator duties or war exclusions.

Zander seems fine too but I've never talked with their people.  They're probably objective but they might pay influencers (like Dave Ramsey) for hot leads, as almost all insurers do.

A tiered approach makes sense.  You’ll also want to consider whether you (personally) want to manage everything yourself or simply fall back on the monthly SBP deposits.  I don’t think you want (let alone need) SBP, but consider the behavioral financial psychology of a military retiree couple who’ve changed their minds during the 2023 open season:
https://www.wingedwealth.com/insights/why-i-opted-back-in-to-sbp/

*(Note for the rest of the forum:  I’m not starting a financial discussion about SBP versus term insurance.  This is strictly about the emotions of  behavioral financial psychology and a military CFP’s observation of the financial habits of military widow(er)s.  But if you do want to get into the financial comparisons then read CFP Forrest Baumhover’s $5 book linked in that post.  He’s also a military retiree and a CFP who works with lots of widow(er)s.)

Interesting, especially that article. 

Thankfully, DH has no desire to fly, professionally or for funsies other than as a passenger on a commercial airline on the way to a vacation, and there is almost not chance of him deploying anywhere in the remaining >year (not that I'm counting ;) ) so even if a policy has those exclusions, it would be fine.  And the "get it done before the retirement physical was exactly my reasoning for starting this now.  We are pretty sure DH has no major issues, but he will get getting a sleep study, which could lead to a diagnosis, and who knows what else they could find.  So sooner is better than later.  Unsurprisingly, he's crazy busy right now.  Work in and of itself is non-stop, and trying to squeeze in anything retirement-related is already a stesser, so life insurance shopping is another unwelcome thing on the list.  I'm hoping to get it to the point where I've got a quote (or at least narrowed down to a few) and can just say, "sign here", so he doesn't need to think about it.

[Nords]

We are pretty sure DH has no major issues, but he will get getting a sleep study, which could lead to a diagnosis, and who knows what else they could find.  So sooner is better than later. 

Writing as a guy who's talked with hundreds of vets, you absolutely, positively want that term policy in place before the sleep study.  In fact I'd hesitate to even mention it to Melissa, let alone to any other anonymous independent agent.

Retirement preps should have their priority as the "life" part of work/life balance.  If you want, I can share the story of a year that an O-6 experienced when she tried working 18-hour days up until her final month before retirement and then started the retirement physical... only to discover that she was not cleared to retire until her medical/physical issues had been diagnosed and treated.  BUMED and BUPERS had strong words, the admiral had stronger words, and nobody was happy to get SECNAV approval to carry an O-6 on the manpower books a year past the retirement statutes.

She spent that Year In Hell as the special projects officer on the admiral's staff.  (It's the same circle of Hell that commanding officers end up in when they're fired from command.)  Her schedule of medical appointments (and surgery, and therapy) was personally managed by the admiral's chief of staff as only those officers can do. 

I'm pretty sure it was the admiral's way of letting all the other O-6s in their Navy town know that they needed to prioritize training & delegating so that they could spend more personal time on preparing for retirement.

Nobody wants to read the story of one of my E-8s who was only allowed to start his retirement terminal leave after he'd finished all eight root canals that his dentist identified at his retirement physical.  One root canal per month... and the pharmacy got pretty snippy about all of his painkiller prescription renewals, too.

[Villanelle]

We are pretty sure DH has no major issues, but he will get getting a sleep study, which could lead to a diagnosis, and who knows what else they could find.  So sooner is better than later. 

Writing as a guy who's talked with hundreds of vets, you absolutely, positively want that term policy in place before the sleep study.  In fact I'd hesitate to even mention it to Melissa, let alone to any other anonymous independent agent.

Retirement preps should have their priority as the "life" part of work/life balance.  If you want, I can share the story of a year that an O-6 experienced when she tried working 18-hour days up until her final month before retirement and then started the retirement physical... only to discover that she was not cleared to retire until her medical/physical issues had been diagnosed and treated.  BUMED and BUPERS had strong words, the admiral had stronger words, and nobody was happy to get SECNAV approval to carry an O-6 on the manpower books a year past the retirement statutes.

She spent that Year In Hell as the special projects officer on the admiral's staff.  (It's the same circle of Hell that commanding officers end up in when they're fired from command.)  Her schedule of medical appointments (and surgery, and therapy) was personally managed by the admiral's chief of staff as only those officers can do. 

I'm pretty sure it was the admiral's way of letting all the other O-6s in their Navy town know that they needed to prioritize training & delegating so that they could spend more personal time on preparing for retirement.

Nobody wants to read the story of one of my E-8s who was only allowed to start his retirement terminal leave after he'd finished all eight root canals that his dentist identified at his retirement physical.  One root canal per month... and the pharmacy got pretty snippy about all of his painkiller prescription renewals, too.

He's doing it, just slowly and somewhat begrudgingly.  We'll get there, but it's not going to be pretty.  Sleep study won't be until at least November, so I've set Oct as the deadline to get insurance in place.  As of now, he can very honestly say he's never been diagnosed w sleep apnea (and he may never be) and I definitely want the insurance in place before he could be. 

He did just pass his annual flight physical so there's good reason to believe that other big surprises are unlikely, thankfully.  But I/he also knows anything is possible, so I want to get this locked in before the next time a doctor takes a hard look at him, just in case. 

[Timeforfocus]

We have policies that are creeping up on expiration, but DH's is $250/yr for $500K through Banner Life (Now Legal and General) who has an online quote option. Mine is $424 annually for $300K through US Financial Life who I wouldn't recommend. I'm sure you'll see higher premiums because of his age, but it wasn't hard to get quotes. All policies we've had did require a "physical" where they had a contracted nurse or MA come out to the house and do a blood draw, blood pressure, urine sample, etc. Good luck!