Term Life Insurance


A

akhan

Hello,

I am interested in buying life insurance for myself and wife, I do have
a life insurance from my employer, but I would like to have something
on my own for my family. Any and all advice are welcome, what to look
for, specific companies to go with. Thanks.

Abid
 
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F

fin

Hello,

I am interested in buying life insurance for myself and wife, I do have
a life insurance from my employer, but I would like to have something
on my own for my family. Any and all advice are welcome, what to look
for, specific companies to go with. Thanks.
I'm in this hunt too. One thing I think I've found is that the
process is a bit easier and less invasive in terms of health physical
if you get group term insurance through a professional organization
that you belong to versus individually underwritten insurance.
 
J

joetaxpayer

Hello,

I am interested in buying life insurance for myself and wife, I do have
a life insurance from my employer, but I would like to have something
on my own for my family. Any and all advice are welcome, what to look
for, specific companies to go with. Thanks.

Abid
Yes, avoid getting 'sold' any whole life policy. Your subject line says
term, and you should go with that. There are many reputable companies,
big names in the business. You should spend some time calculating the
amount that makes sense for each of you. As time passes, mortgage paid,
college funded, the cost for the next ten years of term would go up due
to your aging 10 years, but your need for insurance would be less.
JOE
 
C

Cal

Hello,

I am interested in buying life insurance for myself and wife, I do have
a life insurance from my employer, but I would like to have something
on my own for my family. Any and all advice are welcome, what to look
for, specific companies to go with. Thanks.

Abid
Hello Abid;

What you are looking for is a policy that YOU own, and would be available
to your family no matter where you are working. That means that YOU will
have to apply directly to a company to issue a policy to YOU.

In my personal Opinion, you should be looking at some type of PERMANENT
Policy (as against Term) that will be IN-FORCE on your Death. Term is much
cheaper to buy, but much more expensive to have owned, if it is not in force
on your death.

The name TERM implies that it has a beginning and an ending.ie:
10Yr, 20Yr, Age 65. If you live beyond one of those dates, then it has
been an expensive policy that you did not need. AND when you DIE,
there would be no insurance in force.
Cal Lester CLU
 
C

Cal

I'm in this hunt too. One thing I think I've found is that the
process is a bit easier and less invasive in terms of health physical
if you get group term insurance through a professional organization
that you belong to versus individually underwritten insurance.
You missed the part where he states that he wants something "ON MY OWN".
Cal Lester CLU
 
C

Cal

Hello,
Yes, avoid getting 'sold' any whole life policy. Your subject line says
term, and you should go with that. There are many reputable companies, big
names in the business. You should spend some time calculating the amount
that makes sense for each of you. As time passes, mortgage paid, college
funded, the cost for the next ten years of term would go up due to your
aging 10 years, but your need for insurance would be less.
JOE
A VERY big supposition. Possible but YOU are taking the RISK rather
that the insurance company!!!!!!!!!!!!!!!!!!!
Cal Lester CLU
 
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J

joetaxpayer

Cal said:
A VERY big supposition. Possible but YOU are taking the RISK rather
that the insurance company!!!!!!!!!!!!!!!!!!!
Cal Lester CLU
Cal, given that whole life policies often run 10x the cost of term, and
that logic tells me that one's need for insurance drops as life event
pass as I list above, you are welcome to elaborate on your view. As
one's savings increases and obligations decrease, it seems to me that
the windfall insurance would provide is un-needed, and the money better
spent.
JOE
 
W

woessner

joetaxpayer said:
Cal, given that whole life policies often run 10x the cost of term, and
that logic tells me that one's need for insurance drops as life event
pass as I list above, you are welcome to elaborate on your view. As
one's savings increases and obligations decrease, it seems to me that
the windfall insurance would provide is un-needed, and the money better
spent.
I have to agree with Joe on this one. I think you're much better off
getting term life insurance and investing the difference (between whole
and term). Your investment can enjoy the benefits of the usual tax
shelters (401k, IRA) and you'll get a better rate of return than with
whole life insurance. And you can reduce your term policy as your need
for insurance decreases.

--Bill
 
W

Will Trice

Cal said:
If you live beyond one of those dates, then it has
been an expensive policy that you did not need.
Bull. I have a need for insurance on my house. I won't regret having
had it if my house does not burn down. It still satisfied a need (i.e.
risk mitigation).

-Will
 
D

Don

I have to agree with Joe on this one. I think you're much better off
getting term life insurance and investing the difference (between whole
and term). Your investment can enjoy the benefits of the usual tax
shelters (401k, IRA) and you'll get a better rate of return than with
whole life insurance. And you can reduce your term policy as your need
for insurance decreases.
Unless I am mistaken, it would be possible to do some fairly straightforward
calculations to settle this issue. Compare the value of whole life insurance
after a fixed time period to the value of term insurance plus an index fund
that equals the same amount of money. Such calculations could be more
meaningful in this case than similar calculations for other purposes,
because you are looking at a rather long time period and the temporary
fluctuations in the stock market would not bias the results.
 
