How many of you have life insurance through a third party insurer as opposed to something from work?

[Nocturnal]

I was wondering who else has life insurance from a third party insurer?

I have a plan through State Farm. I'm 26 years old.

I'm really just looking for places where I can save some money.

I don't have one through work at this time.

What are your opinions on life insurance?

 

[brtspears2]

I only got life insurance through work since it is extremely cheap. 4x yearly salary coverage for 4 bucks a month. At the moment, this is just a goofy gamble as I don't expect to die and have no one to support.

 

[QED]

I have the work one since it is relatively cheap, but my main policy is with a seperate insurer so that I can lock in a low rate and keep it even if I switch jobs.

It's not that big of a deal now, but once you get into your 40s, 50s, or 60s the premiums really skyrocket if you have to switch policies.

 

[MotionMan]

My work does not offer life insurance, so I got my own.

I am worth more dead than alive, but then who would get things off the top shelf of the pantry for my wife?

MotionMan

 

[runzwithsizorz]

Originally posted by: MotionMan
My work does not offer life insurance, so I got my own.

I am worth more dead than alive, but then who would get things off the top shelf of the pantry for my wife?

MotionMan

After the insurance payout, and a few trips to the Bahamas, your wife will have a replacement, AND a new poolboy. :shocked:

 

[MotionMan]

Originally posted by: runzwithsizorz

Originally posted by: MotionMan
My work does not offer life insurance, so I got my own.

I am worth more dead than alive, but then who would get things off the top shelf of the pantry for my wife?

MotionMan

After the insurance payout, and a few trips to the Bahamas, your wife will have a replacement, AND a new poolboy. :shocked:

So true.

MotionMan

 

[Rike]

Remember that it's really death insurance. You bet the insurance company that you will die before they think you will. :evil:

I have insurance through work (which is weak, but costs me nothing) and 3rd party (good, and not too pricey). If you are looking to save money, I've always heard that there are much better ways to save than life insurance. My 3rd party insurance is term insurance which is why it's relatively cheap. 25 year term, fixed annual premium for the term. My wife and I are covered until the kids are adults, which is what we are really concerned about.

 

[henryay]

I have life insurance through statefarm only because of their multiple line discount.
My life insurance is like $125/yr and the discount for my auto ins is $149/yr.

 

[mundane]

Through work. Death and Dismemberment, or something like that. I should probably re-read those docs.

 

[kranky]

If no one is dependent on your income, you don't need life insurance. There is one consideration - there is always the possibility that when you do have a family, you might not be able to get life insurance for some health-related reason.

As QED said, work-provided life insurance is nice but you can't take it with you if you switch jobs. So you may want to consider a 30-year or 40-year level term policy that is guaranteed renewable and non-cancelable. Your premiums will be fixed for the duration of the policy. They also have term policies where the premium is very low to start but increases over time - as long as the increases are defined up front, that might be a good choice as well.

Don't go for any whole life or variable life deal. All that does is tack on an investment piece to the insurance, increasing your costs. Do your investing separate from your life insurance.

Term insurance is very cheap and there is a lot of competition. Stick to insurers rated A++ (Superior) by A.M. Best because it won't cost you any more.

 

[Kelemvor]

Just don't get scammed into the ones called universal life or variable life or things like that. They are a huge waste of money. Get a decent Term life insurance and take what you would have been spending in the universal one and invest it. You will get sooo much more money that way.

http://www.daveramsey.com/the_...nsurance_3481.html.cfm

 

[ponyo]

I used this site to comparison shop couple years ago.

http://www.term4sale.com/

I just checked the prices again and the premiums have dropped another $40 a year since I got my policy couple years back.

I have life insurance to protect my daughter until she's an adult. After that, she's on her own and I won't need the policy.

 

[joutlaw]

Originally posted by: kranky
If no one is dependent on your income, you don't need life insurance. There is one consideration - there is always the possibility that when you do have a family, you might not be able to get life insurance for some health-related reason.

As QED said, work-provided life insurance is nice but you can't take it with you if you switch jobs. So you may want to consider a 30-year or 40-year level term policy that is guaranteed renewable and non-cancelable. Your premiums will be fixed for the duration of the policy. They also have term policies where the premium is very low to start but increases over time - as long as the increases are defined up front, that might be a good choice as well.

Don't go for any whole life or variable life deal. All that does is tack on an investment piece to the insurance, increasing your costs. Do your investing separate from your life insurance.

Term insurance is very cheap and there is a lot of competition. Stick to insurers rated A++ (Superior) by A.M. Best because it won't cost you any more.

You speak the truth. Only thing I'd change is you may want a very small policy to prevent your immediate family members from paying funeral expenses... maybe 10K or so.

Whole Life is outdated, but if you are a poor investor or need another investment vehicle it can be a good choice. In general Whole Life insurance will build cash value equal to face amount by Age 100. They also provide dividends which can offset the premiums if the market is good. Whole Life can also be combined with different coverages or riders... for example

Whole Life - 100,000
30 Year Decreasing Term - 300,000 - for your mortgage.
30 Year Spouse Term Rider - 10,000 - in case your spouse dies
Child Term Rider - in case your child dies to pay for funeral expenses... they are usually 10K

So you can have a good mix of products that build value and have your family protected in case anything happens.

I would strongly advise to stay away from universal or variable life policies. They sound good on paper but are not so great. Universal Life is the red headed step-child of the industry IMO.

It's also good to point out that if you go out on your own, you will get examined pretty closely by underwriters. This will be good if you are of good weight and health and don't smoke. Rates are higher across the board overweight people and smokers.

 

[MrChad]

This is probably a stupid question, but how do you decide on the term length for life insurance? I am 27 years old and I have a 9 month old son. Obviously if I buy 20 year term life insurance now, he will be protected until adulthood, but if my wife and I have more kids (which we plan to), 20 years won't cut it for them. Does a 30 year term policy make sense then?

 

[kranky]

Originally posted by: MrChad
This is probably a stupid question, but how do you decide on the term length for life insurance? I am 27 years old and I have a 9 month old son. Obviously if I buy 20 year term life insurance now, he will be protected until adulthood, but if my wife and I have more kids (which we plan to), 20 years won't cut it for them. Does a 30 year term policy make sense then?

My feeling is you buy a term that covers the period where you need to protect your family against loss of your income. For example, if you get a 30 year term, you'll be 57 at the end of the coverage. If you have enough retirement savings set aside by then, you might not need it any longer. If your wife works, she would still have her own income plus your accumulated savings. If your wife doesn't work, you might be better off going 40 year.

 

[ponyo]

Originally posted by: MrChad
This is probably a stupid question, but how do you decide on the term length for life insurance? I am 27 years old and I have a 9 month old son. Obviously if I buy 20 year term life insurance now, he will be protected until adulthood, but if my wife and I have more kids (which we plan to), 20 years won't cut it for them. Does a 30 year term policy make sense then?

Yes, I would probably do 30 in your situation.

Term life insurance is only getting cheaper every year. As long as you're in good health, you can always pick up additional policy later on as your needs change. Buy a good base to start and then add later.

 

[MrChad]

Thanks guys, I appreciate the advice.

 

[SinfulWeeper]

No life insurance here. Personally I dont want it. I made it perfectly clear to my kids, my ex-wife, and my parents that if I were to pass away while any of them are still alive. I do not want to be buried under ground and become stink, decomposing, bloated worm food with the occasional cemetery party filled with sick minded teenagers pissing on every grave including mine.
No just goto the beach. Make a huge pallet/driftwood bonfire and throw my carcass in for free. Or get creative with explosives if your feeling rich.