My TERM life insurance policy

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Sirjames
Posts: 44
Joined: Tue Sep 12, 2017 1:53 pm

My TERM life insurance policy

Post by Sirjames » Thu Jun 20, 2019 6:44 pm

Just trying to gauge if I got a good deal. I picked my policies from term4sale. I went with a laddered plan, so that policies will fall off as I become more financially independent/self-insured. I'm 32, non-smoker, no medical conditions or major risk factors. I have a family and am a high-income professional, so I'm doing this for them. I think it's a pretty good deal, but just curious to how it compares to others' plans. Thanks!

10 years-- $1 million-- $235 annual premium (Minnesota)
15 years-- $1 million-- $299 annual premium (Lincoln)
20 years-- $2 million-- $716 annual premium (Lincoln)

Total annual premium for first 10 years= $1250
Last edited by Sirjames on Thu Jun 20, 2019 7:28 pm, edited 1 time in total.
Patience is the ultimate hedge

surfstar
Posts: 1654
Joined: Fri Sep 13, 2013 12:17 pm
Location: Santa Barbara, CA

Re: My TERM life insurance policy

Post by surfstar » Thu Jun 20, 2019 7:06 pm

20 year term, $500,000
$495/yr, purchased at 36, great health

Had to list rock climbing and scuba diving, though. :D Those required extra questions. I don't think snowboarding made a difference.

bltn
Posts: 446
Joined: Mon Feb 20, 2017 9:32 pm

Re: My TERM life insurance policy

Post by bltn » Thu Jun 20, 2019 8:22 pm

Sirjames wrote:
Thu Jun 20, 2019 6:44 pm
Just trying to gauge if I got a good deal. I picked my policies from term4sale. I went with a laddered plan, so that policies will fall off as I become more financially independent/self-insured. I'm 32, non-smoker, no medical conditions or major risk factors. I have a family and am a high-income professional, so I'm doing this for them. I think it's a pretty good deal, but just curious to how it compares to others' plans. Thanks!

10 years-- $1 million-- $235 annual premium (Minnesota)
15 years-- $1 million-- $299 annual premium (Lincoln)
20 years-- $2 million-- $716 annual premium (Lincoln)

Total annual premium for first 10 years= $1250
Those look to be a fine set of rates on policies from solid companies. With conscientious saving, and investing in index funds, you should be self insured in 20 years. After that the continued accumulation is just for the icing on your cake. Which is important.
Best of luck.

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Stinky
Posts: 1248
Joined: Mon Jun 12, 2017 11:38 am
Location: Sweet Home Alabama

Re: My TERM life insurance policy

Post by Stinky » Thu Jun 20, 2019 8:39 pm

Sirjames wrote:
Thu Jun 20, 2019 6:44 pm
Just trying to gauge if I got a good deal. I picked my policies from term4sale. I went with a laddered plan, so that policies will fall off as I become more financially independent/self-insured. I'm 32, non-smoker, no medical conditions or major risk factors. I have a family and am a high-income professional, so I'm doing this for them. I think it's a pretty good deal, but just curious to how it compares to others' plans. Thanks!

10 years-- $1 million-- $235 annual premium (Minnesota)
15 years-- $1 million-- $299 annual premium (Lincoln)
20 years-- $2 million-- $716 annual premium (Lincoln)

Total annual premium for first 10 years= $1250
I think you did just fine.

I went to my favorite quote site, zanderins.com. Presuming that you’re preferred plus (best rate class), you might have been able to save about $20 per year for all policies combined with AIG. That’s trivial in the scheme of things.

You’re paying a very fair rate with good insurers.
It's a GREAT day to be alive - Travis Tritt

FoolStreet
Posts: 774
Joined: Fri Sep 07, 2012 12:18 am

Re: My TERM life insurance policy

Post by FoolStreet » Thu Jun 20, 2019 10:39 pm

Sirjames wrote:
Thu Jun 20, 2019 6:44 pm
Just trying to gauge if I got a good deal. I picked my policies from term4sale. I went with a laddered plan, so that policies will fall off as I become more financially independent/self-insured. I'm 32, non-smoker, no medical conditions or major risk factors. I have a family and am a high-income professional, so I'm doing this for them. I think it's a pretty good deal, but just curious to how it compares to others' plans. Thanks!

