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Author: WotPeed Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 17919  
Subject: Life insurnace costs Date: 9/19/2012 6:18 PM
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Greetings,

Are there any rules-of-thumb one can use for figuring out how much life insurance should cost? I've never had it except for a small policy through my work but my wife and I are expecting our first baby in a few months so I think it's time.

I'm 41, non-smoker. No major health issues, just high cholesterol that's handled with medication. I'm looking for a $1M 20 yr term life policy.

I have my auto and home owners insurance through Farmers. Good service the few times I've needed it for the cars but I think it's pretty pricey. I filled out an application with my agent and am waiting to hear how much the policy will cost.

Thx,

Wot
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Author: NoIDAtAll Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17670 of 17919
Subject: Re: Life insurnace costs Date: 9/20/2012 11:16 AM
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When I worked for them as an agent, Farmers did not have outstanding rates on life insurance. In fact, they had bought a life insurance company to use to market life products under Farmers' name. The life insurer also continued to sell products under its original name, and you often could get a better deal buying those products.

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Author: NoIDAtAll Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17671 of 17919
Subject: Re: Life insurnace costs Date: 9/20/2012 12:56 PM
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Farmers Life policies did have some features that I liked that I don't think all life insurers offer, at least in writing up front. One that comes to mind was a written statement that they would consider paying up to 1/2 of a policy's death benefit to sustain an insured's life.

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Author: EarlyToRise Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17674 of 17919
Subject: Re: Life insurnace costs Date: 9/21/2012 10:51 AM
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I'm 41, non-smoker. No major health issues, just high cholesterol that's handled with medication. I'm looking for a $1M 20 yr term life policy.

LI is much more a commodity. You only need it at most once! Definitely get a well-rated company, but otherwise (in my mind) it's 100% on price.

I have similar stats to yours above. When I was shopping, I was looking for $0.40-$0.60 annual premium per $1000 of coverage. So, for your $1M coverage, that would be $400-$600 per year in premiums.

You mention "just high cholesterol"; even though it's handled, you are unlikely to be underwritten at the best rate, but shop pretty hard on this one. It's a $10K+ investment over the 20 years.

ETR

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Author: WotPeed Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17675 of 17919
Subject: Re: Life insurnace costs Date: 9/21/2012 12:13 PM
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Thanks for the replies.

When I was shopping, I was looking for $0.40-$0.60 annual premium per $1000 of coverage. So, for your $1M coverage, that would be $400-$600 per year in premiums.

Really? That's waaay lower than the quote I just got from my Farmer's agent ($200/mn). Honestly I didn't think this quote was outrageous, but if I can really cut that in half or more by shopping around then I'll definitely do it.

You mention "just high cholesterol"; even though it's handled, you are unlikely to be underwritten at the best rate, but shop pretty hard on this one.

Yeah, I'm assuming I'll get the "average health" rate. I'm in ok shape, not overweight, but the cholesterol is enough to get me out of the best rates.

When it comes to shopping, are those online quote systems worth the hassle? I've always assumed those forms generate quotes that sound great, but by the time you get around to filling out the real application and going through the blood work, etc. you find that you're paying quite a bit more than the initial quote. Is there a better way?

Thanks,

Wot

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Author: EarlyToRise Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17678 of 17919
Subject: Re: Life insurnace costs Date: 9/26/2012 10:58 PM
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When it comes to shopping, are those online quote systems worth the hassle?

They were for me. I didn't fee l baited-and-switched at all, but maybe I got lucky.

Zander is famously recommended by Dave Ramsey; your mileage may vary, but I had a friend who had a good experience with them: https://www.zanderins.com/term/instantquote.aspx

Geico will give you a quote through a partner: http://www.geico.com/getaquote/life/

I personally used http://www.selectquote.com/ and pretty quickly had 3 seemingly legitimate quotes from reputable insurance companies. I went through with underwriting and ended up paying exactly what the upfront quote predicted.

As I mentioned, maybe I was crazy lucky. Good luck!
ETR

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Author: kpshah0 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17683 of 17919
Subject: Re: Life insurnace costs Date: 11/1/2012 4:01 PM
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Try ING life insurance, I just got one for my wife for 20 years, they are well rated and very competative.

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Author: WotPeed Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 17684 of 17919
Subject: Re: Life insurnace costs Date: 11/2/2012 11:20 AM
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I did consider ING. In the end I talked to SelectQuote and they hooked me up with Transamerica. They weren't the absolute cheapest, but only a few bucks more per month than the cheapest and it gives my wife some peace of mind knowing that they're a reputable company should the worst happen.

Best of all, they were WAAAAAY cheaper than the original quote I got from my Farmers agent. About 60% cheaper. Tough to see how Farmers can compete with prices like that.

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