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Life insurance

Shooter

Shooter

Living life on the heavies.
Joined
Mar 15, 2006
Messages
3,554
Location
Louisville, KY
Anybody have any ideas.

All of a sudden my wife decides she wants life insurance. I know nothing about it. I have some through my company but other than that I have no idea. I know there are two main types.

Term

The other where you pay and can cash out after so many years if you decide to.

I am leaning more toward term, way cheaper and I already set aside loads of money for retirement in 401k and after tax accounts, so I don't see the need for another type of investment/life insurance.

She is saying she wants it for herself, because everything is in my name and I handle all the money. I can understand that. I would much rather her invest other places and get term, but I don't know enough about life insurance to talk intelligently about it. I hate going to a meeting with someone and not knowing more about what they are selling or providing than them. I always study up to make sure I am not getting screwed.

I am sure she wants me to meet with someone and I will be sitting there like a deer in the head lights.

I have spent most of the day bouncing around the internet trying to self educate. However I do value your opinions.

Thanks
Shane
 
Like Doc said, go with term. take what you save in premiums and invest it yourself.....
 
I’ve got the cash out type, my folks took it out for me when I was born and I just got control of it when I turned 21, I’ll make a nice down payment on a house. Mine is fairly cheap though, $36 every 6 months.
 
uh... oh... did ya piss er off? LOL Well man it was nice knowing ya, you seemed like a nice guy to bad she is trading you up for the hot latin pool boy- let me know when the funeral is ...
XOXO ( It's in jest, sheeesh! )
 
Best bet is if she can buy it from her employer that way the rates are better. I would shy away from whole life if you don't have kids, but that is my opinion. Consumers Union has great advice on insurance options and the such. It is a good idea to have insurance for you and your family as well as a current will.
 
tone-ny said:
Best bet is if she can buy it from her employer that way the rates are better. I would shy away from whole life if you don't have kids, but that is my opinion. Consumers Union has great advice on insurance options and the such. It is a good idea to have insurance for you and your family as well as a current will.
Click to expand...

That's what my opinion is too
 
From consumer reports(look at the sites they recommend for quotes - after you find out what you need/want):

good term-life terms

Rates on term-life insurance have dropped sharply in recent years, partly because people now live longer. A healthy 40-year-old paid $1,995 for a $500,000 policy in 1994 but would pay only $355 today, says Byron Udell, chief executive of Internet life-insurance broker AccuQuote.

What to do. Get quotes from online brokers that offer policies from multiple insurers. AccuQuote, for example, covers 150. Also try Insure.com and FindMyInsurance.com. Buy only from carriers with top strength ratings from at least two of these companies: A.M. Best, Fitch, Moody’s, Standard & Poor’s, and Weiss.
 
IMHO term is the best option. That being said, shop around. There is a big difference in price. It would not be a bad idea to shop it on the internet - As long as the company is viable, go for the lost cost provider. Again, MHO.
 
Whole life is a lousy investment. I also get "free" life insurance on myself from work. Until recently, the street couldn't touch the rates for insurance I could buy through my employer. When selecting my optional bennies in November of last year, my wife found that the additional life insurance rates were horrible as compared to State Farm.

I have always carried small term policies on my children until they were old enough to take care of themselves.
 
Alot of the answers really depends on your situation, debt, kids(?) and how long you and your wife think you'll work until retirement. Although it can be painful, it's really not a bad idea to sit down with a few financial planners to discuss life insurance. Chances are they will come to your house (ours did) so it's really no loss on your part to do it. If you don't like them then you don't have to buy.

Also, be upfront with your insurance agent about cigar smoking. Well, maybe don't spill all the beans at once, but see what tolerances different companies have for cigar smokers before you flat out tell them how many you smoke per day, month or year. We both got term through Northwestern Mutual, and they allow 12 cigars/year before they'll rate you a smoker. However you also have to piss clean on your physical to qualify for this.

If anyone wants more details feel free to pm me about what we got.
 
Term is the way to go, IMO.

How much do you need? Enough that will pay off your debts if you were to die. Most people will not need as much later in life as they need when they are younger, because their debts typically get smaller as they age. I'm not talking credit card debt, but primarily mortgage debt. If you owe $200k for your house, plus $30k for all of your other debts, you'd want a $250k policy.

How long do you need it? If you owe 20 years on your home, and don't plan to move into another home, you'd want to look at a 20-year term policy.

The main reason for insurance (again, IMO) should be to pay off your debts should you die. That way, your family is protected. Insurance should not be used as an investment. It's a poor one. If you want an investment, take the money you will save getting a term policy versus a whole life and put it into stocks or a mutual fund.

Again, buy only as much as you need and buy it only for as long as you think you will need it. Let real investments take care of your long term financial security.

For all you young guys... you will get older. Plan for your future as early as possible. The best advice anyone can give you is to take advantage of your 401k plan if your employer offers one, especially if your employer matches your contribution.
 
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