Need Life Insurance (1 Viewer)

[SuperAwesomeDude]

having a baby, need some life insurance. im a crazy mofo. live my life in the fast lane. work 6am-5pm. gym till 7pm. dinner. bed.

anyways, what can i expect? any tips? dont want to get screwed...

 

[TylerRoseFan]

find out how much your family needs if you didn't come home tonight. Pay off debt, pay for kids college, etc. Also, you need to figure out how much lost income you're family will need with you not there.

 

[Alex P Keaton]

1. Figure out how much you need (e.g., $100K, $200K, etc). Base it on stuff like how big your mortgage is,

how much money money your family needs if you aren't around, cost of childcare.

2. Only buy term-life insurance. Something like 20-year term. Don't let people talk you into anything w/ an investment option.

3. Go online. Great deals can be found, from reputable insurers. Go with an insurer that has good financial strength.

PM me if you want to ask questions.

 

[NewlyRetired]

Go here for a good start to estimate the amount you should get

http://moneycentral.msn.com/investor/calcs/n_life/main.asp

Then you need to determine what type of insurance you want. There are many different types available. The simplest to understand (and some would say the best solution for most people) is term insurance.

 

[Nigel Tufnel]

 

[Judge Smails]

Find the amount you need and then shop online for highly rated companies. Term only.

Good place to start

 

[shadyridr]

Does your company offer basic life? voluntary life? Whats the GI level (Guaranteed Issue = the amount you can be covered up to without submitting EOI (Evidence for Insurability). GI is usually around 3X your salary up to a max amt. That doesnt include your basic coverage which is usually a flat amount or 1X salary. Of course you would have 30 days to enroll after having y our child or you would have to wait until annual enrollment time. I can go on if youd like.

 

[FUBAR]

having a baby, need some life insurance. im a crazy mofo. live my life in the fast lane. work 6am-5pm. gym till 7pm. dinner. bed.

anyways, what can i expect? any tips? dont want to get screwed...

Unless the mother is awesome, say good-bye to that.

 

[Otis]

.

Been planning to do this as well.

 

[Alex P Keaton]

Find the amount you need and then shop online for highly rated companies. Term only.

Good place to start

 

[Alex P Keaton]

.Been planning to do this as well.

Big O - a high roller like you doesn't need insurance. Just fund it out of your 8-digit bankroll.

 

[Otis]

.Been planning to do this as well.

Big O - a high roller like you doesn't need insurance. Just fund it out of your 8-digit bankroll.

If only, friend.

 

[golfguy]

Term maybe the option/route to go.

I'd look at a 30 year term. normal numbers are about 10x your annual salary should be there. (this should cover the mortgage, childcare, lost income, have some inflation protection built in etc).

though I am also not of the guys who is totally against some form of permanent insurance. (if you want say 100k-200k to be permanent). a term/perm blend. look into an indexed UL. (not a big fan of whole life).

the people will be strong willed in here, will go on an on about term and invest the difference. the problem with that, is that most people don't invest the difference. they spend it.

 

[SuperAwesomeDude]

im 27 and make only 60k a year. that change anything? also, im extremely good looking.

 

[NewlyRetired]

im 27 and make only 60k a year. that change anything?

no. Just follow the directions in the posts above. Their are a ton of calculators to help you determine what you need and then simply find the best price for term insurance you can. At your age, assuming you are healthy, it will be extremely inexpensive.Also, do not forget your wife will need insurance as well. Even if she is a stay at home mom, should something happen to her, you will need money to replace her care of the baby.

 

[azgroover]

I have mine through Genworth Financial. Their parent company is (or was) GE, so I know they're good for the funds. $500,000 term policy costs me $46 per quarter. I got it when I was about your age.

 

[SuperAwesomeDude]

Thanks fellas.

