Who did you use for your term life insurance?

[uspsfanalan]

My wife and I applied for 500k term life insurance with USAA. I'm 32, don't smoke and am relatively fit. I was approved for the policy and pay about $35 per month, I don't remember what classification I was but it was either the most fit or second most fit.

My wife was rejected because she had a heart murmur and she recently lost a baby. USAA asked for a lot of documentation about both conditions / events. Which we provided but she was still denied coverage.

Now I'm starting from scratch, does anyone know of a good term company. I had been hoping to get it done with USAA but that's out the window now.

[Johnny Aloha]

I got a quote with USAA, but ended up going with a local investment/insurance broker.  The local brokers REALLY try to sell you whole life insurance, but don't be fooled.

Their term rates blew USAA out of the water.  I got $1.2M 30 yr term for about $700-800/yr.

I would just google "term life insurance" and you'll find a bunch of online brokers. 

[TheDude]

I originally got a quote from these guys http://www.term4sale.com/. Then I went to my father (who is insurance agent that doesn't write much life) and had him write the policy.

I get my me insurance from ING. I was 26 when i took out my policy. Its a 10 year 500K policy. I pay $155/year I figure when I expires I will self insure.

[uspsfanalan]

Looks like two posts in favor of a local broker. Anyone had an online insurer that they liked?

[chasesfish]

I only did it once, local broker did it through GE Life.

If I were to do it again, I'd just try going through Fidelity.  They're the discount broker I use and I find that they're not the best at anything, but at the top of the list on every product they handle.  Service is great. 

[jamaicaspanish]

ING was the best deal for us.  M45 and F42.  250k, 30yr term.  We're paying under $800/year.

[madage]

Looks like two posts in favor of a local broker. Anyone had an online insurer that they liked?

I went through either term4sale or insweb. Got matched up with American General (an AIG Company) on a $1 million 30-yr term for under $700/year in 2008. I was happy with the process and the ease of completing the transaction after the blood test results came in. I was less happy when AIG needed that huge bailout in late 2008/early 2009, but all is well.

[oldtoyota]

We used USAA so I can't help much in that regard.

If you want prices, we pay (for both policies) around $112/mo. One of us is insured for $500K and the other for $600K. That is a sufficient amount for us.

What was weird is that I think we could not choose to insure for another amount. We've had it for a long time, so I am a bit fuzzy about why we could not choose the amount.

[brewer12345]

Be careful who you choose as an insurer.  There is no FDIC equivalent for insurance companies.  If you insure with a shaky company that goes down, you will not be happy.

OP, I would try an independent broker that can help you figure out who might underwrite your DW.  Shot for the highest rating you can get without paying too much extra, and if possible pick a mutual compay rather than a stock company.

[pdxvandal]

In 2008, I started a 20-year 250k policy through TransAmerica ... pay $225 per year.

Once it expires in 15 years (and my daughter turns 18), I hope to build enough assets to avoid life insurance completely.

I also have a free 150k policy through work, but I don't really count that.

[kkbmustang]

Back in 2007 I went through the Dave Ramsey insurance broker and ended up with a term life policy through GenWorth. $40/month for $750k of coverage. I was about 34 at the time and was pretty healthy, absent pregnancy related complications. They came to my house for the blood test and to answer the medical questionnaire questions. Pretty easy, really.

[judgemebymyusername]

My wife and I have term life through Metlife. They were competitive with the pricing. I won't bother telling you our exact numbers because they will always vary based on the individual. You might also look into Mutual of Omaha. Most of these places will give you a starting quote online, but then as you go through medical tests or questionnaires, those numbers will change. I would second going through a broker, as they will do all of the legwork for you, however, they are going to take a cut of a few bucks a month for the life of the policy.

[lackofstache]

One of the typical questions on any application will be something like " ave you been denied coverage or had coverage cancelled by another provider? If so, why?" If she was outright denied, it's going to be both difficult & expensive to get your wife covered. I wouldn't be worried about finding the best deal in this situation, you'll be lucky to get her insured until time has passed & these issues are no longer a problem. Keep in mind, most insurance companies will write the policies, but include a 2 yr exclusion & if you fib on the policy about previous problems, you'll likely receive your premiums back instead of any death benefit in the event of death. My wife is stuck, at least for several years, with a terribly small, permanent policy we got when we didn't know better because of a now pre-existing condition.

[uspsfanalan]

Damn.... I was afraid of something like that. Maybe we'll go with a smaller policy and see who we can get coverage with. Thanks for pointing that out.

[MoneyCat]

I was rejected for term life insurance for medical reasons as well, which is frustrating for me because I workout a lot to stay healthy.  They assessed the risk and decided they didn't want my money, though, so it is what it is.  I'll just have to make sure I keep living.

[MountainFlower]

Back in 2007 I went through the Dave Ramsey insurance broker and ended up with a term life policy through GenWorth. $40/month for $750k of coverage. I was about 34 at the time and was pretty healthy, absent pregnancy related complications. They came to my house for the blood test and to answer the medical questionnaire questions. Pretty easy, really.

I also got term in 2007 (while pregnant) at 39.  Mine is a $1M policy for $43/month for 20 years.  I used an independent agent with access to multiple life insurance companies. 

