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Life Insurance questions

Posted on 9/28/16 at 7:46 pm
Posted by Sho Nuff
Oahu
Member since Feb 2009
11927 posts
Posted on 9/28/16 at 7:46 pm
Looking into getting Term through NWM and he showed me 20 years for about $32 a month ($300k coverage). $500k would be $45. I am 41. He said they don't do 30 years but he can get me Prudential for about $38 month ($300k).

He mentioned if I did go with NWM I can convert that Term to Whole Life if I wanted within 10 years with no medical check. But at 51 it would be like $9k a year for the $300k or I could convert just some of it. Not sure I get the reason to convert other than if in 10 years I find out I have some disease then I can keep the insurance going even after the Term. But frick it, I'll probably die off in 20-30 if that's the case

My wife has insurance through work but he brought up a good point about her not working there for whatever reason and then losing coverage. She's only 35 so getting her Term now is only $22 a month for $300k for 20 years with NWM. I just looked and she gets $75k free and then we bought her up $225k in Supplemental for $10 month. Total of $300k for $10/month from her job.

Anyway, looking for advice/suggestions. Should I look local or will most insurance agents have close to the same #s with these ins companies? I'm thinking I want to do the 30 year. Should I get for wifey while she's younger and the rates are low or just stick with her work?

TIA
Posted by Gutterman81
Member since Aug 2007
300 posts
Posted on 9/28/16 at 9:27 pm to
I got a million through banner...shopped with Zander. 28 a month. 15 year. Yes, get it while she's young
This post was edited on 9/28/16 at 9:28 pm
Posted by Tigerpaw123
Louisiana
Member since Mar 2007
17286 posts
Posted on 9/28/16 at 9:27 pm to
Are those hard numbers? Have they already done the medical check, or is he showing you best case?
Posted by BamaCoaster
God's Gulf
Member since Apr 2016
5307 posts
Posted on 9/28/16 at 9:37 pm to
He's showing the best case, so unless you're super healthy, plan on paying a tad more.

If you can afford it, get disability as well.
Posted by Gutterman81
Member since Aug 2007
300 posts
Posted on 9/29/16 at 6:27 am to
Friend of mine used to work for nwm...the love them some whole life
Posted by ThatsAFactJack
East Coast
Member since Sep 2012
1548 posts
Posted on 9/29/16 at 9:30 am to
I have term 80 thru NWM. $500k for $41/month. I also have Waiver of Premium Rider. Convertible at any time to permanent. Dividends are used to reduce monthly premium (Would be $49/month without this feature).

I am 37.
This post was edited on 9/29/16 at 9:40 am
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37162 posts
Posted on 9/29/16 at 9:33 am to
The benefit of getting Term insurance through NWM is 100 percent in the ability to convert to whole without another medical check. As has been discussed on here, whole life can make some sense in some limited situations where an individual is looking for additional tax-advantaged buckets.

The term conversion feature would be neat if you know you were going to die just after the term was complete. Otherwise, you would have to be in a situation where down the road, you were looking for buckets to put money AND you were less healthy than you are now. That could make the conversion feature have some value.

I know NWM used to sell Term 75, you may want to have your agent run some numbers for you.

Because of the term conversion feature to what is probably the best whole policy on the market (NWM whole and blended whole products), term is going to be somewhat more expensive than going with a provider like Banner.

As for your wife, I would get her some as well. Diversification is not a bad idea in life insurance. Each of us have policies through our work, policies through AAA, and policies through Banner. I have a Level 20 policy from NML as well, that I bought when I was young and had a friend who was trying to make some sales =)
Posted by Snoopy04
Republic of Texas
Member since Aug 2015
3015 posts
Posted on 9/29/16 at 11:09 am to
Any time you can take advantage of converting term to perm with no medical check is great. your main thought process needs to be what your finances are going to look like over the next 20-30 years (life of the policy). If you any debts that are in high amount such as homes, 2nd homes, tuition for children, cars and maybe some extra toys then you would want to make sure the amount of debt is covered with your term. If you don't have much debt and/or it won't take long to pay off that debt then that's when the converting to permanent is good.

Depending on NWM's interest rate on their permanent life policies, it may be best to just get the term and look to budget your investment money elsewhere. I am an advocate for the high amount term for less dollars, but not so much for the high permanent that costs quite a bit. Granted, if your OJ Simpson, then putting all your money in untouchable life insurance and annuities is a great idea!

Side note: If you have children who are starting a family of their own, make sure you have them get high dollar term policies while they're young and can afford $30/month. If something unfortunate were to happen to them, you now take responsibility of their finances and your retirement plans could be shredded. Kind of a morbid thought, but then again it is life insurance we are talking about.
Posted by MSTiger33
Member since Oct 2007
20403 posts
Posted on 9/30/16 at 9:04 am to
I got a $2 million 30 year term at 40 years of age. It costs about $2k a year. My policy is through Mutual of Omaha.
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