 

[SuperAwesomeDude]

Also, I have about 7-8 months before the baby comes. Should I try to be super healthy guy for a few months before talking someone? Will that lower my costs? I'm pretty fit as it is. Run 10-15 mikes a week and lift weights

 

[NewlyRetired]

Also, I have about 7-8 months before the baby comes. Should I try to be super healthy guy for a few months before talking someone? Will that lower my costs? I'm pretty fit as it is. Run 10-15 mikes a week and lift weights

no that won't matter. All you are going to do is take a simple physical and answer questions.Two biggest questions outside of general health are "do you smoke" and "do you wear your seatbelts". Don't have a disease and answer those questions properly and it won't matter if you are a pro soccer player or weekend warrior in terms of your insurance premiums. At your age they are going to be super super super low.Extra things to consider are:1) How much does your wife need (have her take the same calculator tests)2) How long should you get the insurance for (think about how many kids you intend to have and when the last would be out of college is one barometer to use)

 

[Jobber]

As just about everyone else has already said...Term Life only. My wife and I also had whole life for a few years and it was a complete fiasco. I'm still pissed about having done that but we were young and stupid. Please, please do not fall into that trap. Even if someone says they know better!

 

[El Floppo]

as a 20-something, your rates should be cheap for a long while. this is a good time to get the insurance before- god forbid- your health takes an unexpected turn. or you get older. both suck.

re: whole life... I'm against it (I do invest what little money I have on the side), but I could imagine that if I had enough money coming in and was looking for an alternate investment vehicle, I'd seriously consider it. Key- for me- having enough money coming in, and having already invested in other options. But 60k a year, IMO means term life fo sho.

 

[JAA]

get it outside of work ... in case you lose your job

we did like 30yr 500k policy from AIG on both of us. I want to say less than $50 a month. Its not the kind you cash out on when over

 

[jb1020]

I'm a Dave Ramsey listener. I went with the Zander Ins. I just got 15 year term policy of $500k for like $18 a month. My wife got 20 year term of $250k for $11 a month.

Its a pretty easy process.

 

[Wrigley]

why don't you make her an honest woman first?

 

[Jaysus]

blackdot

 

[Nick Vermeil]

 

[SuperAwesomeDude]

why don't you make her an honest woman first?

why dont you shave my butt for me?

 

[gianmarco]

Those saying "term only", is it because he's looking at this strictly for insurance purposes or are there problems with some of the variable life's that invest?

I thought VUL's are good investment retirement vehicles as well.....

 

[shadyridr]

get it outside of work ... in case you lose your jobwe did like 30yr 500k policy from AIG on both of us. I want to say less than $50 a month. Its not the kind you cash out on when over

Majority of group life insurance you can covert or port over to an individual plan if you lose your job

 

[NewlyRetired]

Those saying "term only", is it because he's looking at this strictly for insurance purposes or are there problems with some of the variable life's that invest?

In general, it is not smart to mix insurance and investments. For a very small portion of the population whole life is ok, but for the vast vast majority, you do not want to mix the two.Get term to cover your insurance and invest your money in other vehicles.

 

[Wrigley]

why don't you make her an honest woman first?

why dont you shave my butt for me?

You've got a hairy butt?ewwwww

 

[Scarpaggio]

So what is the markup like for a 33 yr old Diabetic with high blood pressure. I have to look into life insurance as well and fear that it and not my diabetes will kill me.

 

[JAA]

get it outside of work ... in case you lose your jobwe did like 30yr 500k policy from AIG on both of us. I want to say less than $50 a month. Its not the kind you cash out on when over

Majority of group life insurance you can covert or port over to an individual plan if you lose your job

No insurance option from work for $500k

 

[Jayrod]

type...........pros.......................cons

Term - high death benefit for least .... worthless unless you die, 99% chance you never cash it out

UL - decent death benefit with some value .... costs more than term, pays less than whole life

VUL - lots of options ..... lots of ways to do the wrong thing

Whole - solid LT investment (think tortise & hare) .... very expenseive to cover your needs

Many people don't realize the LT benefits of a whole life policy. It is expensive and a LT commitment, but there isn't a safer investment out there. Term is the best for now, but like renting, the odds are very high that you are just giving away your money with nothing tangible in return. Many people realize a hybrid is a good option, which is where UL & VUL (& IVUL) come in to play. They are really like 2 policies in 1. One is an investment of the excess, the other is term coverage.