[Johnny Aloha]

Be careful who you choose as an insurer.  There is no FDIC equivalent for insurance companies.  If you insure with a shaky company that goes down, you will not be happy.

This is very important.  Make sure the policy is underwritten by a well established company, preferably one that is owned by the policy holders.

[tj]

I would recommend the following:

http://www.terminsurancebrokers.com/


I used them for disability, not life, but they do sell life.

I was told regarding USAA:

USAA’s rates are very competitive at the Preferred Plus risk class, but their underwriting can be tougher than other carriers.  While we are licensed with 30+ companies, USAA does not allow independent agents to sell their products, and therefore you would need to apply with them directly if you prefer them as a company. 

as well as the following helpful information:

Relatively speaking, the premiums for life insurance throughout your 30’s will not change much assuming your health remains the same – the bigger risk to waiting to buy life insurance is developing a health problem that causes you to become uninsurable or requires a lower risk class, and in turn a higher premium.   For example, a 32-year-old with Preferred Plus risk class can get $500k of 30-year term for $385 annually, while a 38-year-old with Preferred Plus risk class can get the same coverage for $525 annually.  The premiums start going up a lot more each year starting in the 40’s – for a 45-year-old, that same coverage would be $970 annually.  However, a 45-year-old with a standard risk class (three risk levels below Preferred Plus)  would pay $2,040 annually for the same coverage.

[warped]

Had same situation - I got mine through USAA, wife was rejected.

Applied through the Dave Ramsey recommended broker - www.zanderins.com.

Did put the reason for denial - sleep apnea - but they'll find that out anyway when they do their own medical background.

USAA has tough underwriting standards, so her insurance is through another company. More than mine for less coverage, but we do have coverage for her.

[Organic_Guy]

I'm new to MMM (found it by accident on a google search actually), so I'm not sure of the etiquette. 

I am a financial services professional licensed in life insurance, annuities, retirement plans and investments. I represent multiple carriers.  My practice is made up mostly of families and my wife and I have 3 small kids of our own. 

If anyone has a question, I might be able to provide a straightforward answer or at least steer you in the right direction. 

[payitoff]

we use Metlife, we currently pay $32 for myself, and $37 for spouse for $500k each, 20 year term

[uspsfanalan]

I would recommend the following:

http://www.terminsurancebrokers.com/


I used them for disability, not life, but they do sell life.

I was told regarding USAA:

USAA’s rates are very competitive at the Preferred Plus risk class, but their underwriting can be tougher than other carriers.  While we are licensed with 30+ companies, USAA does not allow independent agents to sell their products, and therefore you would need to apply with them directly if you prefer them as a company. 

as well as the following helpful information:

Relatively speaking, the premiums for life insurance throughout your 30’s will not change much assuming your health remains the same – the bigger risk to waiting to buy life insurance is developing a health problem that causes you to become uninsurable or requires a lower risk class, and in turn a higher premium.   For example, a 32-year-old with Preferred Plus risk class can get $500k of 30-year term for $385 annually, while a 38-year-old with Preferred Plus risk class can get the same coverage for $525 annually.  The premiums start going up a lot more each year starting in the 40’s – for a 45-year-old, that same coverage would be $970 annually.  However, a 45-year-old with a standard risk class (three risk levels below Preferred Plus)  would pay $2,040 annually for the same coverage.

Thanks for this, I'm still working on getting it finished. I'll check these guys out. My wife has basically thrown up her hands at this whole affair. She isn't very patient with these sort of things.

[Nords]

My wife and I applied for 500k term life insurance with USAA. I'm 32, don't smoke and am relatively fit. I was approved for the policy and pay about $35 per month, I don't remember what classification I was but it was either the most fit or second most fit.

My wife was rejected because she had a heart murmur and she recently lost a baby. USAA asked for a lot of documentation about both conditions / events. Which we provided but she was still denied coverage.

Now I'm starting from scratch, does anyone know of a good term company. I had been hoping to get it done with USAA but that's out the window now.

I realize that being a USAA customer does not necessarily mean that you're a military veteran, but if you are then you could check out one of the many military-affiliated life insurers.  They may be able to underwrite her or offer the two of you a joint policy.

If you tap out from all the other links offered by other posters, you could try LifeInsuranceByJeff.com.  He's a rockstar personal-finance blogger, and he pushes cheap term insurance with an aggregation of automated quotes.  He gets a small affiliate commission if you're referred through his site.


On the other side of the life-insurance bell curve, when I retired my spouse and I both dropped our (term) life insurance and declined the survivor benefits on each other's pensions.  We each have our own pensions along with our savings, and nobody else is depending on us being worth more dead than alive.  We'd rather have the money now than as a bequest to some heir.  A couple years ago we watched a video clip of a similar dual-military-retiree couple who made the same choices on Suze Orman's "How Am I Doing?" segment, and I thought Suze was going to blow a blood vessel when she understood what they'd "given up".

[nottoolatetostart]

We have 2 policies, let alone whatever our employers offer.

Right now, Savings Bank Life Insurance Company of Massachusetts and American General.

I can't wait to cancel these policies when we are FI!