Author Topic: Insurance brokers, term life, USAA, etc  (Read 3636 times)

jeromedawg

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Insurance brokers, term life, USAA, etc
« on: July 01, 2016, 01:42:49 PM »
Hey all,

So my wife really got on me last night to do our life insurance, so feeling the pressure  I went ahead and proceeded with a $1m 25yr policy through USAA just to get the ball rolling. Scheduled a medical exam for Tuesday as well. I'm tired of trying to "shop around" to compare quotes because it all seems variable what the final rate will be due to a couple health concerns (high cholesterol and high blood pressure). Anyway, a friend of ours (who is a CFP) strongly recommended an insurance broker she deals with - there's no kick back or anything for her referral... I think she uses her for her and her husband (who has a heart condition).

Should I just reach out to the insurance broker despite having started the process with USAA? Honestly, I'm so sick of dealing with all this - it's one of those things that is just overwhelming for me to think about and deal with shopping around for... similar to how I despise the idea of shopping around for a car and whatever else. Perhaps some of it is "fear of the unknown" since I've never done it before. And probably most of it is just analysis paralysis, which is one of my weak points when it comes down to dealing with stuff that I'm totally unfamiliar with....insurance being one of those things.

Jim2001

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Re: Insurance brokers, term life, USAA, etc
« Reply #1 on: July 02, 2016, 01:50:32 PM »
I would talk to the broker.  Different companies have different underwriting rules for different conditions.  You may find a better price based on your needs.  Be upfront with the broker about all of the details, including that you've started the process with a competitor.  It could save you considerable $s.

jeromedawg

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Re: Insurance brokers, term life, USAA, etc
« Reply #2 on: July 02, 2016, 11:15:03 PM »
I would talk to the broker.  Different companies have different underwriting rules for different conditions.  You may find a better price based on your needs.  Be upfront with the broker about all of the details, including that you've started the process with a competitor.  It could save you considerable $s.


Thanks for the insight! I'll give them a call... in the meantime, I've scheduled for my blood draw/medical exam to be on Monday (yes, Monday :) They actually called me to reschedule because I originally asked for Tuesday and offered Monday... maybe I should double-check that lol). Should I give them a call back and tell them to hold off before checking with the broker? I don't want to have to do a medical exam multiple times :T

Paul der Krake

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Re: Insurance brokers, term life, USAA, etc
« Reply #3 on: July 03, 2016, 05:49:51 AM »
Do you have children? Do you have at least two years of Social Security earnings?

If so, your spouse and children will qualify for up to $3,800/month of survivor benefits from the Social Security Administration. The exact number is based on your earning record, but run the numbers make sure you factor this before buying a $1m+ policy.

Childless widowers are SOL, though.

Dicey

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Re: Insurance brokers, term life, USAA, etc
« Reply #4 on: July 03, 2016, 06:48:54 AM »
I carried term life insurance for a few years as required for a business deal. I did an online search, which came up with a company I'd never heard of, called WAEPA, Worldwide Assurance for Employees of Public  Agencies. I am not now, nor have I ever worked for a Public Agency, but my dad did, and that was all the link I needed. It was super cheap and every year I got about a 25% premium rebate. This was in the early 2000's and I remember completing a healthcare questionnaire,  but no physical. I was in my forties and have had cancer, plus I have a heart condition, so I was elated to find such a deal.

Fast forward to now: I am married, FIRE and no longer need life insurance, but for our other insurance needs, we use a broker. She came up with Civil Service Employees (CSE) Insurance, because DH works for a utility company. Saves us a ton of money.

Takeaways: Explore all affiliations. Buy Term Life only. Don't let yourself be upsold to something more expensive that you don't need. Also, time for an attitude adjustment,  jplee3. Get excited about the chance to learn, dig in and save money in the process. It's a chance to strengthen your problem-solving muscles, which we all know makes your mustache even more badass. You can do this and it's easier than you think.

Jim2001

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Re: Insurance brokers, term life, USAA, etc
« Reply #5 on: July 03, 2016, 08:35:19 PM »
I would talk to the broker.  Different companies have different underwriting rules for different conditions.  You may find a better price based on your needs.  Be upfront with the broker about all of the details, including that you've started the process with a competitor.  It could save you considerable $s.


