New Life Insurance ?

[AFShadow]

I am going to finally get a life insurance plan and wondering if anyone has an idea of what the outlook looks like for Life Insurance rates in early 2011? are the rates predicted to go up or stay the same? I can get the insurance now or wait a few months after the holidays.

[Lathum]

I have no idea about rates but I would have that decision be dictated more by my situation. If you have a family to provide for in the case of your death I wouldn't wait.

[RomaGoth]

Originally Posted by Lathum

I have no idea about rates but I would have that decision be dictated more by my situation. If you have a family to provide for in the case of your death I wouldn't wait.

this.

[molson]

I don't know anything about life insurance except that when friends lost their parents at a young age growing up - their families were suddenly very wealthy. It seemed odd and creepy, and the payoff seemed to go way, way, beyond "protection" for the family. But if you're young, you can get a lot of value for not a lot of money, so it seems silly to wait for good rates. It seems like the 2nd best thing you can do for your family is buy life insurance, but the best thing you can do is actually utilize it and get the payoff.

[dwardzala]

I don't think life insurance rates fluctuate the same way as consumer goods like TVs or golf clubs.

The rates are set by the companies based on age and other factors, and generally go up as your age goes up. So by waiting you may actually be increasing your rate.

[AFShadow]

I went ahead and signed p and just have to wait for the examine but that won't be a problem. I agreed with those who said just take care of your family as being the top concern.

[digamma]

I've seen this Dateline episode before.

[lighthousekeeper]

Originally Posted by dwardzala

So by waiting you may actually be increasing your rate.

Unless of course scientists discover how to be immortal in the next few months, in which case rates will decrease dramatically and you'll be a sucker.

[Passacaglia]

Does your employer provide life insurance? You may be better off just increasing the coverage they already provide (which will be cheaper), unless you're really set on getting an individual policy of your own.

[Marmel]

It is very rare for your employer to provide enough life insurance. Most of the time you can get up to 3x salary. For a typical guy with a kid, 10x salary should be the very minimum amount of insurance (and that is a conservative estimate).

Employee sponsered is cheaper, yes, but again it is usually not enough and you usually can't take it with you if you leave the job for any reason.

[Marmel]

dola...

Never wait. If rates you go up, you'll be lucky to have locked in. If they go down, you cancel and re-apply for the lower rates (assuming a term policy here). In reality, rates change very seldom so it shouldn't even be taken into consideration. It does get more expensive after each birthday though.

Anyone in CT need life insurance?

[lighthousekeeper]

Originally Posted by Marmel

It is very rare for your employer to provide enough life insurance. Most of the time you can get up to 3x salary. For a typical guy with a kid, 10x salary should be the very minimum amount of insurance (and that is a conservative estimate).

i've never quite understood why so much is recommended. seems excessive to me.

Anyone in CT need life insurance?

Ah that explains it all. It's like Flasch proclamining that everyone needs a real estate agent and preaching the 6% sermon.

[Marmel]

Well, its just a rule of thumb. Say I have a kid that is 5 years old, my wife doesn't work and I make 100K a year.

I die and my wife doesn't want to work (and if she does work, can she just up and make $100k?) and wants to have enough money to either do all of this or more likely some combination....replace my salary until the kid is 18 (say $70k take home per year for 13 years), pay off the mortgage (say $250K), fund the kid's college (100k?), bury me (20k?), donate to a charity/school/scholarship (5K+) in my name to honor me, etc.

The salary replacement is the big thing. College and mortgage are also huge components.

Besides, term for anyone under 40 who is reasonably heathy and doesnt smoke is dirt cheap.

[AFShadow]

Originally Posted by lighthousekeeper

i've never quite understood why so much is recommended. seems excessive to me.



Ah that explains it all. It's like Flasch proclamining that everyone needs a real estate agent and preaching the 6% sermon.

I myself got a 1.8 million for a good price as long as I get that top tier for health. I think inflation adjustment is partly why you need to expect to have so much but i guess it also depends on what is your standard of living now in your working years. A steel worker probably needs much less in retirement than say a lawyer.

[Lathum]

Originally Posted by lighthousekeeper

i've never quite understood why so much is recommended. seems excessive to me.

I think you need to look long term, it isn't about a get rich quick, it is about making up for the income lost over a lifetime, or at least until children are grown up.

Lets say I make 100K, over the next 20 years that is 2 million and in that time I hope to pay off my house, put kids through school, invest in retirement, etc...

If I die with no insurance that all goes to shit for my family, no reason to leave them unprotected.

[molson]

Originally Posted by Lathum

I think you need to look long term, it isn't about a get rich quick, it is about making up for the income lost over a lifetime, or at least until children are grown up.

Lets say I make 100K, over the next 20 years that is 2 million and in that time I hope to pay off my house, put kids through school, invest in retirement, etc...

If I die with no insurance that all goes to shit for my family, no reason to leave them unprotected.

But in the very likely event that your wife remaries - multiple luxury vacation home on Lathum's ashes!!! And nobody has to work!!
I'm not disagreeing with you at all or anyone here, you gotta do it. But as with multi-million dollar wrongful death lawsuits - I always found it way creepy to cash in on a loved one's death to create a lifestyle far in excess of what someone had before the death.

