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Life insurance questions
Posted on 1/27/17 at 3:40 pm
Posted on 1/27/17 at 3:40 pm
I am 29 year old healthy person with a wife and little one on the way. I currently have life insurance through my work (500k),that is only valid while employed there. I will be leaving that job in 2.5 years (finish of residency),and therefore will lose that coverage. The current insurance is dirt cheap ($7 a month or so).
I am thinking of locking insome term insurance outside of work. How would you recommend going about this?
What do you recommend in terms of length?
Which companies?
Tanks.
I am thinking of locking insome term insurance outside of work. How would you recommend going about this?
What do you recommend in terms of length?
Which companies?
Tanks.
Posted on 1/27/17 at 3:41 pm to GeauxTigers777
Zander dot com. It gives you many companies to choose from, AIG was the cheapest so I went with them. Relatively painless, they kept me updated throughout the underwriting process.
Twenty year term.
Twenty year term.
This post was edited on 1/27/17 at 3:43 pm
Posted on 1/27/17 at 3:50 pm to GeauxTigers777
1-1.5 million 20 yr term, lock it in, your young, cheap as shite. Check with your usual big named companies... ohio national is another one.
Posted on 1/27/17 at 3:53 pm to GeauxTigers777
I'd lock in 20 years for the amount of:
Your student loans
Mortgage
and between 3-10 years of your income
Whatever that number is.
However, spend the extra $10 a month and go with a well-backed insurer, not a fly-by-night no name company. You would want your dependent(s) to have an easy process obtaining the tax free benefit.
Your student loans
Mortgage
and between 3-10 years of your income
Whatever that number is.
However, spend the extra $10 a month and go with a well-backed insurer, not a fly-by-night no name company. You would want your dependent(s) to have an easy process obtaining the tax free benefit.
Posted on 1/28/17 at 11:27 am to BamaCoaster
quote:
I'd lock in 20 years for the amount of: Your student loans Mortgage and between 3-10 years of your income Whatever that number is. However, spend the extra $10 a month and go with a well-backed insurer, not a fly-by-night no name company. You would want your dependent(s) to have an easy process obtaining the tax free benefit.
All great advice.
Don't worry about whole life either, I'd make good money selling that but in 9/10 cases it is not beneficial. Term would be perfect.
This post was edited on 1/28/17 at 11:28 am
Posted on 1/29/17 at 9:57 am to GeauxTigers777
I locked in a 20yr, 1 million policy with AIG last week.
I'm 33 non-smoker, and considered healthy.
My premium is about $32 a month. Went through Select Quote. Simple process.
I'm 33 non-smoker, and considered healthy.
My premium is about $32 a month. Went through Select Quote. Simple process.
Posted on 1/29/17 at 10:32 am to GeauxTigers777
The only thing I'd disagree with is the advice to get a 20 year policy. I'd tell you to strongly consider the 30 year (to age 59) and not the 20 year. At age 49 you will likely have a lot more risk than you do even now. You also will be at your peak earning years. By age 59, you will hopefully have less debt and higher wealth along with less familial responsibility as you are just starting your family now (kids in High School at age 49). Lock in that extra 10 years as the premium amount at age 29 will be a reasonable difference. Shopping for a half million dollar policy at age 49 when you take a couple of medications and are 20 lbs overweight can be a real shocker. And of course that doesn't even take into consideration if you have a serious illness that renders you an unacceptable risk and makes you uninsurable.
Posted on 1/30/17 at 4:48 pm to GeauxTigers777
If you go with a longer term (20-30yrs), make sure that it is convertible throughout the length of the term...even better would be convertible throughout the term and to all policies. Most policies will be convertible but only during the first 10 or 15 yrs and to only one policy.
Sounds like you may become a Physician, so check into Wavier of Premium (WOP). Find a policy with (WOP) which if you become disabled, during your term policy, you can then convert to a permanent policy and the premiums on the permanent policy will continue to be waived as long as you are disabled...this will obviously increase the monthly cost.
If you don't want to spend the extra for WOP...maybe allocate the difference to a policy on the Wife. Depending on how far along she is, they may insure her before she has the baby.
Sounds like you may become a Physician, so check into Wavier of Premium (WOP). Find a policy with (WOP) which if you become disabled, during your term policy, you can then convert to a permanent policy and the premiums on the permanent policy will continue to be waived as long as you are disabled...this will obviously increase the monthly cost.
If you don't want to spend the extra for WOP...maybe allocate the difference to a policy on the Wife. Depending on how far along she is, they may insure her before she has the baby.
Posted on 1/30/17 at 5:43 pm to GeauxTigers777
Does your wife work? How's her income compared to yours? Some people recommend a multiple of your income but imo, if you have enough to pay off the mortgage and other loans and a little extra, the little lady would be just fine if she has a decent job. If you are single income you definitely want to be on the higher end multiple someone else suggested earlier.
This post was edited on 1/30/17 at 5:45 pm
Posted on 1/30/17 at 6:14 pm to GeauxTigers777
Northwestern Mutual
20 year term
$1,000,000
Convertible to whole life with no medical if done within 10 years.
Looking about $40-50/month if you're healthy.
20 year term
$1,000,000
Convertible to whole life with no medical if done within 10 years.
Looking about $40-50/month if you're healthy.
Posted on 1/30/17 at 7:40 pm to GeauxTigers777
I bought a 30 year policy at age 35. Looking back, I probably should've bought a 20 year policy at age 30, and an additional 30 year policy for good measure at that time. If you are a physician with a good game plan, you will be self insured by 60, if not before. I would worry more about disability insurance. The amount of coverage depends on your speciality and lifestyle.
Posted on 1/31/17 at 9:48 am to The Tom Arnold
quote:
Northwestern Mutual 20 year term $1,000,000 Convertible to whole life with no medical if done within 10 years. Looking about $40-50/month if you're healthy
Meh..Only convertible within the first 10yrs. You can find a policy for the same price that is convertible throughout entire the term.
Posted on 1/31/17 at 12:55 pm to The Tom Arnold
quote:
Northwestern Mutual
20 year term
$1,000,000
Convertible to whole life with no medical if done within 10 years.
Looking about $40-50/month if you're healthy.
I'd look at Guardian first. Same deal, but you can get a conversion rider that extends it through the end of the term. They also have the best long-term disability policies for white coats(you mentioned residency, assume you're a doctor).
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