Also, on the amount you'll want to get in coverage, should be $500K minimum for the primary provider and about $200K minimum for the primary care giver. If you live in higher cost of living areas or are just accustomed to a more expensive lifestyle, move up accordingly. You will have to have blood work and pee test done usually for a 500K policy, but small thing.

And you should definitely research the company before you select them.

 

[shadyridr]

get it outside of work ... in case you lose your jobwe did like 30yr 500k policy from AIG on both of us. I want to say less than $50 a month. Its not the kind you cash out on when over

Majority of group life insurance you can covert or port over to an individual plan if you lose your job

No insurance option from work for $500k

Yeah like I said all group insurance plans have different maximums/benefit levels. Mine I can go up to 3X my salary without EOI. That on top of my basic coverage give me 4X my salary. Thats sufficient for me.

 

[cstu]

Find the amount you need and then shop online for highly rated companies. Term only.

Good place to start

I just did a check and a $1M 30 year term policy was $1,215 per year. Seems very reasonable.

 

[Jayrod]

get it outside of work ... in case you lose your jobwe did like 30yr 500k policy from AIG on both of us. I want to say less than $50 a month. Its not the kind you cash out on when over

Majority of group life insurance you can covert or port over to an individual plan if you lose your job

No insurance option from work for $500k

Yeah like I said all group insurance plans have different maximums/benefit levels. Mine I can go up to 3X my salary without EOI. That on top of my basic coverage give me 4X my salary. Thats sufficient for me.

Most companies won't pay for more than $50K in coverage as that is all the IRS allows to be deductible.

 

[cstu]

type...........pros.......................consTerm - high death benefit for least .... worthless unless you die, 99% chance you never cash it out

Good, I want it to be worthless. My main concern is that my daughter is taken care of and in 30 years she should be on her own taking care of herself.

 

[shadyridr]

get it outside of work ... in case you lose your jobwe did like 30yr 500k policy from AIG on both of us. I want to say less than $50 a month. Its not the kind you cash out on when over

Majority of group life insurance you can covert or port over to an individual plan if you lose your job

No insurance option from work for $500k

Yeah like I said all group insurance plans have different maximums/benefit levels. Mine I can go up to 3X my salary without EOI. That on top of my basic coverage give me 4X my salary. Thats sufficient for me.

Most companies won't pay for more than $50K in coverage as that is all the IRS allows to be deductible.

I never said otherwise

 

[Jayrod]

get it outside of work ... in case you lose your jobwe did like 30yr 500k policy from AIG on both of us. I want to say less than $50 a month. Its not the kind you cash out on when over

Majority of group life insurance you can covert or port over to an individual plan if you lose your job

No insurance option from work for $500k

Yeah like I said all group insurance plans have different maximums/benefit levels. Mine I can go up to 3X my salary without EOI. That on top of my basic coverage give me 4X my salary. Thats sufficient for me.

Most companies won't pay for more than $50K in coverage as that is all the IRS allows to be deductible.

I never said otherwise

I wasn't refuting anything, just adding commentary on company paid insurance.

 

[Jayrod]

type...........pros.......................consTerm - high death benefit for least .... worthless unless you die, 99% chance you never cash it out

Good, I want it to be worthless. My main concern is that my daughter is taken care of and in 30 years she should be on her own taking care of herself.

You want your money to be worthless? That's wierd.I have term, but would switch to either a hybrid or whole life if I had the .

 

[Buck Bradcanon]

why don't you make her an honest woman first?

why dont you shave my butt for me?

Oh, and you are going to have a girl. No question.

 

[FUBAR]

type...........pros.......................cons

Term - high death benefit for least .... worthless unless you die, 99% chance you never cash it out

Good, I want it to be worthless. My main concern is that my daughter is taken care of and in 30 years she should be on her own taking care of herself.

