- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Term Life Insurance question
Posted on 11/13/15 at 3:14 pm
Posted on 11/13/15 at 3:14 pm
Howdy all,
I am looking into getting term life insurance for myself. I just got married and we are thinking about starting a family. I have my renters and vehicle insurance through State Farm and will be getting my life insurance through them as well.
They have regular term insurance that will run my $50 a month for a 20 year term. They also offer a return of premium insurance. The coverage is the exact same, but cost $120 a month. Kicker is, at the end of the 20 year term, if still alive, I get every dollar back.
It is basically a interest free savings account. However, I cant decide if it is worth it or not, here's why. Without the return, I am paying $50 a month that I wont get back. So, that makes the return of premium plan not really interest free, but I dont know what to call it.
Additional information: I am 26 years old and fully expect to live to be 46 (end of 20 year term) and even if I did the return of premium and died during year 19, the payout would significantly outweigh what has been paid in (in either case).
I am leaving for NOLA in a few minutes, so I wont be able to check back for a few hours, but please give opinions on the two different methods.
I am looking into getting term life insurance for myself. I just got married and we are thinking about starting a family. I have my renters and vehicle insurance through State Farm and will be getting my life insurance through them as well.
They have regular term insurance that will run my $50 a month for a 20 year term. They also offer a return of premium insurance. The coverage is the exact same, but cost $120 a month. Kicker is, at the end of the 20 year term, if still alive, I get every dollar back.
It is basically a interest free savings account. However, I cant decide if it is worth it or not, here's why. Without the return, I am paying $50 a month that I wont get back. So, that makes the return of premium plan not really interest free, but I dont know what to call it.
Additional information: I am 26 years old and fully expect to live to be 46 (end of 20 year term) and even if I did the return of premium and died during year 19, the payout would significantly outweigh what has been paid in (in either case).
I am leaving for NOLA in a few minutes, so I wont be able to check back for a few hours, but please give opinions on the two different methods.
9
Posted on 11/13/15 at 3:18 pm to Ice Cream Sammich
You need to shop those costs. State Farm will not be the best deal by a long shot.
Posted on 11/13/15 at 3:37 pm to Ice Cream Sammich
Take that same $70 and invest it in an index fund and you'll come out ahead. 20 years at 5% (pretty modest) you'll end up with about $28k, about $117/mo. Same result but you have control over the investment and will likely earn a lot more.
Posted on 11/13/15 at 3:41 pm to txtiger21
quote:Was about to say this. It's nice to have instant access to the funds as well.
Take that same $70 and invest it in an index fund and you'll come out ahead. 20 years at 5% (pretty modest) you'll end up with about $28k, about $117/mo. Same result but you have control over the investment and will likely earn a lot more.
Posted on 11/13/15 at 3:54 pm to Shadowlink
$50 a month for 20 year term is wayyyyyy high unless you're getting a million dollar policy or some sh!t. In which case, WTF are you getting so much insurance?
I'm 36 years old and I'm not in their prime category for height and weight and I'm getting a 15 year term policy worth $400K for about $30/month...Genworth through Zander BTW.
I'm 36 years old and I'm not in their prime category for height and weight and I'm getting a 15 year term policy worth $400K for about $30/month...Genworth through Zander BTW.
Posted on 11/13/15 at 4:44 pm to Ice Cream Sammich
$50 a month for a 20 year term on a 26 year old(assuming you don't smoke) sounds like a ripoff. I'm 43 and I was just quoted $52 for a 10 year term with a $350,000 death benefit. I didn't even read the rest of your post, so I may have missed something. That price just made my jaw drop.
Shop around.
Shop around.
Posted on 11/13/15 at 4:51 pm to Ice Cream Sammich
no no no NO NO NO State Farms is not the way to go
CHECK ZANDERS insurance and get 20 year term life
CHECK ZANDERS insurance and get 20 year term life
Posted on 11/13/15 at 5:16 pm to Ice Cream Sammich
I'm 36, non smoker, and pay about $50 a month for an $850k 20 yr term with Northwestern Mutual. Have wife's life ins and disability insurance with them as well.
Posted on 11/13/15 at 5:29 pm to Sigma
Well, the point of this thread was not to debate State Farm or another company, but y'all changed my mind.
It was a 20 year term for 500k,non smoking, standard health is $50. I would be preferred health and it would drop to $40/month. Still, I will shop.
Also, y'all have convinced me that the return of premium is not in my best interest. I didn't figure it would be, he pushed it far too much.
Thanks for all the help, I have a function to attend. If anybody else has opinions, please leave them.
It was a 20 year term for 500k,non smoking, standard health is $50. I would be preferred health and it would drop to $40/month. Still, I will shop.
Also, y'all have convinced me that the return of premium is not in my best interest. I didn't figure it would be, he pushed it far too much.
Thanks for all the help, I have a function to attend. If anybody else has opinions, please leave them.
Posted on 11/13/15 at 9:04 pm to Ice Cream Sammich
quote:No you want.
if still alive, I get every dollar back.
Posted on 11/13/15 at 10:37 pm to Ice Cream Sammich
Contact Zander Ins, let them shop policies for you.
Posted on 11/16/15 at 8:10 am to Ice Cream Sammich
At your age, you should be getting a 20 year policy for under $20 per month. I wouldn't worry about all the other complicated policies. A simple inexpensive level term, and forget about it and live life.
Posted on 11/16/15 at 8:37 am to GFunk
quote:
a million dollar policy or some sh!t. In which case, WTF are you getting so much insurance?
I'm 30 years old and have $1,150,000 worth of insurance? WTF am I getting so much insurance for? To provide for my wife and children and to pay for my children's college educations.
Makes sense to plan.
FWIW: $36/month for the $1,000,000 policy
This post was edited on 11/16/15 at 8:38 am
Posted on 11/16/15 at 10:09 am to Ice Cream Sammich
State Farm has one of the more expensive 20 year term products on the market.
To answer your question, don't buy return of premium. I rarely sell ROP because it only makes sense in a few scenarios.
To answer your question, don't buy return of premium. I rarely sell ROP because it only makes sense in a few scenarios.
Posted on 11/16/15 at 2:52 pm to wasteland
Thanks all for the help. I will begin to shop around tomorrow. I will NOT sign up for any ROP. Thanks.
Posted on 11/16/15 at 3:13 pm to Ice Cream Sammich
I got a 20yr 500k policy when I was 28. I pay $23/mo.
Like others have said, use Zander to get an instant free quote. They provide you with several different company's rates. You can choose the rate you want and they'll contact you about a free medical exam pretty quickly thereafter. It's a breeze.
Like others have said, use Zander to get an instant free quote. They provide you with several different company's rates. You can choose the rate you want and they'll contact you about a free medical exam pretty quickly thereafter. It's a breeze.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News