Poll

What is your Life Insurance Plan?

Privately paid Annual Term Life, Continuously renewing
Company Life Insurance (Group Term Plan paid through work )
Whole or Universal  Life (Permanent Coverage)
5,10 or other Traditional Term Life
None -- I am covered by my 'Stache
None - I don't need it (no one to give it to)
None - Its too expensive to think about, go away
Variable Life (Combo variable Investment / Life Insurance)
Other

Author Topic: Term Life Insurance  (Read 3476 times)

Goldielocks

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Term Life Insurance
« on: November 18, 2015, 06:41:48 PM »
We have 1 year continuously renewable Term life insurance, and I received the annual pricing letter today.
Boy, does being a Mustachian early really pay off!

The rates for term life insurance (per $25k) jump by 250% from age 39 to age 46.   I am really glad that we will be ending or greatly reducing life insurance by the time we are 45 years old, before that rate increase.  That's a jump from $400/yr to over $1000/yr in only 7 years.   (for the amount we purchase).

What about you -- what is your Life Insurance plan -- fixed term, none, private, group company provided, Whole life, other?

elaine amj

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Re: Term Life Insurance
« Reply #1 on: November 18, 2015, 08:20:42 PM »
Wait...what?

Honestly, we bought DH's term life insurance many many years ago and haven't looked at it again. As I've been working on FIRE plans, I've been thinking that it is next on the chopping block as our stash can now cover us. He turns 46 next year...are you saying that rates between 45 and 46 will jump sky high? I'll make sure we cancel before his birthday next year then! I was trying to figure out when a good date to cancel would be. He pays about $400/yr for his term life right now.

Goldielocks

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Re: Term Life Insurance
« Reply #2 on: November 18, 2015, 08:41:56 PM »
Well, we have a plan through manulife, and the age brackets are 36-40, 41-45, 46-50. 
We have the low rates for engineers...

At age 45 to 46, there is a jump from $29/yr per $25k coverage to $48.36/yr per $25k coverage... for my DH who is a non-smoker. 
Women are much less to cover.

If we needed $500k of coverage, it could be as high as $1000 per year for him alone, up from $330 year ago.  Good thing we don't need that.

mxt0133

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Re: Term Life Insurance
« Reply #3 on: November 18, 2015, 09:29:58 PM »
Dam after all this time I still don't know how to take a survey.  Sorry I clicked on the wrong option, I selected the first one when it should have been the 4th option.  I got a 30 year term when my wife was pregnant, that with SS survivor benefits for our now three kids it will be more than enough for her to stay home and possibly pay for part of their college education.  But when I get to my FI number i'll review and more than likely cancel as it will no longer be needed.

MrFrugalChicago

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Re: Term Life Insurance
« Reply #4 on: November 19, 2015, 10:06:53 AM »
I have a simple 500k policy 30 year fixed. So kinda "expensive" at the start, but it gets slightly cheaper every year due to inflation. By the time 30 years is up I will be well into retirement, so no need for insurance.

roadtrippers

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Re: Term Life Insurance
« Reply #5 on: November 30, 2015, 05:47:19 PM »
I clicked the wrong one, too--we have term life for 25 years (no face punches please!) with 15 more to go, though we will cancel before that.

deborah

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Re: Term Life Insurance
« Reply #6 on: November 30, 2015, 07:17:47 PM »
As it is something you need to opt out of in some other policies that included it, I have argued with many people over the years and have ended being able to opt out of it every time. I have never wanted it, and have saved a lot by not having it.

Goldielocks

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Re: Term Life Insurance
« Reply #7 on: December 01, 2015, 10:21:33 AM »
Great discussion so far. Deborah, are you referring to opting out at work?  If not, can you share?

deborah

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Re: Term Life Insurance
« Reply #8 on: December 01, 2015, 02:33:45 PM »
Great discussion so far. Deborah, are you referring to opting out at work?  If not, can you share?

Sometimes term life is bundled into other policies. For instance, in Australia, our superannuation (read IRA etc) usually has some form or term life or similar included because it is pre-tax rather than post-tax dollars and is a bulk deal, and thus (according to everyone) cheaper. As the policies I know about where this occurs are Australian, I left out the details as not relevant to most people on the forum, but if they are bundled in one way here, they may be bundled in another way elsewhere. There was an element of term life in disability insurance I got at one stage.

newton

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Re: Term Life Insurance
« Reply #9 on: December 03, 2015, 07:04:14 AM »
Combination of 3 of the above.  Term, whole life, and work provided.