Author Topic: Term Life Insurance Recommendation  (Read 9718 times)

clarkm04

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Term Life Insurance Recommendation
« on: July 23, 2014, 06:25:46 AM »
My DW and I are shopping for level term life insurance coverage for 20 years and 250 K each.  I received a rate from our State Farm agent who handles our house & vehicles, but it seems a touch high.

Just wanted any company recommendations of where to go to price compare before locking into a policy.

Thanks in advance!

Cheddar Stacker

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Re: Term Life Insurance Recommendation
« Reply #1 on: July 23, 2014, 06:52:12 AM »
For comparison through our broker, my wife's policy is 20 yr $300k and annual premium is $170ish.

ADK_Junkie

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Re: Term Life Insurance Recommendation
« Reply #2 on: July 23, 2014, 08:20:47 AM »
Go to Geico's website www.geico.com.
Look towards the bottom of the page, under "Geico Portfolio" you will see a link for "Life Insurance" (select it).

After putting in certain variables (including zip code, age, etc.), you will get a series of quotes.  You can see what the prices are at different levels of coverage (and even by payment plan: annual, semi, monthly, etc.).  Play around with the numbers.  You may determine there is a sweet spot (i.e., $500K is only pennies more than $250K).  As an aside, be sure to consider the impact of inflation on the policy coverage.

These quotes are actually generated by LifeQuote.com (but going through Geico reduces the chance you need to enter your email address for spam).

I'd use these quotes as the benchmark for discussions with your Agent.  Don't be afraid to go outside your agent for better pricing on insurance coverage.

Good luck.

dandarc

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Re: Term Life Insurance Recommendation
« Reply #3 on: July 23, 2014, 08:35:36 AM »
Go to Geico's website www.geico.com.
Look towards the bottom of the page, under "Geico Portfolio" you will see a link for "Life Insurance" (select it).

After putting in certain variables (including zip code, age, etc.), you will get a series of quotes.  You can see what the prices are at different levels of coverage (and even by payment plan: annual, semi, monthly, etc.).  Play around with the numbers.  You may determine there is a sweet spot (i.e., $500K is only pennies more than $250K).  As an aside, be sure to consider the impact of inflation on the policy coverage.

These quotes are actually generated by LifeQuote.com (but going through Geico reduces the chance you need to enter your email address for spam).

I'd use these quotes as the benchmark for discussions with your Agent.  Don't be afraid to go outside your agent for better pricing on insurance coverage.

Good luck.

Looks like 1,000,000 is potentially cheaper than 800,000 for me?  That's interesting.  Timely for us - looking to cut back from a 30 year policy we bought in our pre-mustache days.  Looks like 10 and 15 year policies are pretty close in price, while there is a pretty big jump to 20 years.

clarkm04

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Re: Term Life Insurance Recommendation
« Reply #4 on: July 23, 2014, 08:47:36 AM »
Go to Geico's website www.geico.com.
Look towards the bottom of the page, under "Geico Portfolio" you will see a link for "Life Insurance" (select it).

Cool.  I like this feature a lot.

COlady

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Re: Term Life Insurance Recommendation
« Reply #5 on: July 23, 2014, 09:37:09 AM »
Following are some quotes I received for 30 year $1M term.  It might be helpful for your comparisons. Is a 30 year policy a bad idea?? Opinions??