Thanks for the insight! I'll give them a call... in the meantime, I've scheduled for my blood draw/medical exam to be on Monday (yes, Monday :) They actually called me to reschedule because I originally asked for Tuesday and offered Monday... maybe I should double-check that lol). Should I give them a call back and tell them to hold off before checking with the broker? I don't want to have to do a medical exam multiple times :T

Move it out if you don't want to do it twice.  The person coming to pull blood and take vitals is usually a contract RN/LVN/phlebotomist trying to work you into their schedule so they can get paid for doing the exam.  Don't feel bad rescheduling, it happens all the time.

+1 for term unless you have a specific need for a different product.  Most people don't have the the need for whole life, variable, etc.

jeromedawg

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Re: Insurance brokers, term life, USAA, etc
« Reply #6 on: July 04, 2016, 01:26:16 AM »
Do you have children? Do you have at least two years of Social Security earnings?

If so, your spouse and children will qualify for up to $3,800/month of survivor benefits from the Social Security Administration. The exact number is based on your earning record, but run the numbers make sure you factor this before buying a $1m+ policy.

Childless widowers are SOL, though.

We have one kid now. And more than two years of SS earnings I'm pretty sure... though, I'm not leaning on SS for anything at this rate. I thought I read or heard about how there's a likelihood SS payouts will be reduced in years to come. Who knows how much will be left by the time my wife and I are of the right age to qualify for it.... was curious on thoughts about this as well.

jeromedawg

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Re: Insurance brokers, term life, USAA, etc
« Reply #7 on: July 04, 2016, 01:28:30 AM »
I would talk to the broker.  Different companies have different underwriting rules for different conditions.  You may find a better price based on your needs.  Be upfront with the broker about all of the details, including that you've started the process with a competitor.  It could save you considerable $s.


Thanks for the insight! I'll give them a call... in the meantime, I've scheduled for my blood draw/medical exam to be on Monday (yes, Monday :) They actually called me to reschedule because I originally asked for Tuesday and offered Monday... maybe I should double-check that lol). Should I give them a call back and tell them to hold off before checking with the broker? I don't want to have to do a medical exam multiple times :T

Move it out if you don't want to do it twice.  The person coming to pull blood and take vitals is usually a contract RN/LVN/phlebotomist trying to work you into their schedule so they can get paid for doing the exam.  Don't feel bad rescheduling, it happens all the time.

+1 for term unless you have a specific need for a different product.  Most people don't have the the need for whole life, variable, etc.

Thanks, I figured I should cancel so I did earlier last night. As far as term vs whole, I'm definitely going for term - just not quite sure for how long. Also need to factor in the SS benefit (though I have my reservations with banking on or having too much dependence on that)

I carried term life insurance for a few years as required for a business deal. I did an online search, which came up with a company I'd never heard of, called WAEPA, Worldwide Assurance for Employees of Public  Agencies. I am not now, nor have I ever worked for a Public Agency, but my dad did, and that was all the link I needed. It was super cheap and every year I got about a 25% premium rebate. This was in the early 2000's and I remember completing a healthcare questionnaire,  but no physical. I was in my forties and have had cancer, plus I have a heart condition, so I was elated to find such a deal.

Fast forward to now: I am married, FIRE and no longer need life insurance, but for our other insurance needs, we use a broker. She came up with Civil Service Employees (CSE) Insurance, because DH works for a utility company. Saves us a ton of money.

Takeaways: Explore all affiliations. Buy Term Life only. Don't let yourself be upsold to something more expensive that you don't need. Also, time for an attitude adjustment,  jplee3. Get excited about the chance to learn, dig in and save money in the process. It's a chance to strengthen your problem-solving muscles, which we all know makes your mustache even more badass. You can do this and it's easier than you think.

Thanks, yea when it comes down to stuff like this I usually just do it out force or sheer willpower and not to learn. I guess that's one of my weaknesses... especially for things that really don't interest me - that's probably why I suck at learning new things. But for stuff I'm actually interested in, I suppose I learn pretty well. The trick is getting interested in crap that isn't interesting. Quite the paradox. Then of course there are the people who seem to be good at virtually everything and anything they do. Ask them a question and they sound like they're in the profession... those people drive me nuts, but I admire them
« Last Edit: July 04, 2016, 01:31:38 AM by jplee3 »

jeromedawg

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Re: Insurance brokers, term life, USAA, etc
« Reply #8 on: July 08, 2016, 05:09:41 PM »
So I've been working with the broker and have requested that USAA withdraw my application. The quotes the broker has found are definitely less.

