Things to Consider When Buying Term Life Insurance

Things to Consider When Buying Term Life Insurance

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[hunteryoung]

Are the term life policies offered by the AICPA any good for CPAs and their spouses? The best I can tell, they are 1 year polices that renew every year and the premium goes up slightly every year. That’s a little different than the 10 or 20 year policies that you guys talk about.

[ninajefferson]

10, 20, 30 years is
Term Insurance, it's
for a certain period,
you pay a premium
for the coverage.

[edhcb]

My sister said to me recently “Not having a least a million dollars of life insurance at your age is irresponsible”. To which I responded “Not having at least a million dollars of retirement savings at your age is irresponsible”. Her immediate reply was that nobody has $1M at 50 years old, that’s what insurance is for”. 🙄

[jeremylange]

Would the 10X income + mortgage rule of thumb be good advice for a young couple (age 30), with kids in future plans, who have built up a decent nest egg already? My wife and I are just starting to shop for life insurance, and that rule of thumb definitely feels like overkill but I have read that advice over and over.

[nickdoyle-achievefinancial]

Good advice. I've avoided life insurance thus far and am just a few years away from FI. I have been debating it to make my wife FI, if I die. However, my employer's benefits are on the order of 15x salary, so probably unnecessary.

[Jack]

I have found that going with an insurance company directly is far less expensive than the employer provided supplemental life insurance. I saw 30% less expensive by going directly with an insurance company. You need to answer health questions and submit to a blood test. But if you are decently healthy, then that will be a less expensive option. Also, if you leave your job, you still have YOUR insurance, not through your employer. I take any free insurance from my employer, of course, but I wanted to share that directly insuring will probably be cheaper than employer sponsored insurance.

[markmanning]

How do I protect myself from potential loopholes that insurers would use to decline payment to my loved ones?

[ak]

Should also really consider the insurance with your employer too. My wife has a 2x included in her job and up to 7x for an additional 10 dollars a check or 260 a year for 550k. It's heavily subsidized.

[cloudtang]

Luckily my company provides a term life insurance that can go with me even I quit my job

[victorvalentinejr]

I have term life can i take cash value

[DemetriPanici]

Luckily I have a life insurance plan at work

[TheAlex]

As a Canadian…I love hearing Americans pronounce the word insurance…emphasis on the “IN”surance!

[marcenelj]

Dave Ramsey hates whole life insurance

[jon]

Term life insurance is a joke that leaves the insurers the winner most of the time. I was taught from an insurance broker that if I started buying insurance when I was 20 years old then my monthly premiums would be cheaper than buying the same plan at 40 years old. The important detail he left out was what happens when I outlived the term. The maximum term was for 30 years and if I bought in when I was 20 years old I would have to die by the time I was 50 years old for my beneficiaries to get the pay out, if I live beyond 50 years old there is no payout and all the premiums I paid during my early years was a donation to a for profit insurance company who will not reimburse you a penny of what you contributed. Fortunately none of the fear tactics of insurance sales people worked on me because I was single and gay not planning to have any kids even if I ended up married or in a long term relationship so I was never worried about leaving a legacy behind. You are better off investing for your retirement than life insurance.

[kennethwers]

It's death insurance!! It will not extend your life. The first question is does someone depends on your income? Will that person be okay without that income?