30 Year - $1,000,000
Carrier Product / Health Class Calc Age Base / Riders
Total Premium
(Monthly)
American General Life Companies - All
states except NY (AGL)
AM Best A
AG Select-A-Term (30 yrs)
Preferred Plus Nontobacco
NOTE: For tabling ratings E-H, please
contact AG home office. Face amounts
above $5 million are not available with
WOP Rider.
Nearest Age 31 Base $54.60
WOP $8.74
$63.34
SBLI (Savings Bank Life Insurance Co of
Mass)
AM Best A+
Level Premium Term 30 (guar 30)
Preferred Plus Non-Nicotine
NOTE: Rates effective July 01, 2014.
Waiver of Premium Rider is not be available
if Premium is greater than $10,000
Nearest Age 31 Base $52.20
WOP $11.31
$63.51
Banner Life
AM Best A+
OPTerm 30 (guar 30)
Preferred Plus Non-Tobacco
NOTE: Rates effective 03/31/2014
Nearest Age 31 Base $53.38
WOP $13.13
$66.50
Prudential Financial
AM Best A+
PruTerm WorkLife 65
Preferred Best Non Smoker
NOTE: Term to age 65. Unemployment
and disability waiver included in Total
Premium. Level premiums until age 65.
Actual premium determined after
underwriting.
Actual Age 30 Base $70.65
WOP $0.00
$70.65
United of Omaha
AM Best A+
Term Life 30 Answers (guar 30)
Preferred Plus Non-Tobacco
NOTE: Rates effective 07/01/2014. Actual
premium will be determined by carrier and
may differ from this quote.
Actual Age 30 Base $59.72
WOP $11.38
$71.09
Transamerica Life Insurance Co.
AM Best A+
Trendsetter Super (30 yrs)
Preferred Plus
NOTE: Rates effective 06/18/2012
Nearest Age 31 Base $55.13
WOP $18.38
$73.50
Principal National Life Insurance Company
AM Best A+
Term Insurance (30 yrs)
Super Preferred Non Tobacco
NOTE: Rates effective 1/21/2014.
Use Drop Ticket for PFG TeleApp or
Accelerated Underwriting Program.
Actual premium determined by carrier and
may differ from this quote.
Nearest Age 31 Base $57.54
WOP $17.85
$75.39

Cheddar Stacker

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Re: Term Life Insurance Recommendation
« Reply #6 on: July 23, 2014, 10:15:13 AM »
Following are some quotes I received for 30 year $1M term.  It might be helpful for your comparisons. Is a 30 year policy a bad idea?? Opinions??

What are your reasons for insuring? Spouse, kids, mortgage, etc.?
How long until you are FI?

These are important factors. My wife and I didn't obtain any life coverage (outside what my work provided) until we were around 30 and expecting a child. I hope to drop my wife's coverage in a year or two (6-7 years into the 20 year term) because our net worth will be plenty to fill in the financial void left behind if she were to pass on. I hope to drop my coverage about 12 years into the 20 year term when we will no doubt be FI and working toward a comfortable RE.

GGNoob

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Re: Term Life Insurance Recommendation
« Reply #7 on: July 23, 2014, 11:29:58 AM »
My DW and I are shopping for level term life insurance coverage for 20 years and 250 K each.  I received a rate from our State Farm agent who handles our house & vehicles, but it seems a touch high.

Just wanted any company recommendations of where to go to price compare before locking into a policy.

Thanks in advance!

My wife and I (27 and 26) purchased insurance through ZanderIns.com. We both have 20-year term for $250k. I pay $188 and she pays $135 a year.

socaso

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Re: Term Life Insurance Recommendation
« Reply #8 on: July 23, 2014, 11:37:41 AM »
We got life insurance when we were 36-female and 40-male. $650k each. Husband's cost about $80 and wife about $50 monthly through State Farm.

aj_yooper

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Re: Term Life Insurance Recommendation
« Reply #9 on: July 23, 2014, 11:52:50 AM »
We used SelectQuote.  Rates are competitive on the internet, but not so much from local agents typically.  We purchased 15 year term when we retired as a counterweight to losing a pension early on in our retirement.  Term insurance has its uses.

frugalnacho

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Re: Term Life Insurance Recommendation
« Reply #10 on: July 23, 2014, 01:58:08 PM »
I found the best rate by going through an agent (despite the fact that they take a cut they were still able to get it cheaper than I got quoted on my own).

I pay $222/yr for a $250k 20yr policy. 

