re: Wife pregnant for first time...

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Did it when I was 25 so it's only like $350/yr. Hopefully by the time we're 55, I won't need anything. It's amazing how much cheaper it is to lock it in when you're young (and healthy )

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It is almost certainly not this way anymore because computers can handle the claim studies and complex calculations but this used to be even more true.

For instance, a number of "age bands", which is how they would group common risk people, would end when you were say 29, 39 or 49. So if you bought when you were 29, you'd pretty much get the exact same rate while cutting out 3-4 years of premiums

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Hopefully by the time we're 55, I won't need anything.

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While obviously the market hasn't been kind to investors, insurance companies reinvest their premiums in bonds (Why insurance companies got hammered during financial crisis). Considering hte bond buying program by the FED is crowding out the market (BatSignal for Benny&Jets) insurance companies are getting pretty avg returns. If you honestly reinvest your savings from not getting a ROP rider and taking term instead Whole etc, you should technically get a better deal. Now that is not taking into account commissions, investment fees, capital gains taxes etc. Just saying from a math standpoint, insurance is an investment and very conservative one at that




ETA: I am fairly new to the field. THere was another person in actuarial work on the board that had a number of years on me and he probably could critique/run circles around what I said