One thing I am curious about though is laddering policies. I am interested in doing this but the broker seems to be indicating that the insurance companies wind up charging "additional policy fees" for multiple policies, which I guess ends up costing more in the end? I always thought whatever I get quoted is what I am quoted barring results from the medical exam. Do you really get slapped with additional fees when carrying multiple policies?

Dicey

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Re: Insurance brokers, term life, USAA, etc
« Reply #9 on: July 08, 2016, 07:09:39 PM »
[1.] So I've been working with the broker and have requested that USAA withdraw my application. The quotes the broker has found are definitely less.

[2.] One thing I am curious about though is laddering policies. I am interested in doing this but the broker seems to be indicating that the insurance companies wind up charging "additional policy fees" for multiple policies, which I guess ends up costing more in the end? I always thought whatever I get quoted is what I am quoted barring results from the medical exam. Do you really get slapped with additional fees when carrying multiple policies?
1. Yay for the broker proving helpful.

2. No idea, sorry. I'm curious as to why you would want to? How is it beneficial?

jeromedawg

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Re: Insurance brokers, term life, USAA, etc
« Reply #10 on: July 08, 2016, 07:17:42 PM »
[1.] So I've been working with the broker and have requested that USAA withdraw my application. The quotes the broker has found are definitely less.

[2.] One thing I am curious about though is laddering policies. I am interested in doing this but the broker seems to be indicating that the insurance companies wind up charging "additional policy fees" for multiple policies, which I guess ends up costing more in the end? I always thought whatever I get quoted is what I am quoted barring results from the medical exam. Do you really get slapped with additional fees when carrying multiple policies?
1. Yay for the broker proving helpful.

2. No idea, sorry. I'm curious as to why you would want to? How is it beneficial?

For #2, I've seen a few others here recommending doing it that way. The goal is to reduce the overall cost of life insurance and maintain "enough" with the assumption that as net worth increases with age, the need for a high amount of life insurance would decrease. This way you save by only paying for what you truly need.

Jim2001

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Re: Insurance brokers, term life, USAA, etc
« Reply #11 on: July 08, 2016, 09:24:50 PM »
So I've been working with the broker and have requested that USAA withdraw my application. The quotes the broker has found are definitely less.

One thing I am curious about though is laddering policies. I am interested in doing this but the broker seems to be indicating that the insurance companies wind up charging "additional policy fees" for multiple policies, which I guess ends up costing more in the end? I always thought whatever I get quoted is what I am quoted barring results from the medical exam. Do you really get slapped with additional fees when carrying multiple policies?

Laddered policies is a great way to reduce future costs without having to apply for a new policy later (many things can happen between now and later that may raise the costs, or make you un-insurable).  Get the broker to quote the additional fees.  Unless you're asking for an unreasonably large pair of policies, or unusually large number of policies, I don't know why they would charge more.

jeromedawg

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Re: Insurance brokers, term life, USAA, etc
« Reply #12 on: July 11, 2016, 01:20:36 PM »
So I've been working with the broker and have requested that USAA withdraw my application. The quotes the broker has found are definitely less.

One thing I am curious about though is laddering policies. I am interested in doing this but the broker seems to be indicating that the insurance companies wind up charging "additional policy fees" for multiple policies, which I guess ends up costing more in the end? I always thought whatever I get quoted is what I am quoted barring results from the medical exam. Do you really get slapped with additional fees when carrying multiple policies?

Laddered policies is a great way to reduce future costs without having to apply for a new policy later (many things can happen between now and later that may raise the costs, or make you un-insurable).  Get the broker to quote the additional fees.  Unless you're asking for an unreasonably large pair of policies, or unusually large number of policies, I don't know why they would charge more.

I'll ask her what the additional fees would be, but it seemed like she was making it sound that it would be more expensive than just getting a single policy that covers the upper-ceiling amount that we want. We'd be looking for a couple. Possibly now a $1mil, $700k and then $300k