10 years-- $1 million-- $235 annual premium (Minnesota)
15 years-- $1 million-- $299 annual premium (Lincoln)
20 years-- $2 million-- $716 annual premium (Lincoln)

Total annual premium for first 10 years= $1250
This is probably obvious, but you describe yourself as a "professional". Does your work offer insurance and can you use that? In my experience, work will offer 1-2x salary. Then you can order extra up to 3 or 4x during open enrollment. And if you want more then you can buy more as long as you pass the physical.

Maybe you are just not a wage slave professional.

rj342
Posts: 317
Joined: Tue Apr 30, 2019 12:21 pm

Re: My TERM life insurance policy

Post by rj342 » Thu Jun 20, 2019 11:12 pm

FoolStreet wrote:
Thu Jun 20, 2019 10:39 pm
Sirjames wrote:
Thu Jun 20, 2019 6:44 pm
Just trying to gauge if I got a good deal. I picked my policies from term4sale. I went with a laddered plan, so that policies will fall off as I become more financially independent/self-insured. I'm 32, non-smoker, no medical conditions or major risk factors. I have a family and am a high-income professional, so I'm doing this for them. I think it's a pretty good deal, but just curious to how it compares to others' plans. Thanks!

10 years-- $1 million-- $235 annual premium (Minnesota)
15 years-- $1 million-- $299 annual premium (Lincoln)
20 years-- $2 million-- $716 annual premium (Lincoln)

Total annual premium for first 10 years= $1250
This is probably obvious, but you describe yourself as a "professional". Does your work offer insurance and can you use that? In my experience, work will offer 1-2x salary. Then you can order extra up to 3 or 4x during open enrollment. And if you want more then you can buy more as long as you pass the physical.

Maybe you are just not a wage slave professional.
I have life thru work AND an independent term policy. I felt no point in risking a gap in coverage in case of unemployment (have never heard of COBRA covering anything other than health ins).

FoolStreet
Posts: 774
Joined: Fri Sep 07, 2012 12:18 am

Re: My TERM life insurance policy

Post by FoolStreet » Thu Jun 20, 2019 11:55 pm

rj342 wrote:
Thu Jun 20, 2019 11:12 pm
FoolStreet wrote:
Thu Jun 20, 2019 10:39 pm
Sirjames wrote:
Thu Jun 20, 2019 6:44 pm
Just trying to gauge if I got a good deal. I picked my policies from term4sale. I went with a laddered plan, so that policies will fall off as I become more financially independent/self-insured. I'm 32, non-smoker, no medical conditions or major risk factors. I have a family and am a high-income professional, so I'm doing this for them. I think it's a pretty good deal, but just curious to how it compares to others' plans. Thanks!

10 years-- $1 million-- $235 annual premium (Minnesota)
15 years-- $1 million-- $299 annual premium (Lincoln)
20 years-- $2 million-- $716 annual premium (Lincoln)

Total annual premium for first 10 years= $1250
This is probably obvious, but you describe yourself as a "professional". Does your work offer insurance and can you use that? In my experience, work will offer 1-2x salary. Then you can order extra up to 3 or 4x during open enrollment. And if you want more then you can buy more as long as you pass the physical.

Maybe you are just not a wage slave professional.
I have life thru work AND an independent term policy. I felt no point in risking a gap in coverage in case of unemployment (have never heard of COBRA covering anything other than health ins).
Good point. That makes sense. I vaguely remember having the option to keep my life insurance but would pay out of pocket not through payroll deductions, when switching jobs. I guess I didn't think about the time period implications(10v 15 v 20 year). I always thought insurance is insurance and I'll pay whatever the work plan charges.

It looks like insurance rates go up every 5 years of age. Based on that your strategy seems sound since you lock in the same rate for 10, 15, 20 years regardless of your age.

In my case it's like an autorenewing 5yr term rate.

