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Life Insurance Question
Posted on 4/14/15 at 11:15 pm
Posted on 4/14/15 at 11:15 pm
First off, noob doesn't even begin to describe how little I know about investing/protecting myself, so be gentle.
I'm in the market for disability insurance. I've come to quickly find out that I can't get a quote on disability without having life insurance peddled to me. When I graduated med school and we bought our first house, I took out a 10 year term policy to cover the house for the wife if anything were to happen to me. Now I have an agent with Northwestern Mutual pitching a Term 80+ that she is touting can be convertible to what I'm imagining to be a whole life and will be a better investment/savings option for the future. When I try to research a whole life/770 plan, I either find arguments saying it's the greatest thing out there or it's the devil. What says the MT board?
I'm in the market for disability insurance. I've come to quickly find out that I can't get a quote on disability without having life insurance peddled to me. When I graduated med school and we bought our first house, I took out a 10 year term policy to cover the house for the wife if anything were to happen to me. Now I have an agent with Northwestern Mutual pitching a Term 80+ that she is touting can be convertible to what I'm imagining to be a whole life and will be a better investment/savings option for the future. When I try to research a whole life/770 plan, I either find arguments saying it's the greatest thing out there or it's the devil. What says the MT board?
8
Posted on 4/15/15 at 12:10 am to MDTiger 13
Keep your insurance and your investments separate, imo. Insure yourself with an inexpensive term policy and use the difference in premium to open a brokerage account. Northwestern Mutual is notorious for putting everyone and their brother in whole life policies. I'd stay away from them.
This post was edited on 4/15/15 at 12:13 am
Posted on 4/15/15 at 7:56 am to MDTiger 13
Don't come here for answers to your life insurance questions.
Posted on 4/15/15 at 11:41 am to MDTiger 13
Term Life only! You don't go to Hooters to buy jewelry, Don't go to an insurance company for investments. 
Posted on 4/15/15 at 12:23 pm to MDTiger 13
well... Northwestern Mutual has never NOT paid a dividend. I have 3 policies with them. 1 is term, the others are variations of whole life.
one thing she is likely saying, as I agree, is that you are guaranteed coverage regardless of future changes.
one thing she is likely saying, as I agree, is that you are guaranteed coverage regardless of future changes.
Posted on 4/15/15 at 4:08 pm to MDTiger 13
There are some very good disability policies without life insurance riders from very reputable insurance companies. Without knowing your entire financial situation that is the only insight that I can provide.
Posted on 4/15/15 at 10:10 pm to ArmchairQB
I don't know why the northwestern mutual person said you have to get disability w/life insurance-( not trying to advertise), but I'm an independent advisor and disability can be sold separately. It just can.
People have different opinions on life insurance. The primary reason you get it is for a true death benefit need. Calculate your debt, kids education (if you want to factor those future costs in there) and replacing your future income if you/Spouse dies prematurely. That is a good basic generic formula to use.
I hope that helps.
People have different opinions on life insurance. The primary reason you get it is for a true death benefit need. Calculate your debt, kids education (if you want to factor those future costs in there) and replacing your future income if you/Spouse dies prematurely. That is a good basic generic formula to use.
I hope that helps.
Posted on 4/15/15 at 10:13 pm to player711
I do agree that this type of account (770)can be very beneficial. That is all I will say. Do research on it. YouTube videos and objective research are good or getting with a tenured advisor who you trust...just my thoughts...
Posted on 4/20/15 at 10:03 am to player711
So my new employer offers 2x annual salary for life insurance free of charge.
Then I can buy up to 5x annual salary for about $0.08 per $1,000.
Should I purchase additional life insurance through the company, or go 3rd party and term?
Then I can buy up to 5x annual salary for about $0.08 per $1,000.
Should I purchase additional life insurance through the company, or go 3rd party and term?
Posted on 4/20/15 at 10:37 am to TigerBait1127
FYI if your employer pays for your group life insurance and the coverage is more than $50k, then that portion is taxable income.
This post was edited on 4/20/15 at 10:38 am
Posted on 4/20/15 at 11:01 am to Shepherd88
quote:
FYI if your employer pays for your group life insurance and the coverage is more than $50k, then that portion is taxable income.
yea, I know that. Just wondering if I should add more or go with someone else. It is $8/month per $100k. They will also cover my wife
Posted on 4/20/15 at 2:51 pm to MDTiger 13
As others have stated, life and disability aren't necessarily a package deal. Your agent is just trying to fleece you for a few more bucks.
