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Where did you buy your term life policy?

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  • #16
    Went with a laddered $3mil policy with Banner (1mil for 30 years, 1 mil for 20 years, 1 mil for 10 years). I'm a 30 y/o M with no major health problems. Premium ~120/mos. Used Lawrence Keller, highly recommended.

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    • #17
      Keep in mind that 2 of the best life insurance companies, Northwest Mutual and TIAA-CREF, don't give quotes (AFAIK) thru term4sale or any other brokers.

      Personally, I would not go with any other company other than one of those, or Mass Mutual, Guardian, or New York Life.  Maybe one other that I'm forgetting.  These 5 companies have the highest or second-highest ratings from S&P, AM Best, Fitch, and/or Moody's.  You want a company with an excellent rating, because you want to know that they'll be around and able to pay the claim when you need them to.  Just MHO.

      Jim

       

       

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      • #18
        Jim, what about a bunch of other companies that may be less well known that still have an A rating and have been around for decades?  Would you still avoid them and pick the ones you mentioned?

         

        How does one get a quote from Northwestern Mutual and TIAA if they don't sell through brokers?  I thought they ALL had to sell through a broker, no?

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        • #19
          TIAA sells direct and Northwestern Mutual agents sell Northwestern Mutual. Northwestern Mutual does not allow non career agents to sell their policies.
          Lawrence B. Keller, CFP, CLU, ChFC, RHU, LUTCF
          www.physicianfinancialservices.com

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          • #20
            Larry beat me to answer your second question. Hi Larry.

            As to your first question, here is how I look at it: it is extremely difficult (I would go so far as to say, impossible) to predict what the insurance/financial world will look like 20-30 years from now. Who would have thought in 2000 that AIG would go bankrupt, or that Lehman Brothers and Bear Stearns would go belly-up? But it happened. A-rated* companies probably have the highest chance of being around and being able to pay your claim when you die. Guaranteed? Nope. Just a "best chance" model. But for my money, I would rather pay a higher premium for that "best chance" than pay a lower premium to a company that may not be around, or may not be able to pay the claim. when the time comes.

            That being said, a company which is lesser-known but still has an A-rating may still be ok, but, lesser-known generally means "less capitalized" and therefore, in my mind, "less claims-paying ability."

            There's a ton of info on this stuff out there, but be careful who you're getting advice from. Try poking around on the websites of the 4 rating companies listed in my first post above; that will be the closest thing to unbiased as you can find.

            For what it's worth, my own policy is with TIAA-CREF. My next choice would probably have been Mass Mutual, or Guardian. Guardian's premiums, though, are in general substantially higher than pretty much anyone else's, especially for term.

            Jim

            * I use the generic term "A-rated" to mean the highest strength rating from the insurance rating companies. In reality, they all have different rating scales and it's quite confusing ... Aaa, Aa+, etc.

            ------------------

            By the way, I'm a doctor, not a financial wiz.  If I sound like I know what I'm talking about, thanks, but I reserve the right to be FOS.

            If I've said anything that's facutally incorrect, I'd invite Larry or anyone else in-the-know to correct me.

            Jim

            Edit: hmm something is amiss.  I wrote a lengthy reply but it doesn't show up, whereas this shorter one did.  Maybe something to do with moderation? *shrug*

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            • #21
              Yeah some replies don't seem to be going through, I've had the same issue.

               

              Larry, I don't know if you can "advise" on that, but would you recommend going through one of those companies as well, or you feel it doesn't matter as long as the company is overall reputable and has a good rating?  Maybe I am totally wrong on this, but I would be much more careful about getting disability stuff from a very reputable company, but for life insurance is good enough good enough?  (My current 1 mil policy is with William Penn, looking to get another likely 2 mil term 20 year policy).  Thanks!

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              • #22
                I'm having the same issue in terms of replies going through.

                Like everything else, you really have to weigh the cost vs benefit in terms of what you purchase. Unless the cost difference is small or you plan on converting your term life insurance policy to Whole Life, I don't think you need to limits your choices for term insurance to those carriers.

                William Penn (Banner Life is the same outside New York State) is best known for being a provider of low cost term insurance and I use them routinely.
                Lawrence B. Keller, CFP, CLU, ChFC, RHU, LUTCF
                www.physicianfinancialservices.com

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                • #23
                  Another vote for Lawrence Keller.  He reviewed my current disability/term life policies (purchased through another broker) and was very honest about them.  He said my disability ins was excellent and recommended stacking another on top of the current (Mass Mutual) as it is maxed out.  Have not gotten around to that yet but I probably will soon.

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                  • #24
                    Automatic, we have a fairly hefty mortgage, a kid and another on the way.  In my 30's so not a ton of savings, wife not a high earner.  So if I died today, I would like for the mortgage to be paid off and for them to be able to not just live off the remaining amount, but invest it and live on earnings off that sum, with wife working part-time.  A mil would definitely pay off all debt and some, but I figure having another 2 mil would give them another 150k a year or so (roughly 4% of 2 mil) to live on.  I mean why not, it's so cheap.  And they do say that one should have about 10x of yearly income in term...

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                    • #25
                      Automatic, 1 mil would pay off my debt, but it would leave little for my family to live off.  If I have an extra 2 mil that could be invested and would give them say around 150k a year to live off, without touching that principle.  I think generally people recommend to have a term policy for 10x your annual income, and that sounds wise to me.  My wife is not a high earner and I am in my 30's, so not a huge net worth.  And why not, it is so cheap, seems like a no brainer to me.  I hope that another 2 mil for 20 years will do, and by then I should have a paid off house and significant savings (hopefully if I stay healthy).

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                      • #26
                        Will try to retype what I said:  so basically a mil would pay off my debts, but I want to have another 2 mil for family to then invest and live off the roughly 4% a year off that.  I am in my 30's and don't have a ton of savings yet and a sizable mortgage.  Want to get a 2 mil 20 year policy, which is rather cheap so seems like a no brainer to me.

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                        • #27
                          A mil is not enough for my family to live off, after mortgage is paid off.  Why not get another 2 mil, it's cheap enough.

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                          • #28
                            I am in my 30's, so not a ton of savings yet.  A 20 year 2 mil policy is cheap enough.  And by then in 20 years house should be paid off and should accumulate enough savings to not need more policy.  In retrospect I should have bought more when I got the 1 mil policy 4 years ago.

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                            • #29
                              I understand what you are saying about upping the amount, Vlad.  I want my family to be able to live comfortably and kids to go through schooling if I weren't there.

                              I also understand what you are saying about some comments disappearing...I have had it happen already too.  (Don't know what happened)

                              Anyways, we upped the amount several million and here is the process we used (straight from WCI website):

                              term4sale -----> picked the companies listed who deal in my area -----> called those people for quotes ------> took medical physical for " preferred" standing (or not) ----> made final choice

                              We use MetLife.

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                              • #30
                                I understand what you are saying about upping the amount, Vlad.  I want my family to be able to live comfortably and kids to go through schooling if I weren't there.

                                I also understand what you are saying about some comments disappearing...I have had it happen already too.  (Don't know what happened)

                                Anyways, we upped the amount several million and here is the process we used (straight from WCI website):

                                term4sale -----> picked the companies listed who deal in my area -----> called those people for quotes ------> took medical physical for " preferred" standing (or not) ----> made final choice

                                We use MetLife.

                                Comment

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