Topic Author
Sirjames
Posts: 44
Joined: Tue Sep 12, 2017 1:53 pm

Re: My TERM life insurance policy

Post by Sirjames » Fri Jun 21, 2019 5:07 am

Thank you all for your input. I feel reassured :sharebeer
Patience is the ultimate hedge

daheld
Posts: 533
Joined: Wed Sep 13, 2017 8:14 am
Location: STL

Re: My TERM life insurance policy

Post by daheld » Fri Jun 21, 2019 7:10 am

I'm 33, no medical conditions, non-smoker. I bought a 20 year term $700,000 policy last year for around $300/year. I think you did fine.

DaftInvestor
Posts: 4607
Joined: Wed Feb 19, 2014 10:11 am

Re: My TERM life insurance policy

Post by DaftInvestor » Fri Jun 21, 2019 3:57 pm

rj342 wrote:
Thu Jun 20, 2019 11:12 pm
FoolStreet wrote:
Thu Jun 20, 2019 10:39 pm
Sirjames wrote:
Thu Jun 20, 2019 6:44 pm
Just trying to gauge if I got a good deal. I picked my policies from term4sale. I went with a laddered plan, so that policies will fall off as I become more financially independent/self-insured. I'm 32, non-smoker, no medical conditions or major risk factors. I have a family and am a high-income professional, so I'm doing this for them. I think it's a pretty good deal, but just curious to how it compares to others' plans. Thanks!

10 years-- $1 million-- $235 annual premium (Minnesota)
15 years-- $1 million-- $299 annual premium (Lincoln)
20 years-- $2 million-- $716 annual premium (Lincoln)

Total annual premium for first 10 years= $1250
This is probably obvious, but you describe yourself as a "professional". Does your work offer insurance and can you use that? In my experience, work will offer 1-2x salary. Then you can order extra up to 3 or 4x during open enrollment. And if you want more then you can buy more as long as you pass the physical.

Maybe you are just not a wage slave professional.
I have life thru work AND an independent term policy. I felt no point in risking a gap in coverage in case of unemployment (have never heard of COBRA covering anything other than health ins).
I agree with rj342 - I never buy extra insurance through my employer - I look at what they offer for free (typically 1 to 2x salary) as "extra" on top of what I buy independently. If I choose to change jobs (or they choose to show me the door) I may be without life insurance for a period of time - and the new employer may not offer the option to buy. I have also found better deals independently anyway (versus using employer based options).

OP: Your rates l(and plan) look great to me.

rj342
Posts: 317
Joined: Tue Apr 30, 2019 12:21 pm

Re: My TERM life insurance policy

Post by rj342 » Sat Jun 22, 2019 12:24 pm

DaftInvestor wrote:
Fri Jun 21, 2019 3:57 pm
rj342 wrote:
Thu Jun 20, 2019 11:12 pm
FoolStreet wrote:
Thu Jun 20, 2019 10:39 pm
Sirjames wrote:
Thu Jun 20, 2019 6:44 pm
Just trying to gauge if I got a good deal. I picked my policies from term4sale. I went with a laddered plan, so that policies will fall off as I become more financially independent/self-insured. I'm 32, non-smoker, no medical conditions or major risk factors. I have a family and am a high-income professional, so I'm doing this for them. I think it's a pretty good deal, but just curious to how it compares to others' plans. Thanks!

10 years-- $1 million-- $235 annual premium (Minnesota)
15 years-- $1 million-- $299 annual premium (Lincoln)
20 years-- $2 million-- $716 annual premium (Lincoln)

Total annual premium for first 10 years= $1250
This is probably obvious, but you describe yourself as a "professional". Does your work offer insurance and can you use that? In my experience, work will offer 1-2x salary. Then you can order extra up to 3 or 4x during open enrollment. And if you want more then you can buy more as long as you pass the physical.

Maybe you are just not a wage slave professional.
I have life thru work AND an independent term policy. I felt no point in risking a gap in coverage in case of unemployment (have never heard of COBRA covering anything other than health ins).
I agree with rj342 - I never buy extra insurance through my employer - I look at what they offer for free (typically 1 to 2x salary) as "extra" on top of what I buy independently. If I choose to change jobs (or they choose to show me the door) I may be without life insurance for a period of time - and the new employer may not offer the option to buy. I have also found better deals independently anyway (versus using employer based options).

OP: Your rates l(and plan) look great to me.
I do have a bit extra thru work, where still short of requiring the medical exam. I have a CPAP and apnea hurts rates even if pretty healthy otherwise.

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