Call somebody less predatory and request info solely on DI. Northwestern is solid, but there are a few other major players in the DI space.
Call somebody less predatory and request info solely on DI. Northwestern is solid, but there are a few other major players in the DI space.
Posted on 4/20/15 at 8:55 pm to MDTiger 13
DI and life can definitely be purchased seperately.
I consider buying life insurance for a few different reasons; to cover debt, to provide for my family should I die prematurely, to cover burial costs, and to help pay for my children's education. Some people add yhe want to leave a legacy here.
Why buy now? You are as young as you'll ever be and as healthy as you'll ever be. The day your health changes is the day after the last day you can buy life insurance. Once your health changes, you'll never be eligible again.
My recommendation is to buy a 30 year term from a company that allows you to convert to WL at any time with no additional underwriting.
I consider buying life insurance for a few different reasons; to cover debt, to provide for my family should I die prematurely, to cover burial costs, and to help pay for my children's education. Some people add yhe want to leave a legacy here.
Why buy now? You are as young as you'll ever be and as healthy as you'll ever be. The day your health changes is the day after the last day you can buy life insurance. Once your health changes, you'll never be eligible again.
My recommendation is to buy a 30 year term from a company that allows you to convert to WL at any time with no additional underwriting.
Posted on 4/21/15 at 1:45 pm to Slickback
quote:
My recommendation is to buy a 30 year term from a company that allows you to convert to WL at any time with no additional underwriting.
Is this common? Doesn't seem like insurance companies would offer this for obvious reasons.
This post was edited on 4/21/15 at 1:46 pm
Posted on 4/21/15 at 2:25 pm to silstang23
Yes it's common. Most companies will allow a conversion within the first 10 years.
You are guaranteed your health rating insurability but your rates will change to reflect your current age.
You are guaranteed your health rating insurability but your rates will change to reflect your current age.
Posted on 4/22/15 at 9:23 am to MDTiger 13
There seems to be some miscommunication in this thread. I read your OP to say that you want DI and your agent is also trying to sell you life. It seems others are reading it to mean your agent told you that you can't buy DI without having life.
The former is going to be the case wherever you go. Chances are you could benefit from some life as well (most don't have enough) and your agent, in addition to being an advisor, is a salesperson. Of course they are going to bring life ins. options to your attention. If they are telling you you can't buy DI without life, then talk to someone else. If you have no interest in life at this time, tell them very directly that you are only interested in DI at this time.
Whether term or whole life (or some hybrid of which there are many) is better for you is totally dependent on your circumstances and goals. Anyone telling you any different is over-generalizing.
Full disclosure: I interned with NYM and have several policies with them (multiple whole life, multiple term, and supplemental DI). I have found them to be a wonderful company and I have an agent that I trust implicitly to give me good advice. I think having the right agent is every bit as important as selecting a company with a strong rating and balance sheet that you know will be around to pay your claims.
The former is going to be the case wherever you go. Chances are you could benefit from some life as well (most don't have enough) and your agent, in addition to being an advisor, is a salesperson. Of course they are going to bring life ins. options to your attention. If they are telling you you can't buy DI without life, then talk to someone else. If you have no interest in life at this time, tell them very directly that you are only interested in DI at this time.
Whether term or whole life (or some hybrid of which there are many) is better for you is totally dependent on your circumstances and goals. Anyone telling you any different is over-generalizing.
Full disclosure: I interned with NYM and have several policies with them (multiple whole life, multiple term, and supplemental DI). I have found them to be a wonderful company and I have an agent that I trust implicitly to give me good advice. I think having the right agent is every bit as important as selecting a company with a strong rating and balance sheet that you know will be around to pay your claims.
Posted on 4/22/15 at 9:10 pm to Putty
I don't pretend to know much about insurance. Can someone expound on why several financial advisors and insurance agents, that I spoke with, completely hate while life policies?
Posted on 4/23/15 at 8:08 am to SomethingLikeA
quote:
I don't pretend to know much about insurance. Can someone expound on why several financial advisors and insurance agents, that I spoke with, completely hate while life policies?
They are incomplete in their knowledge, they only market products that their income allegiance offers, and they blindly follow the disinformation of others who claim wisdom.
Truth is, the only given in life is death, so why market product that doesn't benefit the event? We purchase auto, house, disability, medical, accident, travel, etc. and hope to never use the coverage.
(this is the only gem I leave here) 
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