Anyone Have Advice on Life Insurance

iVillage Member
Registered: 07-24-2001
Anyone Have Advice on Life Insurance
8
Tue, 07-09-2013 - 6:44pm

I'm wondering if anyone has any advice on getting life insurance.  I'm looking for a simple 20 year term policy for my husband.  I'm getting a bit frustrated with all the gimmicky things with life insurance.  I'm getting quotes for "hybrid term" policies even though I'm clearly stating I'm only looking for simple term.  And everyone has riders built into every policy.  So much of this seems like scams.  

Is there anything I should be looking out for, or leary of that I might be missing?  Anyone have a decent policy that they could recommend a good company to me??  

Ugh, this is no fun at all.

Avatar for mahopac
iVillage Member
Registered: 07-24-1997
Wed, 07-10-2013 - 10:06am

Just stick to what you want.  If all you need is a payment if your DH dies, then term is it.  You just have to be firm about it and say no, no, no when an agent tries to pitch something else.

DH & I have had term life insurance for 20 years.  His is through John Hancock, mine are through Berkshire Life and Guardian (I have more because I'm the breadwinner).  We got his 20 years ago through a local insurance agent, and mine are through the financial advisor I use for both my business IRA and my personal investments.

There does come a time in life when whole life insurance might be useful as a way of balancing your investment portfolio.  I trust my financial advisor completely - he is the BIL of a former colleague and as honest as the day is long - so when he proposed it as a way of balancing my portfolio, I listened.  I made him explain it to me several times and give me a bunch of illustrations, and eventually I did move $300K of my $1M policy into it.  It costs a lot but I view it as an investment strategy, not as life insurance.  Of course it does serve that function if I die, but that's not why I did it.

iVillage Member
Registered: 10-09-1999
Wed, 07-10-2013 - 10:49am

We have term life insurance.  I believe if what you are looking for is "life insurance" then term is the way to go.  I don't believe in life insurance as an investment.  We purchased ours locally & it is a Thrivent life ins product.  You can log onto DaveRamsey.com & he has a list of "endorsed local providers"  that he recommends in your area on his home page on the right hand side.  We are hoping to eventually be "self insured"  & not need life insurance, when our mortgage is paid off & we have savings built up & investments built up then our estate will stand on its own & we won't need life insurance. 

Good luck & I hope you find a good reasonable policy.

cindylee

iVillage Member
Registered: 05-08-2006
Wed, 07-10-2013 - 10:10pm
In Massachusetts, we have Savings Bank Life Insurance. I don't know if other states have similar programs, but this is a very good value because there is no agent - the bank makes a small commission, but it is an adjunct to their business, not the main source of income.
Community Leader
Registered: 08-25-2006
Thu, 07-11-2013 - 1:46pm

I don't blame you for being frustrated.  I use Modern Woodman.  I was solicited after my first born and have stayed with them. 

I have always had 10 year term, with the last one being a 15 year term.  Puts my youngest into young adulthood. 

I also had to kind of be firm when it was time for renewal.  They wanted me to get enough to pay my house off, but that was not what I intended the cash to be for. 

I would just keep asking people you know. 

Serenity
Avatar for mahopac
iVillage Member
Registered: 07-24-1997
Thu, 07-11-2013 - 2:28pm

Serenity makes a good point.  You should know what you want the insurance to cover.

As the breadwinner of the family, if I die, I want DH to have enough insurance to pay off the mortgage, finish our kids' education, and live off of for the rest of his life.  He has been a SAHD for 17 years, and his prior field (social work) pays terribly, so he would never be able to replicate our standard of living if he had to provide for himself.  I want him to have that standard of living, with or without me.

If DH dies, I don't need nearly as much.  I'd need to pay for people to do what he does, which is considerable - I'd need a handyman and a family concierge, for starters - but there would be no loss of income.

If we both die, we'd need to provide for our kids' care.  They are two college students and a 13yo, but whoever takes them would probably need a larger house and would have to pay for their expenses.  If both of us die, we've made it possible for someone to take care of them as well as for each of them to have money to start off in life.

Think through your scenarios before you sign up for anything.

iVillage Member
Registered: 07-24-2001
Mon, 07-15-2013 - 4:15pm

Thanks for all the advice.

I do know exactly how much and what I'm looking for.  I need approx $750,000 for 20 years.  Nothing fancy.

I think we are on track now.  There is a nurse coming on Thursday.  Hopefully H will qualify for a really good rate.

Thanks again!!!

iVillage Member
Registered: 12-31-2010
Tue, 07-16-2013 - 4:48pm
Oh yes there is so much to think about, wish I could help you Bumbling. Any online search just goes to a bunch of agents so they can all hound you. Honey, you really need to seek the advice of someone with the recent questions you have. I know it is hard to find someone you trust, but good planners ARE out there. Can you message me and I can at least try to help? Don't want to step in if you do not want any assistance, but there are definite things to look for, including the rating of the company.
#Marie
iVillage Member
Registered: 07-24-2001
Tue, 07-16-2013 - 11:27pm

Hey Marie,

Thanks for your reply.  I am being conscious about the AM Best ratings for the companies I'm dealing with (nothing under an AM BEST A+).

Any other hints?