Life Insurance
Moderator: TheMachine
Life Insurance
I'm looking into getting a 20 year term life insurance and I was wondering. The premium is guaranteed for the first 10 years and after that it can be increased if the company's expectations change once each year (with regulatory approval). I wanted to know if this is pretty much normal?
When the world is mine, your death shall be quick and painless.
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Pherr the Dorf
- Way too much time!
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How old are you?? Life insurance is something you want to get into the longest fixed term you possibly can. Try to get it to roll past age 64 if you can. A 20 year policy without a fixed term unless you are over 50 is pretty much pissing your money down the drain. Also what you want to have is a policy equal to 10 years of your income (tho I kinda tripled that for my kids sake)
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Jefferson
Jefferson
my term life insurance does not have a clause that can change at 10 years. i would not agree to that personally.
only get life insurance if you have children, or other people who depend on your income for food/housing.
you want term life insurance, and you might as well go for as long as is necessary.
For instance if you have two five year old children you may wish to make sure you have enough insurance to cover the period of time that they get through college and have started out etc. From there, it is really up to you if you think your spouse needs you to be covered. The money spent may be better off invested in an IRA which can be transferred to the spouse anyway with a very limited tax liability.
both my spouse and I work, so we have policies for each of us.
I would only look at term. Annuities, whole, etc...those are high commission items that are shitty returns on your investment unless you are really pretty wealthy and need extra tax shelters.
but get lots of quotes. http://www.insure.com has lots of quotes for you.
http://www.ambest.com rates insurers as well. A++ is where you want your provider to be if at all possible. This means you can reasonably expect them to be financially solvent in 20 years should there be a need to write your wife a check for $500,000.
only get life insurance if you have children, or other people who depend on your income for food/housing.
you want term life insurance, and you might as well go for as long as is necessary.
For instance if you have two five year old children you may wish to make sure you have enough insurance to cover the period of time that they get through college and have started out etc. From there, it is really up to you if you think your spouse needs you to be covered. The money spent may be better off invested in an IRA which can be transferred to the spouse anyway with a very limited tax liability.
both my spouse and I work, so we have policies for each of us.
I would only look at term. Annuities, whole, etc...those are high commission items that are shitty returns on your investment unless you are really pretty wealthy and need extra tax shelters.
but get lots of quotes. http://www.insure.com has lots of quotes for you.
http://www.ambest.com rates insurers as well. A++ is where you want your provider to be if at all possible. This means you can reasonably expect them to be financially solvent in 20 years should there be a need to write your wife a check for $500,000.
Actually, life insurance should not be considered an investment. There are far better (riskier) means for investment. Besides, selling life insurance as an investment is illegal.
I'm married and have a child on the way. I'm pretty much the sole means for income as my wife will be staying home to take care of our new son (my choice). Anyways I make more than enough, no real need for her to work. I rather her finish school. Anyways, I basically calculated an amount that would pay for the house, pay for my wife's graduate school, my new sons entire schooling and enough for a nanny while she goes to school. I get that for 33 bucks a month. Whole life runs several hundered a month. I can do a lot better with that money somewhere else, and most people can as well, but you'd have to actually move your ass. I'm very familiar with the different types of insurance and their pros and cons, I just found it odd that it would change after 10 years, I know whole life increases, but I didn't think term would also.
I'm married and have a child on the way. I'm pretty much the sole means for income as my wife will be staying home to take care of our new son (my choice). Anyways I make more than enough, no real need for her to work. I rather her finish school. Anyways, I basically calculated an amount that would pay for the house, pay for my wife's graduate school, my new sons entire schooling and enough for a nanny while she goes to school. I get that for 33 bucks a month. Whole life runs several hundered a month. I can do a lot better with that money somewhere else, and most people can as well, but you'd have to actually move your ass. I'm very familiar with the different types of insurance and their pros and cons, I just found it odd that it would change after 10 years, I know whole life increases, but I didn't think term would also.
When the world is mine, your death shall be quick and painless.