life insurance

[no694terry]

any life insurance experts out here.

The wife had some rep stop by.. ya sounds fishy so far right.. but i think she was tricked into there thing offering free kid safety things. she's all about free, like a free addict. anyway the guy was actually and insurance salesman for AIL (American Income Life). Me being a 28 year old perfect specimen of health and fitness has never looked into life insurance. I know i have some through work but never cared beyond that. Anyway he does his thing and i let him put me down for coverage on the hole family plus some term life for myself and a good chunk of accidental on myself for less than my cell phone payment a month. i guess with all the options out there i just don't know if i should commit. i already made the mistake of buying the first thing i saw when i got the disco.

BBB gives them a A+ by the way, and whats all this you can borrow from it stuff.

 

[Tugela]

I'm no expert, but my wife and I bought life insurance when we bought our house a couple years ago. We didn't want the survivor to be burdened with paying off the house if one of us died, so our policy covers our mortgage and then some. I also have a policy as part of my benefits package at work. At first I thought it sounded like a lot, but it turns out that dying is expensive. Between those two policies I feel my wife will have financial security if I meet an untimely demise.

If you already have an insurance policy from a major company for your car, home/renters, etc. it's worth talking to your agent to get an explanation. I don't know if life insurance is something you get a "bundle" discount on like auto and homeowners, but at any rate I find it easier to talk to one person about all my policies. It's definitely a better deal to buy life insurance for someone like you than for an overweight middle-aged smoker, so think about doing it soon if it's in your budget. As for whether the policy you're currently considering, there's no harm in getting a second opinion from another agent.

 

[Devildog01]

Better check those brake lines.

 

[Big Papa]

I work in the insurance world, and I can tell you when they offer free shit, it only entices you sign up. If your auto & home is with a major carrier like Farmers, St Farm, or Allstate, ask your agent to quote you a whole or term policy.

You have to ask yourself how long your family will survive financially if you die tomorrow. I carry 2 whole life policies. 1 for $100K, and another for $500K.

I don't want my wife & daughter to struggle if I eat shit on the highway. I've got both setup in a trust, and the money will be disbursed the way I want it to. Portion for my daughter's college, and monthly payments to the wife.

I prefer whole over term. It's a better policy, with less exclusions and it's with you your entire life.

 

[Drillbit]

with less exclusions

I have 20 year level term, other than me eating my gun what's excluded?

 

[no694terry]

I got the term but its only 25k because of what i have in my 401k. I have 100k accidental until im 70 plus my 25k from work. maybe i should wait until i move and transfer my vehicles and house to a major insurer

 

[Big Papa]

I have 20 year level term, other than me eating my gun what's excluded?

As you pointed out, suicide, but most won't cover aviation or dangerous activity. Dangerous activity like skydiving, any type of auto racing and some consider mountain climbing an exclusion.

I had an uncle that was mountain biking in Palo Duro Canyon, and flipped his bike which caused him to be killed instantly from head injury. Of course he was wearing a helmet, but his family ended up having to hire an attorney because his term life policy wouldn't pay benefits.

They declined the claim stating his mountain biking was a dangerous activity.

Just read your policy and it's exclusions so you know what your paying for.

 

[rcshauger]

Yeah, you need to be specific if you are an "adventure sports" person. I think most term life policies will not payout on any shooting sports accidents, rock climbing, dirt bike riding, off-road vehicle (including rover driving) accidents.

Talk to your insurance agent for auto and home and they should be able to tailor one for you. I have enough to pay off the house and outstanding debts. After that my wife is on her own...

You can borrow from whole life policies, but you are better off putting that money into your 401K and taking a term life for cheaper. I think of whole life as a savings account, you do not get much from them unless something bad happens and over 20 years the money you would put into a whole life policy could add up significantly in some tax-sheltered deferral.

 

[Big Papa]

Very true, plus while a whole life policy builds cash value, it can pay for itself when you decide not to pay it.

 

[no694terry]

Very true, plus while a whole life policy builds cash value, it can pay for itself when you decide not to pay it.

thats another thing, say i lose my job and cant pay this policy, how much of that goes down the shitter like all the money wasted on auto insurance. Maybe a term is better for me and put the rest in my 401k. Two things i suck at, politics and money management. and typing

 

[brianhoberg]

My wife, two children, and myself have a policy each. Basically, for the kids it's just to cover anything pertaining to a funeral if it unfortunately ever occurred. For my wife and I, if something were to happen to one of us, it is enough to cover all bills, mortgage, and establish a few years income (all after tax) to in essence provide stabilization, etc. If something happened to the both of us, the money is directed within our wills to be placed in a trust and distributed per our wishes annually to assist our chosen care-giver with taking care of our children and ensuring they have all they need. Our kids already have college savings we have been working on so it would be for taking care of their well being and lives. I will not disclose amounts, but just be sure to look at current legislation and look at how much your spouse will be taxed on that life insurance before collecting it when you are considering your term limits.
-Brian

 

[no694terry]

sales guy said the payouts were non-taxable. found that a little hard to believe

 

[Big Papa]

thats another thing, say i lose my job and cant pay this policy, how much of that goes down the shitter like all the money wasted on auto insurance. Maybe a term is better for me and put the rest in my 401k. Two things i suck at, politics and money management. and typing

No, actually a portion of the monthly premium you paid goes into what I call a cash bucket. Let's say you become unemployed after a few years of paying this policy, that cash build up pays that monthly premium when you can't.

You don't lose coverage value.

If you have term, and lose your job, then your term policy just cancels due to non payment of premium. There is nothing to back it up.

 

[jhk07]

Insurance is a racket. Buy term insurance if you need it. .

 

[toadermcgee]

any life insurance experts out here.

The wife had some rep stop by.. ya sounds fishy so far right.. but i think she was tricked into there thing offering free kid safety things. she's all about free, like a free addict. anyway the guy was actually and insurance salesman for AIL (American Income Life). Me being a 28 year old perfect specimen of health and fitness has never looked into life insurance. I know i have some through work but never cared beyond that. Anyway he does his thing and i let him put me down for coverage on the hole family plus some term life for myself and a good chunk of accidental on myself for less than my cell phone payment a month. i guess with all the options out there i just don't know if i should commit. i already made the mistake of buying the first thing i saw when i got the disco.

BBB gives them a A+ by the way, and whats all this you can borrow from it stuff.

Meet with a Northwestern Mutual Rep. one who has been in the business for 5+ years at least. They have the best out there when you read all of the fine print. Northwestern can only be sold by a Northwestern Rep. My dad bought some for me when I was young and I bought more when I was older. There is much more it can do than keep my family living the same life style with out me.

 

[Big Papa]

Insurance is a racket. Buy term insurance if you need it. .

Good idea. Stick with it.

 

[adriatic04]

If you have kids, figure out how much money they will need for college and figure out how many years from now until college graduation. Buy term policy to cover that equation.

Buy whole life for your family needs in case you pass away and your family needs income to continue supporting your house and current lifestyle.

You can get additional stuff going, universal, riders, etc. term is cheap for a reason. Insurance as a whole is a gamble, exactly that. The providers are betting on their odds which are highly calculated.

Whatever you do, don't use insurance as an investment vehicle. Use your 401, and other money management for retirement and investment.

 

[Tugela]