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Started By
Message
Life Insurance??
Posted on 3/15/11 at 3:41 pm
Posted on 3/15/11 at 3:41 pm
About to get life insurance for the first time and had a couple questions that I thought you guys could help me answer.
First off Im looking at $1M Term 80+ policy that is pretty straight forward. What is a good price (annual) for 1M coverage? 27 year old male, non-smoker, good health.
The 2nd is a $1M Adjust. CompLife policy(in addition to the Term policy)that I was thinking about front loading for the first 10 years. Is this a smart thing to do or should I pay the reduced premium for the life of the term. If I front load for the first 10 years the upside is this . .
a. I wont have any payments to make after 10 years.
b. The total cash outlay is about 40% if I front load as oppposed to paying till Im 75.
c. The cash surrender value is higher until I reach 75 yrs. (500K higher if paying premium)
If I pay a high premium for the life of the term . .
a. The total insurance excededs what the beneficiary would get paid if I front loaded.
b. Obviously the cash outlay is higher, so the surrender value and difference (credit) are higher.
??
First off Im looking at $1M Term 80+ policy that is pretty straight forward. What is a good price (annual) for 1M coverage? 27 year old male, non-smoker, good health.
The 2nd is a $1M Adjust. CompLife policy(in addition to the Term policy)that I was thinking about front loading for the first 10 years. Is this a smart thing to do or should I pay the reduced premium for the life of the term. If I front load for the first 10 years the upside is this . .
a. I wont have any payments to make after 10 years.
b. The total cash outlay is about 40% if I front load as oppposed to paying till Im 75.
c. The cash surrender value is higher until I reach 75 yrs. (500K higher if paying premium)
If I pay a high premium for the life of the term . .
a. The total insurance excededs what the beneficiary would get paid if I front loaded.
b. Obviously the cash outlay is higher, so the surrender value and difference (credit) are higher.
??
5
Posted on 3/15/11 at 7:25 pm to fastedLSU
An Annual Renewable Term until the age 95 is what I offer. A 30 year term will run you $1173 per year, $965 if super preferred. With what you said, I can't see you getting less than the preferred $1173. If you don't the highest amount would be $1868. The premiums are level through the 30 year term. They would, of course, go up once the term expired.
Permanent is more expensive, but you can comibne it with a term rider. For example, $300,000 permanent with $700,000 term would run you around $2900, $2700 if super preferred.
I can tell you, those prices are some of the cheapest out there.
Both sides have their pros and cons. I personally own only permanent, but term works well for younger people. Of course you know, permanent builds up a nice cash value. What it comes down to is this: Do you want to pay more and own life insurance, or do you want to pay less and rent it?
Permanent is more expensive, but you can comibne it with a term rider. For example, $300,000 permanent with $700,000 term would run you around $2900, $2700 if super preferred.
I can tell you, those prices are some of the cheapest out there.
Both sides have their pros and cons. I personally own only permanent, but term works well for younger people. Of course you know, permanent builds up a nice cash value. What it comes down to is this: Do you want to pay more and own life insurance, or do you want to pay less and rent it?
Posted on 3/15/11 at 8:55 pm to fastedLSU
Why do you need life insurance that late in life? If you intend it to be a lotto ticket for your beneficiaries, you will pay much more each month until then. Even if you are prepaying, this extra coverage is factored into the cost somewhere.
At 27 years old, you have plenty of time to plan financially and get 30 year term. Some people definitely have unusual circumstances, but it's just something to consider.
I don't think I would ever prepay a policy that far ahead of time. Any chance of this being a scam? Or maybe the LLC shield vanishes after 10 years - don't know, it just sounds suspicious.
At 27 years old, you have plenty of time to plan financially and get 30 year term. Some people definitely have unusual circumstances, but it's just something to consider.
I don't think I would ever prepay a policy that far ahead of time. Any chance of this being a scam? Or maybe the LLC shield vanishes after 10 years - don't know, it just sounds suspicious.
Posted on 3/15/11 at 9:06 pm to fastedLSU
quote:
If I front load for the first 10 years the upside is this . .
a. I wont have any payments to make after 10 years.
b. The total cash outlay is about 40% if I front load as oppposed to paying till Im 75.
FYI .. The quick IRR on that incremental cash flow is 7.00%. So if you invest the difference and get at least 7%/year returns, you come out ahead. That's not as great of a deal as it sounds -- that is, if my quick Excel math is correct!
This post was edited on 3/15/11 at 9:09 pm
Posted on 3/16/11 at 8:56 am to fastedLSU
I have a $1M policy - term life and I pay right at $60.00 per month.
My wife has a $750K policy - term life and she pays right at $39 per month.
I'm older than her, but she's better looking than me.
My wife has a $750K policy - term life and she pays right at $39 per month.
I'm older than her, but she's better looking than me.
Posted on 3/16/11 at 11:30 am to Will Cover
Thanks guys. Haven't made any decisions yet but I appreciate the input. As for it being a scam, that's not the case. I have been working with Northwestern Mutual as well as a few other pretty substantial companies.
Posted on 3/17/11 at 10:09 am to fastedLSU
In my experience it is cheaper getting quotes online. Some of the bigger companies offer discounts when ordering online, because it is less work for them. But to be safe you could compare quotes online, pick the best offer and try a local agency to see if they can match it or do better.
I recommend this site for online comparing: https://www.quotes-center.com/life-insurance-premium-calculator
I recommend this site for online comparing: https://www.quotes-center.com/life-insurance-premium-calculator
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