[Lathum]

Originally Posted by molson

But in the very likely event that your wife remaries - multiple luxury vacation home on Lathum's ashes!!! And nobody has to work!!
I'm not disagreeing with you at all or anyone here, you gotta do it. But as with multi-million dollar wrongful death lawsuits - I always found it way creepy to cash in on a loved one's death to create a lifestyle far in excess of what someone had before the death.

If I'm dead either way may as well have my wife profit from it, not like I'm coming back.

[lighthousekeeper]

on my darker days, my thought process runs something like this:
If I die young, I expect my wife to either work or get remarried.

[MacroGuru]

Because of the nature of my job with the amount of travel I do we picked up a policy up on me back in 99 when I started the traveling...we have kept it up since then..even through the 2 1/2 years I was laid off...

It does not cost a lot on the monthly side for the peace of mind that is there for the what if.

[I. J. Reilly]

Marmel: so what would a ballpark figure be for a 1.0m policy on a 36 year old non-smoker? Or is there a lot more to it than that?

[molson]

Originally Posted by Lathum

If I'm dead either way may as well have my wife profit from it, not like I'm coming back.

Sure, it makes financial sense and there's no reason not to do it.

Just an odd product though. They sell "family protection and security", but they're really selling "comfort yourself with the untimely loss of your loved one with a mountain retreat!". But you just can't really SAY the latter.

[AFShadow]

Originally Posted by I. J. Reilly

Marmel: so what would a ballpark figure be for a 1.0m policy on a 36 year old non-smoker? Or is there a lot more to it than that?

About 800-900 if you are perfect health.

[DaddyTorgo]

per year?

zoinks

[Passacaglia]

Originally Posted by molson

But in the very likely event that your wife remaries - multiple luxury vacation home on Lathum's ashes!!! And nobody has to work!!
I'm not disagreeing with you at all or anyone here, you gotta do it. But as with multi-million dollar wrongful death lawsuits - I always found it way creepy to cash in on a loved one's death to create a lifestyle far in excess of what someone had before the death.

I definitely agree, but I think the problem in the scenarios you're giving is that the beneficiaries are not being as fiscally responsible as the person who actually bought the life insurance. Sure, maybe because of the life insurance they don't *need* to -- hopefully they bought an annuity that will provide for them as long as needed, but if there's money left over, they should still do the right thing and put it away for future generations.

[Passacaglia]

Originally Posted by AFShadow

About 800-900 if you are perfect health.

Originally Posted by DaddyTorgo

per year?

zoinks

That's probably whole life, right? Think about term life. Do you really need a policy that pays out after you're retired?

[CU Tiger]

I have never seen whole life that was financially viable.

The point of large amounts is to have the interest replace your income without touching the pinciple. If I die tomorrow my life insurance needs to provide for my wife for potentially 60 years...yeah I think I need a few dollars.

In my reent experience, weight plays a larger role than even tobacco use.

[RainMaker]

Does anyone know how much life insurance fluctuates by weight? I'm 30 and while not married, do have a Mother who is disabled that I'd like to make sure is taken care of if I did pass. But I still have about 20 some odd pounds I'd like to drop and wondering if there would be a big difference in price if I waited.

[Passacaglia]

Originally Posted by RainMaker

Does anyone know how much life insurance fluctuates by weight? I'm 30 and while not married, do have a Mother who is disabled that I'd like to make sure is taken care of if I did pass. But I still have about 20 some odd pounds I'd like to drop and wondering if there would be a big difference in price if I waited.

You can google to find calculators that you can play around with, which probably make good estimates. From the one I looked at, it doesn't seem like much -- certainly not as much as the difference between whole and even 30-year term.

[RomaGoth]

Odd that this topic came up, since we are looking at adding to or changing our life insurance. Currently with Prudential, but we have a friend with NY Life who is quoting us decent prices. Also offered me a job...

[CraigSca]

Hey guys - just looking for some advice regarding life insurance. Currently have a small policy through work, but hey, you never know, so I'd like to have a policy of my own.

Age 45 with two kids (young teens) but looking to adopt from China this year, so that will reset the clock financially. Been talking to insurers about a 750k policy for 20 years and a 250k policy for 30. The thinking is that after 20 years the kids will generally be out of the house and that my 60+ year old wife will not need as much money to get by (house will almost be paid off, no kids to feed, etc.).

Does this make sense to others? The difference between the above and a flat $1m for 30 years is substantial.

[Galaril]

Originally Posted by CraigSca

Hey guys - just looking for some advice regarding life insurance. Currently have a small policy through work, but hey, you never know, so I'd like to have a policy of my own.

Age 45 with two kids (young teens) but looking to adopt from China this year, so that will reset the clock financially. Been talking to insurers about a 750k policy for 20 years and a 250k policy for 30. The thinking is that after 20 years the kids will generally be out of the house and that my 60+ year old wife will not need as much money to get by (house will almost be paid off, no kids to feed, etc.).

Does this make sense to others? The difference between the above and a flat $1m for 30 years is substantial.

Craig I did the exact same thing a 10 year for 1 mill and 500 k for 20. I always do another 500 k through work to even it out.