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Message
re: Everybody wants to sell me insurance...
Posted on 3/20/14 at 3:54 pm to ell_13
Posted on 3/20/14 at 3:54 pm to ell_13
Looks like a solid plan to me. The most important thing is to get that death benefit number right. Your wife won't care if it is term or WL if/when you pass away, and neither will you. The good thing with the way you are approaching it, is that you leave yourself with all the flexibility you could want. Especially with a newborn and what not, budgets are nice, but they can go up in flames quickly 
The conversion is real simple when you do it, and won't require a medical even if you do it 10 years from now or whenever.
I'm sure the agent included it, but just double check to make sure the disability waiver of premium benefit is on the term policies.
The conversion is real simple when you do it, and won't require a medical even if you do it 10 years from now or whenever.
I'm sure the agent included it, but just double check to make sure the disability waiver of premium benefit is on the term policies.
This post was edited on 3/20/14 at 3:58 pm
1
Posted on 3/20/14 at 3:57 pm to GoCrazyAuburn
quote:Was discussed. But thanks for reminding me.
make sure the disability waiver of premium benefit is on the term policies.
I feel good about it. There was a ton of terminoligy that I had to learn before I felt comfortable discussing these things. We had 3 meetings before I finally decided on a plan and put my signature on something.
Thanks again for the help and insight.
Posted on 3/20/14 at 4:01 pm to ell_13
Any time. There is definitely a lot of terminology to understand, so it is a good sign your guy is willing to help. I know plenty that will just push until the product is sold, and the client honestly has no idea. There are those at every company. Sounds like your guy knows what he is doing, so you should be in good hands.
Posted on 3/20/14 at 7:42 pm to GoCrazyAuburn
First, I agree with the comments about an umbrella policy. I'm not clear how people who call themselves "financial planners" are so remiss about this. They are mostly commission driven. Mostly, not all.
With respect to life insurance, which is actually premature death insurance, I own term and universal. The insurance cost inside my universal contract is actually lower than many budget term policies. I fund it for death benefit purposes, and expect the cash value to exhaust itself at 90 funded at present levels, based on the guaranteed side. It's unlikely I'll need it at 90. I'd anticipate over funding it at age 50 for other reasons.
I would maintain that proper financial planning means that eventually most won't need pre-mature death insurance.
There are a lot of decent pre mature death insurance companies out there. I like the model where they run it like a property casualty company, and the sales persons are as knowledgeable as a decent commercial insurance agent. Agent being different than sales person.
With respect to life insurance, which is actually premature death insurance, I own term and universal. The insurance cost inside my universal contract is actually lower than many budget term policies. I fund it for death benefit purposes, and expect the cash value to exhaust itself at 90 funded at present levels, based on the guaranteed side. It's unlikely I'll need it at 90. I'd anticipate over funding it at age 50 for other reasons.
I would maintain that proper financial planning means that eventually most won't need pre-mature death insurance.
There are a lot of decent pre mature death insurance companies out there. I like the model where they run it like a property casualty company, and the sales persons are as knowledgeable as a decent commercial insurance agent. Agent being different than sales person.
This post was edited on 3/20/14 at 7:45 pm
Posted on 3/21/14 at 12:32 am to Iowa Golfer
quote:
which is actually premature death insurance
Term, yes. WL no. Characterizing them in the same light really isn't fair.
quote:
expect the cash value to exhaust itself at 90 funded at present levels, based on the guaranteed side
What do you mean by this?
quote:
Agent being different than sales person.
huh?
Posted on 3/21/14 at 7:24 pm to GoCrazyAuburn
quote:
quote:
which is actually premature death insurance
Term, yes. WL no. Characterizing them in the same light really isn't fair.
Insurance means to insure. In both cases you are insuring against pre-mature death.
quote:
expect the cash value to exhaust itself at 90 funded at present levels, based on the guaranteed side
What do you mean by this?
I had the proposal solved for zero cash value at 90 based on lowest guaranteed interest rate, and highest guaranteed cost of mortality
quote:
Agent being different than sales person.
huh?
Sales people sell. Agents actually understand business. The difference between a purely producer role, and an advisory role.
Posted on 3/21/14 at 11:02 pm to white perch
I have a cheap accidental death policy too b/c of the crazy amount of time I spend on the road. Statistically it's a horrible bet but it's so cheap that it's a solid supplement to my term life policies. I will probably get another 10 or 15 year term policy soon, since my income has really risen lately and I feel a bit vulnerable.
Posted on 3/22/14 at 8:36 am to white perch
quote:Way too vague to give one answer. It depends on what your needs are. You being as young as you are, and I will presume you are healthy, you can should definitely get it now. If you aren't married I would say get a UL. I don't like term myself because I don't like throwing money away. Only 2% of all term policies payout. If you do get term get a return on premium. You will pay a little more, but you will at least get all your money back, but even saying that has its draw backs. If you get a 20 year ROP term and it matures, you will get all the money back, but the value of the dollar 20 years from now will be substantially less than it is now. In this scenario it just depends on your aversion to risk.