Scandium

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Re: Term Life Insurance Recommendation
« Reply #11 on: August 05, 2014, 01:42:18 PM »
Expecting a baby so we need insurance. I'm thinking I'll go higher now, and hopefully be able to go with a lower amount after 5-10 years (or so) when a) we have more savings and b) the kids is older.

Any reason to not go with a 10 or 15 year plan now, and get another (lower) 10 year plan for the teenage years? Those are cheaper than going with a 20 year plan now, although I realize I don't get the price lock in. I have no idea how the prices will be in 10 years. If I plan  to have it for 20 years is it best to just get that now?
Although I can't imagine needing the same coverage when the kid is 15 as when it's 1..
« Last Edit: August 05, 2014, 01:44:30 PM by Scandium »

Cheddar Stacker

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Re: Term Life Insurance Recommendation
« Reply #12 on: August 05, 2014, 02:08:12 PM »
Scandium, you might want to consider a ladder system.

Get 2 or 3 policies. Let's say you want $1M in coverage for now, but will likely need less later since you will have a higher net worth.

Buy a 20 year policy with $500K coverage.
Buy a 15 year policy with $200K coverage.
Buy a 10 year policy with $300k coverage.

Buy them all now, then just let them run out when you're ready. The beauty of this is you are locking in all the rates at a younger age. If you wait 10 years and get a new policy it will be more expensive. Maybe there's a flaw in this plan, and I just thought of it now, but it seems to make some sense.

Scandium

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Re: Term Life Insurance Recommendation
« Reply #13 on: August 05, 2014, 02:15:26 PM »
Scandium, you might want to consider a ladder system.

Get 2 or 3 policies. Let's say you want $1M in coverage for now, but will likely need less later since you will have a higher net worth.

Buy a 20 year policy with $500K coverage.
Buy a 15 year policy with $200K coverage.
Buy a 10 year policy with $300k coverage.

Buy them all now, then just let them run out when you're ready. The beauty of this is you are locking in all the rates at a younger age. If you wait 10 years and get a new policy it will be more expensive. Maybe there's a flaw in this plan, and I just thought of it now, but it seems to make some sense.

That's an interesting setup. Will have to look into that. Although i suspect it will be more now than a single 20yr/$1mill policy. But locking in at 30 might make up for that, vs getting a new one at 40-45

Also thought of more reasons we'll need less later
c) paid of more of the mortgage
d) have more in 529 plan.

cynthia1848

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Re: Term Life Insurance Recommendation
« Reply #14 on: August 05, 2014, 02:42:53 PM »
I have $1.5M in life insurance for $1300/year (I had some health issues when we got the policies).

My DH has $2.5M in life insurance for 600/year.

Both 10 year term, expiring in about 5 years; we got them when we were 29 and 32.

Scandium

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Re: Term Life Insurance Recommendation
« Reply #15 on: August 05, 2014, 03:42:22 PM »
I have $1.5M in life insurance for $1300/year (I had some health issues when we got the policies).

My DH has $2.5M in life insurance for 600/year.

Both 10 year term, expiring in about 5 years; we got them when we were 29 and 32.

Holy... $2.5Mill? I was thinking of doing $800K on me. $300k mortgage, plus some extra. Am  I dooming my wife to life in squalor? The eternal question of how much life insurance I need..? Guess I need to study it some more

Cheddar Stacker

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Re: Term Life Insurance Recommendation
« Reply #16 on: August 05, 2014, 05:44:12 PM »
Someone posted some good advice on another insurance thread a few days ago.

Never get so much insurance that someone might consider ending your life intentionally.

GGNoob

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Re: Term Life Insurance Recommendation
« Reply #17 on: August 05, 2014, 05:54:41 PM »
Someone posted some good advice on another insurance thread a few days ago.

Never get so much insurance that someone might consider ending your life intentionally.

That's probably a good point!

My wife and I have just enough in a 20-year term policy to cover our debt. Then I have a little more through my work for incredibly cheap. Without the debt, my wife and I could each live well off on our own since we do not have any kids.