Posted: 3/15/2013 4:45:26 AM EDT
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Been looking into life insurance. Why is it so expensive? I'm only looking at enough for the wife and kids to pay off the house and so far the first quote I got was 3X the cost of home owners insurance. Does the insurance company really feel I'm 3X more likely to die than our house being burned down or destroyed in a tornado? This was for a 20-yr term...which I figured would be the cheapest.
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How old are you? How's your health? Do you smoke? How much insurance are you looking to get? Did you call around to get the best rate? 35, excellent health, non-smoker, non-drinker (too cheap to buy alcohol). This was just the first quote I got from our insurance agent...they guy we have all our insurance through. |
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How old are you? How's your health? Do you smoke? How much insurance are you looking to get? Did you call around to get the best rate? 35, excellent health, non-smoker, non-drinker (too cheap to buy alcohol). This was just the first quote I got from our insurance agent...they guy we have all our insurance through. Call around as prices vary widely. |
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I hate to point this out but you are probably three times more likely to die than your house be destroyed by natural disaster.
It's 100% certain you WILL die at some point. 
There are a lot of houses out there (dare I say 66.6% of houses?) that never get destroyed by natural disaster or fire. 
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Check the web dude. http://www.lbnco.com/ Was a life insurance analyst up until August. Term is hella cheap compared to anything else. Enter you information above and you're good to go.
Assume a Health Class of Standard, as unless you are pristine or better health you will not get anything better. Most people who get preferred just luck out somehow it seems. |
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How old are you? How's your health? Do you smoke? How much insurance are you looking to get? Did you call around to get the best rate? 35, excellent health, non-smoker, non-drinker (too cheap to buy alcohol). This was just the first quote I got from our insurance agent...they guy we have all our insurance through. It pays to shop around. My financial guy set my wife and I up with 20 year term policies a couple months ago. Mine is $315 a year, and my wife is $220. Same age as you, non-smoker and occasional drinker. ETA: $400K policy |
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OP, get another quote. See what type of insurance it is. Have you done an insurance anlysis with an advisor to see how much/what kind you need?
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Make sure you are buying Term Life. Any other type is a quasi investment product not worth the expense 99% of the time. 4073 Not true. Not by a long shot. |
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I feel so mercenary doing this. Shoot, I bet a mod will knock my socks off for trying to do business in GD.
I work for the 3rd largest life insurance brokerage in the south. Currently, the cheapest rates I just ran for a 2nd best class 35 year old male is $57 a month for a million for 20 years. As to the comment above about not quoting above standard, I completely disagree. We employ a whole wing of underwriters that do nothing but argue and debate impaired health risks. If your height and weight are good, your family history is clean, you've never had major surgery, never had cancer and don't have a dangerous job or hobbies, Preferred is simple. Let me know if you want to know more. |
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How old are you? How's your health? Do you smoke? How much insurance are you looking to get? Did you call around to get the best rate? 35, excellent health, non-smoker, non-drinker (too cheap to buy alcohol). This was just the first quote I got from our insurance agent...they guy we have all our insurance through. I'm the same risk profile as you and got a 20 year $1mm policy for $53/month from Banner. |
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Mine is $600k for $80 a month. It is in play until I am 95. Care to elaborate - Whole Life, 20 yr Term, 30 yr Term etc? I'm gonna guess it's a Universal Life. Y'all gotta get with the times! Whole Life's are dead! If you want cash value, there's indexed ULs that play with market trends. But if you're going for life long, permanent coverage to guarantee a death benefit, and not waste many on generating dividends, Universal Life is awesome! |
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... Does the insurance company really feel I'm 3X more likely to die than our house being burned down or destroyed in a tornado? I am guessing you are probably MORE likely than that, even. Houses are rarely lost in fires anymore these days, and not a lot of tornadoes and earthquakes in WI, so the chance of your house being catastrophically lost is pretty miniscule. On the other hand, you could be killed in traffic or an accident at work, or choke on a piece of food, any day. It's far more likely than your house being destroyed. |