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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: cincystache on May 27, 2019, 02:29:10 PM

Title: Term Life Insurance Reco
Post by: cincystache on May 27, 2019, 02:29:10 PM
We are having another kid in the fall and I'd like to buy another 20 yr term life policy.

I currently have a 2 year old policy with Haven Life and have been happy with them.

Is there any benefit to diversifying and getting a policy with a different company? Should I get a second policy with Haven?

Any advice?
Title: Re: Term Life Insurance Reco
Post by: ice1717 on May 28, 2019, 12:09:04 PM
A few considerations:

The rate you get and what your thoughts are on simplicity: If you pass away, your insurance beneficiary will need to contact the insurer and provide paperwork to receive the death benefit. There is a dollar amount difference I would pay so my spouse would need to do that with two companies, but not a significant amount.   

The amount you currently have, if you need a medical test for the new policy, and the rate you get:  With most companies if you have over a certain dollar amount you need to take increasing levels of invasive medical tests.  Depending on your health, it may make a difference to what kind of rate you will pay and how much you will be approved for.