C

Cal

Cal, given that whole life policies often run 10x the cost of term,
and
that logic tells me that one's need for insurance drops as life event pass
as I list above, you are welcome to elaborate on your view. As one's
savings increases and obligations decrease, it seems to me that the
windfall insurance would provide is un-needed, and the money better spent.
JOE
I do not want to beat this dead horse over again. You are obviously a firm
believer in TERM, whereas I am not. I DO believe that Term has it's place,
and when purchased intelligently from a knowledgeable agent, that it does an
excellent job.
BUT, to say that Term is BEST for all situations, is very dangerous. Oh by
the way, I have NEVER had a Beneficiary refuse a Death Benefit check when
the breadwinner died and there was already a great deal of money floating in
the market.

Cal Lester CLU
 
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C

Cal

Will Trice said:
Bull. I have a need for insurance on my house. I won't regret having had
it if my house does not burn down. It still satisfied a need (i.e. risk
mitigation).

-Will
Granted, but you are talking about a Casualty Coverage, not life.
In the same vain, would you consider paying a bit more for your
house insurance or car insurance, and receiving an income
for life at some later date if your house does not burn, or you do
not demolish your car????
Cal Lester CLU
 
C

Cal

I have to agree with Joe on this one. I think you're much better off
getting term life insurance and investing the difference (between whole
and term). Your investment can enjoy the benefits of the usual tax
shelters (401k, IRA) and you'll get a better rate of return than with
whole life insurance. And you can reduce your term policy as your need
for insurance decreases.

--Bill
Neither you nor Joe take into consideration the fact that there is a
possibility that the Term Policy will die before you.................
Cal Lester CLU
 
T

Todd H.

Cal said:
You missed the part where he states that he wants something "ON MY OWN".
Cal Lester CLU
No actually I didn't Cal.

There are a few levels of "on my own" to the layman. The first
priority is to have it be independent of a given employer since people
tend to change jobs a lot.

Group term life policies from a trade group, however, achieve that
goal with cost and terms benefits over individually underwritten term
life.

There are pros and cons, but it is an option that someone seeking to
have something outside of their employer should have a look at if
there's a professional organization to which they already belong that
offers this.
 
A

akhan

I have to agree with Joe on this one. I think you're much better off
getting term life insurance and investing the difference (between whole
and term). Your investment can enjoy the benefits of the usual tax
shelters (401k, IRA) and you'll get a better rate of return than with
whole life insurance. And you can reduce your term policy as your need
for insurance decreases.

--Bill
Thanks everyone, that's exactly the reason I am thinking about TERM, it
is cheaper and does satisfy the need, what I am trying here is to have
a reasonable amount of insurance for family, just in case any thing
happen to me my wife can take care of kids without having to worry too
much about finance, and same applies to me in case any thing happens to
her I have to make some tough choices between working full time or
spending more time with kids who are still very young (9 and 3), so in
other word it is bad enough that you lost your life partner the next
bad thing is to deal with finances, any suggession about which company
to go with, my (auto/home) insurance company keep sending me mail about
life insurance.
 
T

Todd H.

Cal said:
Neither you nor Joe take into consideration the fact that there is a
possibility that the Term Policy will die before you.................
Cal Lester CLU
For many folks (particularly parents of young children whose goal is
simply to insure against their own untimely death before their kids
reach college and can fend for themselves), if that the term expires
before they do, it would be entirely okay.
 
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C

Cal

No actually I didn't Cal.

There are a few levels of "on my own" to the layman. The first
priority is to have it be independent of a given employer since people
tend to change jobs a lot.

Group term life policies from a trade group, however, achieve that
goal with cost and terms benefits over individually underwritten term
life.

There are pros and cons, but it is an option that someone seeking to
have something outside of their employer should have a look at if
there's a professional organization to which they already belong that
offers this.
The operative word here is "IF".
Cal Lester CLU


======================================= MODERATOR'S COMMENT:
Please trim the post to which you are responding. "Trim" means that except for a FEW lines to add context, the previous post is deleted.
 
C

Cal

So what happens when your term policy expires? Well, there are 2
possibilities. Either you still need life insurance or you don't. If
you don't need insurance, so much the better. If you do need life
insurance, chances are you need considerably less insurance than you
did when you bought your previous term policy. So you adjust
accordingly. Of course, the premiums will be higher, because you're
older.
Or the possibility that you become UNINSUREABLE during
that period......

Cal Lester CLU



But that will be offset by A) needing less benefit and B)
having saved a mint by not buying whole life insurance in the first
place.

Perhaps you're operating under the assumption that there is always a
need for life insurance? I don't share that belief, but I'm sure there
are many out there who do. Hence the market for whole life insurance.

--Bill

======================================= MODERATOR'S COMMENT:
Please trim the post to which you are responding. "Trim" means that except for a FEW lines to add context, the previous post is deleted.
 
C

Cal

Todd H. said:
For many folks (particularly parents of young children whose goal is
simply to insure against their own untimely death before their kids
reach college and can fend for themselves), if that the term expires
before they do, it would be entirely okay.
Again, a supposition. I prefer to deal in GUARRANTEES
Cal Lester CLU
 
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T

Todd H.

Cal said:
Again, a supposition. I prefer to deal in GUARRANTEES
Cal Lester CLU
Which is fine. Then waste yer money, err, get the additional value
added that comes with whole life.

For the rest of us who, if we die at 70 years of age don't forsee
people needing $ upon our death, and would much rather have better
control investments, term life insures against untimely death and
allows your dependents to not be financially ruined in addition to
mourning your loss.
 

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