You want your money to be worthless? That's wierd.I have term, but would switch to either a hybrid or whole life if I had the .

Why not just invest the difference?

 

[El Floppo]

why don't you make her an honest woman first?

about the 1:00 mark.

 

[Jayrod]

type...........pros.......................cons

Term - high death benefit for least .... worthless unless you die, 99% chance you never cash it out

Good, I want it to be worthless. My main concern is that my daughter is taken care of and in 30 years she should be on her own taking care of herself.

You want your money to be worthless? That's wierd.I have term, but would switch to either a hybrid or whole life if I had the .

Why not just invest the difference?

Because:1) I need some form of life insurance anyway

2) Life insurance is one of, if not the most, tax favorable investment vehicle available

3) I don't trust the equity markets enough to put all of my eggs in that basket

 

[golfguy]

type...........pros.......................cons

Term - high death benefit for least .... worthless unless you die, 99% chance you never cash it out

Good, I want it to be worthless. My main concern is that my daughter is taken care of and in 30 years she should be on her own taking care of herself.

You want your money to be worthless? That's wierd.I have term, but would switch to either a hybrid or whole life if I had the .

Why not just invest the difference?

frankly, people just don't do this. overall the majority of people just spend the extra money. this comes up or that comes up. you don't have to buy a 1 million permanent policy, but a little fact amount say 100k-200k and throwing a little extra in is nice. again, i'm not a big whole life fan. however, the equity indexed universal life policies are pretty nice.

 

[B Maverick]

Insurance isnt supposed to be an investment vehicle its purely income replacement. Its so you can leave your family financially sound if you leave early.

Plus, at some point insurance costs go up. In a lot of cases If you have "permanent" or "whole life" you are either going to have your premiums go up, or it eats the so-called savings you have in it in order to pay for higher costs. Also, if you die, you get the death benefit only and a lot of times you do not pass along the "savings". Also, in a lot of these policies, it takes several years to have any savings in them despite you putting your money in. In an IRA or other true savings vehicle, your money is there right away.

I am not sure if this has changed in recent years but my first policy would have done all of this to me and it was never explained. I cancelled that quickly and am now firmly in the term ins only. And I invest the money I save with the lower premiums. Most places will allow you to set up an automatic transfer each month. No excuse not to save the difference.

When i am old, not supporting my kids (they may be supporting me!!!), have the house paid off, what do i need insurance for? I am retired living off my retirement funds. I dont have any income I need to replace and all my retirement accounts are passed on to my family members.

Whatever you decide is right for your family, make sure you read the policy and fully understand what you are getting into. Whats right for me isnt necessarily right for you. And I am not a licensed agent so take this for what its worth.

Also, and this may have changed too, but agents get paid more for whole life, universal life, etc then they do on term policies. Just something to think about.

 

[pmedina]

Thanks for the topic! Finally got the process started, had to for a while, but this thread got me motivated!

Got off the phone with aququote.com and they are quoting me a couple of policies I'll have some more specifics about later (term and amount) but the quote will be for Genworth UL policy. The lady on the phone stated it is the "same as term" but you can convert and it is priced equivalent. It seems based on this thread that this in not entirely true. Any insight? Shout I get a term quote without UL? Genworth seems solid, any negatives to this company?

Thanks!

 

[Tiger Fan]

I'm sure rates are different in each state...but I shopped around and ended up going with Met Life in case you don't have the time to shop around.

 

[Abraham]

I am 34 years old. Last year I bought a 20 year term policy for 800k that costs me $41/month. If my cholesterol comes down (I've been working on it) then I can get a $1MM policy for the same price.

There is also a new type of insurance that pays a "salary" to the benificiary as long as they are alive. So, you could buy a $100k/yr policy and if something happened to you, then your wife/kid would get paid every two weeks a paycheck. That would work out well if you got hit by a bus tomorrow, but isn't as appealing if you're 75 years old.