...which ones do I need?
Posted on 3/22/14 at 9:30 am to MontyFranklyn
quote:
I don't like term myself because I don't like throwing money away.
quote:
You will pay a little more, but you will at least get all your money back,
Yeah because it's better to pay a much higher premium, and get back your principle in 30 years than it would have been to save all that money on a term policy and invest it yourself and earn 7 % per annum over 30 years.
Term life is the way to go 98.7% of the time-cover your risk affordably and invest the difference or use it to get better disability or critical illness coverage. Use whole life for an entirely separate strategy, and only AFTER a 30 year term is in place.
Posted on 3/22/14 at 1:25 pm to Lsupimp
quote:
policy and invest it yourself and earn 7 % per annum over 30 years
To be fair, you can do that with a permanent policy too.
Posted on 3/22/14 at 1:26 pm to Iowa Golfer
quote:
Sales people sell. Agents actually understand business. The difference between a purely producer role, and an advisory role.
That makes more sense. I thought you were saying you didn't want your agent to be the person who sold you te policy.
Posted on 3/22/14 at 1:28 pm to Iowa Golfer
quote:
I had the proposal solved for zero cash value at 90 based on lowest guaranteed interest rate, and highest guaranteed cost of mortality
Won't that lapse your policy at that point?
Posted on 3/23/14 at 8:39 am to GoCrazyAuburn
quote:
Won't that lapse your policy at that point?
If I fund it to lapse, it will lapse. Why would I need life insurance at age 90? Estate taxes have been addressed.
Posted on 3/23/14 at 10:31 am to Lsupimp
quote:Didn't I mention that the value of the dollar would be less? Can you guarantee that 7%?
Yeah because it's better to pay a much higher premium, and get back your principle in 30 years than it would have been to save all that money on a term policy and invest it yourself and earn 7 % per annum over 30 years.
Posted on 3/23/14 at 11:00 am to Iowa Golfer
quote:
If I fund it to lapse, it will lapse. Why would I need life insurance at age 90? Estate taxes have been addressed.
That's what I was making sure you understood. If that is the way you you are planning for it, go for it. I personally have other ideas, but that is the beauty of individual plans.
I am however interested in your statement that the cost of te insurance for your UL is less than term. I've personally never seen one like that, but pretty cool if you have one.
Posted on 3/23/14 at 11:09 am to GoCrazyAuburn
GCA,
What is your opinion of Guardian life insurance?
It seems good when I research it. I purchased Guardian WL from a friend when he was getting started. I argued with his manager that I could buy cheap term and invest the difference, but the pros of WL make sense to me.
What is your opinion of Guardian life insurance?
It seems good when I research it. I purchased Guardian WL from a friend when he was getting started. I argued with his manager that I could buy cheap term and invest the difference, but the pros of WL make sense to me.
Posted on 3/23/14 at 11:15 am to Cracking
I am however interested in your statement that the cost of te insurance for your UL is less than term. I've personally never seen one like that, but pretty cool if you have one.
I believe the cost of the actual insurance is spelled out pretty clearly in the contracts. I also beleive so are the expenses etc, and the maximum highest cost of insurance.
I'm a funny guy, insurance policies are contracts, and I read through these before I ever sign anything.
I believe the cost of the actual insurance is spelled out pretty clearly in the contracts. I also beleive so are the expenses etc, and the maximum highest cost of insurance.
I'm a funny guy, insurance policies are contracts, and I read through these before I ever sign anything.
Posted on 3/23/14 at 11:15 am to Cracking
It's okay, but it's historical performance has not been as good as New York Life, Northwestern Mutual, or Mass Mutual. Those are usually the ones I recommend. However, it has been a while since I've really run accross any guardian WL policies. I can look into them more on Monday if you would like. Do you know what return they guarantee on te policy?
They are much more known for their DI policies.
They are much more known for their DI policies.
Posted on 3/23/14 at 11:19 am to Iowa Golfer
quote:
I believe the cost of the actual insurance is spelled out pretty clearly in the contracts. I also beleive so are the expenses etc, and the maximum highest cost of insurance.
Yea, generally they are. I don't mean to seem like I'm questioning you on it, just that it is something I've never seen before. I've seen a lot of policies, but understandably have not seen them all. Just find it very interesting if true.
quote:
I'm a funny guy, insurance policies are contracts, and I read through these before I ever sign anything.
Not funny, smart.
Posted on 3/23/14 at 11:35 am to GoCrazyAuburn
Got DI from him also.
I'll need to review it's minimum return guarantee as its been a while since I've thought about the policy other than paying the premium.
I'll need to review it's minimum return guarantee as its been a while since I've thought about the policy other than paying the premium.
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