- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
10 vs 20 year Term Life
Posted on 6/14/18 at 7:31 pm
Posted on 6/14/18 at 7:31 pm
Any prevailing wisdom?
I have quotes for both, and the 20 seems to be “cheaper” in terms of risk. I’m in my 30s and also like the idea of securing term until I’m in my 50s.
Thoughts?
I have quotes for both, and the 20 seems to be “cheaper” in terms of risk. I’m in my 30s and also like the idea of securing term until I’m in my 50s.
Thoughts?
5
Posted on 6/14/18 at 7:35 pm to TigerDeBaiter
Depending on the age of your kids the 2p year could get you all the way through to the time you don't need life insurance. If you save and pay your debts you could self insure by the time the 20 runs out. And getting 20 now will be cheaper than getting 2 10's
Posted on 6/14/18 at 7:48 pm to TigerDeBaiter
10 years goes way too fast bro...get at least 20.
Posted on 6/14/18 at 8:13 pm to Mingo Was His NameO
quote:
Depending on the age of your kids the 2p year could get you all the way through to the time you don't need life insurance. If you save and pay your debts you could self insure by the time the 20 runs out. And getting 20 now will be cheaper than getting 2 10's
That is what I was thinking as well, or at least much less. Kids will be off to college. Would still want some extra, but could self insure most majority from there.
To clarify the “cheaper” risk comment. I’ll give approx figures as an example.
10 year 1.5MM premium of $75
20 year 1.5MM premium of $125
So, now that we’ve done the physicals and been assigned our risk profiles, I asked him to changed my age to be 10 years older and re price the same coverage (of course, this is at today’s rates and health profile). He came back with:
10 year 1.5MM premium of about $100.
Like I said, not exact numbers, but math checks out to be almost equal, which was surprising to me. Not only would we be paying less (due to inflation), but it also negates a huge risk that our health could change in the years to come.
I leaned to 20 but wanted to get some others opinions.
Posted on 6/14/18 at 8:20 pm to TigerDeBaiter
20 year level if you can afford it.
Posted on 6/14/18 at 8:23 pm to TigerDeBaiter
quote:
10 year 1.5MM premium of $75
20 year 1.5MM premium of $125
Is this an annual premium?
Posted on 6/14/18 at 8:28 pm to meeple
For real? 
Clearly not.
Clearly not.
Posted on 6/14/18 at 8:37 pm to TigerDeBaiter
Asking because I just renewed my 20 yr policy. I’m late 30s. I thought I was getting ripped off because premiums are usually described as a per year premium.
Posted on 6/14/18 at 8:46 pm to meeple
No, no... haha. I wish.
Numbers were monthly. And to be honest, I inflated them a little bit to make the math example simpler. The proportions are the same.
Numbers were monthly. And to be honest, I inflated them a little bit to make the math example simpler. The proportions are the same.
Posted on 6/17/18 at 11:12 pm to TigerDeBaiter
The benefit of the 20 year is that your health is locked in.
No risk for more weight, cholesterol, blood pressure, or god forbid something serious.
My general rule of thumb is to keep more of my money in my pocket longer (i.e. a 10 year and then another 10 year).
But why risk the health worsening or making you uninsurable? If it costs the same and you know you need it, get the 20 year.
No risk for more weight, cholesterol, blood pressure, or god forbid something serious.
My general rule of thumb is to keep more of my money in my pocket longer (i.e. a 10 year and then another 10 year).
But why risk the health worsening or making you uninsurable? If it costs the same and you know you need it, get the 20 year.
Posted on 6/18/18 at 7:23 am to TigerDeBaiter
quote:
Thoughts?
I think if you need 20 years, get the 20 years. The older you get, the more likely it is you will take a 10, IMHO.
Posted on 6/18/18 at 10:23 am to Ace Midnight
Go 20. You can always cancel it
Posted on 6/18/18 at 10:26 am to TigerDeBaiter
If you're focused on death, buy term. 10 or 20. No care. You've got a max 15% chance it'll pay by the time the term runs.
Posted on 6/18/18 at 5:15 pm to meansonny
quote:
The benefit of the 20 year is that your health is locked in. No risk for more weight, cholesterol, blood pressure, or god forbid something serious.
This was my thought too, and the quotes don’t seem to “charge” much of a premium to extend to 20, so it’s seeming like a no brainer. As another mentioned, I can always cancel and reevaluate if my circumstances change.
Posted on 6/19/18 at 10:22 am to TigerDeBaiter
I would go 20, you can always cancel.
But something to consider is that you don't need as much in 10 years as you do now. If you need 1.5 mil now you may only need $500-750k in 10 years, as you should have considerable savings by then.
Another thing to consider is if your wife will be back to work by then? Many wives quit until kids are all school age and then many go back to work part time or so. Additionally, in 10 years it's a lot easier for a single mom to work then when kids are younger.
I'm by no means in insurance, but get some life insurance on your wife too. Even if she doesn't work, she has a major economic impact on your family life and it will cost a lot to replace her.
But something to consider is that you don't need as much in 10 years as you do now. If you need 1.5 mil now you may only need $500-750k in 10 years, as you should have considerable savings by then.
Another thing to consider is if your wife will be back to work by then? Many wives quit until kids are all school age and then many go back to work part time or so. Additionally, in 10 years it's a lot easier for a single mom to work then when kids are younger.
I'm by no means in insurance, but get some life insurance on your wife too. Even if she doesn't work, she has a major economic impact on your family life and it will cost a lot to replace her.
This post was edited on 6/19/18 at 10:23 am
Posted on 6/19/18 at 8:32 pm to BestBanker
quote:
If you're focused on death, buy term. 10 or 20. No care. You've got a max 15% chance it'll pay by the time the term runs.
Terms pay out on about 3% of the policies written.
Posted on 6/19/18 at 9:29 pm to baldona
quote:
I'm by no means in insurance, but get some life insurance on your wife too. Even if she doesn't work, she has a major economic impact on your family life and it will cost a lot to replace her.
Absolutely. We were planning on that already. But solid advice.
Posted on 6/19/18 at 9:50 pm to meansonny
quote:
Terms pay out on about 3% of the policies written.
I am very happy none of my term life insurance ever paid out.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News