I need to get life insurance because my former employer offered it and my current employer offers only a minimal amount ($100k).
I've never had to arrange it myself before. There are tons of options and it seems very confusing.
I am early forties and healthy with no bad habits. I have no idea if having a motorcycle affects it or not.
I need a minimum of millions bucks in coverage.
So does anyone have any advice?
If you are over forty get out your checkbook! I'm 55 with health issues and my $500K policy premiums are killing me... pun intended! Hope I die soon so the premiums stop climbing! [laugh] No good advice, just sympathy. :P Good luck my friend. [thumbsup]
there are two types of life insurance: term and cash value.
term insurance: cheapest since you pay only for the cost of insurance itself. fixed period of time, 1yr, 5, 10, 15, 20, etc. cost to purchase (aka premiums) can increase annually or be fixed for a specific period of time. at the end of the term, that's it and you walk away. think renting or leasing. i use selectquote.com. good people. PM me if you want a contact name and number.
cash value/whole life/universal: there's an investment portion that is either controlled/directed by you or the insurance co. at some point in time there's enough $ built up to pay for future, increasing insurance premiums and you can stop paying premiums and still have the insurance. think owning after paying off the note. this type of insurance can be anywhere from 3-5x more expensive than term insurance. the key here is not to focus on the premiums, but how soon, using realistic expectations, one could reasonably stop making payments.
insurance companies ratings: obviously you want the company to be able to pay when needed, so it's important to get a policy from a highly rated company. that said, even big companies go under. on the other hand, anytime an insurance company gets into financial trouble, the industry pulls together and bails it out to maintain consumer confidence in life insurance. going with a reputable well-known company or broker should cover that.
having a motorcycle will not get you rated (aka having to pay more), racing one will as will/might skydiving, smoking, and having various health issues. for $1MM of coverage, you will have to provide a blood and urine sample. your medical records will be reviewed. don't lie on the application. there's this thing called the Medical Information Bureau that crosschecks all of your medical info and will have info if you have ever been rated (assessed a non-preferred rating), denied insurance, or are trying to get an absurdly amount of coverage relative to your need or income.
good luck. Ciao!
I'd give you free advice, but per my other thread on neighbors.........
I should charge you for advice.
make the beast with two backs that
1. List no bad habits
2. Lie about motorcycles
3. Lie about anything else to lower your premium
4. Read fine print to see what would happen if you died and violated one of the "lies" you marked down.
But as everyone else has said..........get out your checkbook. It is amazing how much life insurance goes up as you get older.
I remember a risk class in college where it showed a graph of premiums as you get older. Let me see if I can find that text book and I can possibly lend it to you. Sure, it is a college text book, but the information in it is invaluable. It really is.
I started buying private life insurance when I could afford the premiums. I think it was around when I was 24, so they are dirt cheap and will never really increase.
I now have enough insurance to pay off my condo and car for my wife, as well as cover funeral expenses, and then leave her some extra money to spend on herself or keep for a rainy day. There are lots of things we want to do together in life and hopefully I have enough left over so she can continue her dreams.
Shopping around is a good idea too. Don't believe those make the beast with two backss that want to come to your house in the evening and give you a pitch on what you should buy. Do your research and then maybe invite them over, but they will harass you til the day you actually die.
PM me if you want any more info and I'd be glad to assist.
When my parents re-did their will a few years ago, I was named the Executor (My Dad, of course the Patriarch of my family.......we are old school and my Mom abides to it as he is the ultimate decision maker) by my Dad. I was a bit shocked he chose me over my oldest brother who is an attorney and middle brother who is a doctor. He thought I have the most level, calm head, and would make the right decisions. So I attended several legal meetings with them and went over all their premiums, policies, etc etc, so I cut my teeth good into it.
Plus, once you fully max out your policy and you feel you don't need that much insurance, you can cash them out or borrow out of them so when you do pass, there is no pay out. You basically get your payments back. Of course, this is a bit complicated and I can't remember the exact details as I am sure there is a penalty for pulling it or a tax.
If you have a good friend that has a Series 5 License (I think that is the proper financial liencse or maybe it is a Series 6, but I know it isn't a 7), speak with them.
If you do go the route of working with an agent..........make sure you fully trust them and helps if they are a friend because they will be honest and won't hide shit from you.
Good luck and hope those policies only mature when you are well into living a full and of course fulfilled life.
I think topics like this should be included in high school curriculum's, as well as more personal finance.
I'd say a class like this would benefit more of the population than a make the beast with two backsing calculus class.
Thanks for the input.
I'm still baffled. There are so many options, Whole Life, Term, Variable Life, Universal Life. I guess I need to find a decent insurance agent and go talk to them.
Cyrus- I'm in construction and if we were neighbors, you could borrow my tools. I read your "neighbor rant" and think the guy is complete douche.
You are right. It seems as an adult no one taught me a few things that would be handy to know.
R-ciao - thanks for all the info. I checked out that site.
the fountain of youth is located at ...(PM for details).
thats my insurance policy.