Posted: 9/5/2012 8:27:08 PM EDT
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I'm thinking of buying a life insurance policy. I'm only 31 years old and in very good health (5'8", 180lbs, non-smoker) I have no children or spouse, but I have my father living with me who I take care of and I'd rather not leave him stuck with my underwater mortgage and no place to live. I'd also like to leave something to my family. I'm hoping for some recommendations of companies to look into. I know none of you have had to use your policy yet, or you wouldn't be around to give a review, but I'm hoping someone has had experience with a family or friend who had a policy, or other experience. I'm considering a Term Life policy right now, 10 or 20 years, $250K-$500K. I'll look into something more permanent if I ever choose to start a family. |
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The only advice I have is to avoid Whole Life policies.
They are a hybrid that do neither well. Since you have a specific reason for your insurance a term life policy sounds about right. (You need the coverage while your dad is with you but not for any other contingencies). I don't know if term insurance is a good deal financially but it seems to be a good candidate to cover the risk you want covered. |
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I've delivered some death benefit checks in my day, if that's what you mean by "having experience." I've also picked up the pieces for families that did not have life insurance. The former is more fun.
Sounds like a good plan to me. I'd go for $500k, if that'll fit your budget, and if you plan to have a family someday, because you'll want that much eventually, and it'll only get more expensive if you wait. $250k otherwise. Regarding permanent insurance, you could convert a chunk of your term when its time (assuming a convertible policy––most are.) |
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the rates change a lot, and as long as it's not some fly by night policy, there isn't a ton of variation like there can be with disability insurance. I would (did) find a reputable agent and buy a term policy. My wife and I are both 29 and pay about $100/month (I pay a little more, she pays a little less) for $1 million, 30 year term policies. 10 years of your income is a good ballpark when trying to determine how much to buy. |
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Stick with Term Life Insurance and avoid whole or any other cash value policy!
I would recommend you start with Select Quote. I bought a Term Life policy (20 years) when I was about 35 y/o for $750k and it only cost me $40 per month. Not bad at all if you ask me...peace of mind for my wife and kids. |
| Term is the only way to go. I would look at longer than ten year term though if you plan on having a family someday. You can always drop a policy whenever but something might happen to you between now and when the ten year expires that would make renewing dry expensive or even impossible. Check rates on 30 yr term. |
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Quoted: Term is the only way to go. I would look at longer than ten year term though if you plan on having a family someday. You can always drop a policy whenever but something might happen to you between now and when the ten year expires that would make renewing dry expensive or even impossible. Check rates on 30 yr term. To be fair (and before the whole life agents crawl out of the woodwork) It's not the "only" way to go, but chances are, if you don't already know why you want whole life, you don't need it. It's not a bad idea to look at a 30 year term. Maybe even with return of premium if you want to get something out of it at the end of the term. |
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Quoted: So, what happens when the GVUL available through my employer is cheaper than the Term policy I've priced out from AAA? Who else is good? If you can continue that coverage after you leave your employer, then it's likely a good deal. But Universal vs Term is generally much more expensive. You gotta pay those fat commissions first... |
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Quoted: I ended up applying for a 20 year term, $550K policy for $36.90 a month from MetLife. I have a small $100K policy with them through work, the insurance rep said I might get a discount for having a prior policy. Hello, Life Insurance Analyst here. It all depends on your risk rating really. Based on your physical terms that you gave us (which are very limited 4 me to even begin to guess at your rating) you should be able to get a standard plus, maybe even a preferred policy unless there is a very unfavorable medical history. Even your state of residence affects your rating and ultimately your premium. MetLife will not give you a discount based on your work policy, as that is a group policy and those fall into a whole different and confusing category. They may however give you a discount if you have some other kind of insurance such as auto or homeowners through them. A good tool to use is term4sale.com or lbnco.com as these run off of COMPULIFE, which does most of the major comparisons for agents in the US. Assuming you get a preferred rating you could get a policy as low as $31.00 a month; that $6 difference does not seem like much but adds up over the years and why waste money (plus makes a difference in conversion to a new product). BUT the most major thing to consider in any term life product is the conversion options for the policy. Most of them are for the level term period (the 20 years in this case, as you can continue the policy past that as an Annual Renewable Term which blows major donkey) or until age 70. Make sure that it is convertible to a Universal Life product. Whole Life & Variable Universal Life are quite simply terrible and market sensitive products. Also avoid anything with "Indexed" in the title like the black plague. And make sure it is convertible for the full life of the product, some are only convertible for the first 5 or 10 years, and that is how they get you scammed. By the time you realize its the 19th year you've got a preexisting condition and they can SUPER JACK your rate as you must completely reapply. Conversion means keeping you risk rating (hopefully preferred or super preferred). ALSO ALWAYS PAY YEARLY. Depending on the premium rate you may pay as much as 37% extra paying monthly. Any questions, feel free to shoot me an email as I am a fountain of knowledge on this shit. Goes for anyone. edit: Saw someone else mention 30 year terms. They are great, as you get to keep your preferred conversion rating that much longer, however be sure to make sure it is convertible the full time again. |
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Quoted:
It all depends on your risk rating really. Based on your physical terms that you gave us (which are very limited 4 me to even begin to guess at your rating) you should be able to get a standard plus, maybe even a preferred policy unless there is a very unfavorable medical history. Even your state of residence affects your rating and ultimately your premium. Thanks for your help with this. 
I live in Florida, I'm not sure if that would be good or bad for my rates. As far as my health, both of my parents are still alive and neither have any serious health conditions, but my mother is anemic and hypoglycemic. There is a history of diabetes in my father's family, but neither of my parents are diabetic. My maternal grandfather has had a heart issues and cancer a couple times, but he's 80 and still working. My blood pressure is low to average. When I was at MEPS 22 months ago, my BP was 94/62. I'm probably considered overweight at 5'8" and 185 lbs, but I'm in decent shape (32 inch waist) BUT the most major thing to consider in any term life product is the conversion options for the policy. Most of them are for the level term period (the 20 years in this case, as you can continue the policy past that as an Annual Renewable Term which blows major donkey) or until age 70. Make sure that it is convertible to a Universal Life product. Whole Life & Variable Universal Life are quite simply terrible and market sensitive products.
The terms say it can be converted to a "permanent", policy, but doesn't specify a Universal policy, ALSO ALWAYS PAY YEARLY. Depending on the premium rate you may pay as much as 37% extra paying monthly.[/span]
That's a great idea, I'll see if that option's available. Any questions, feel free to shoot me an email as I am a fountain of knowledge on this shit. Goes for anyone.
Thank you very much, you were a huge help
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No problem at all! And the designations are being issued slightly higher than you'd expect, as they used to basically use the BMI calculation. Now with an enourmous amount of our country grossly obese things have lighted up for some of us who have more than average muscle mass. For example I have a friend who is 5'11" and 230, but has 6% body fat; BMI classified him as morbidly obese but he got a preferred rating on some insurance I found for him. Florida might help with your risk rating, but hurt your premium compared to other states. Too many old people. Also I would ask the agent about that conversion provision for sure, as he should know the specifics of the plan type; I know MetLife does some UL's but has a whole slew of Whole Life products that they swindle. Your family history doesn't look too bad, except for your grandfather. They dont take working into account, but do not like cancer or heart issues. Just shoot me a PM if you have any other Q's or want a consult. |