Life Insurance Questions - Plainfield,IL

You need a term life insurance policy. 20 years is usually good. You need 10 times your annual income. My husband and I use Zander insurance. They work with a lot of different companies so they can get you the best rate. I have a 500,000.00 policy and it only cost me 150.00 per year! Stay away from whole life and return of premium policies.

Lisa

Go with term insurance! Many will push whole life because it's better for THEIR pockets...... But the "cash value" it builds doesn't mean much because you have to "borrow" it....? It doesn't make sense to have to borrow your own money!

Make sure you get enough to cover outstanding debt, loans, and the cost of a funeral. Some in addition to that would be best.

We've been happy with Primerica Financial Services. They have been knowledgeable, available for questions, and NOT pushy.......

great question, i'm going to check into this too.

Are you looking for term insurance or permanent insurance? At your age, it would probably be good to get a mixture of both. You're young enough where permanent insurance wouldn't be extremely expensive and you could lock in a long term with a term policy. I'd ask about preferred rates. If you are a nonsmoker in good shape, you can get a significantly lower rate. Some tests may be required to get that. I'd look into a guaranteed insurability option. This option will allow you to purchase additional insurance at certain points in your life without having to prove insurability. If getting term, ask about how the renewal process works when your term is up. Is it simply a higher rate and your term resets or do you need to completely requalify? For permanent insurance, ask about only paying for a certain number of years. For example, my life policy on my son is a 15 pay life, so I won't have to pay anything else after that 15 years. The premiums are higher than a traditional whole life policy, but you don't have to pay it forever. Also look into getting a rider added for your children. That is usually inexpensive and you never know what might happen. Find an insurance agent that you trust and ask lots of questions. The right mix of insurance is different for everyone based on their personal situation. You might call your car or home/renters insurance carrier and talk to them. They might offer discounts on your other insurance and that can help offset the cost. Good luck and great job looking out for your family with life insurance. There are so many families who really need this protection, but don't think to get it until it is too late.

Waaayyy too much ground to cover in a Mampedia post. =)

Is it just you or is there a dad in the picture? That would change the kind of coverage you might want.

Some things to consider:

1.) Make sure the policy covers your current debts and your funeral costs and medical costs (in case you do not go suddenly -- gruesome yes but you are doing a very loving thing by tackling this issue now instead of leaving loose ends.)

2.) Your children will be eligible for social security survivors benefits. Check your stmt from the IRS and find out what this amount will be. And then use your policy to add an amount you think will be sufficient to see them thru until they are 18.

3.) If you can swing it after covering 1 & 2, make the policy big enough to give them a college fund.

One last thought for you...Dying before our children are adults is actually a much lower risk than a parent becoming disabled and unable to work and support their children. Consider getting DI (disability insurance).

There is much to know about life insurance. I suggest that you want to do some research about the various forms and benefits. When my children were minors I had a term life insurance so that if I were to die, the children would be taken care of. I'm no longer insured for that reason. The type of insurance you want is determined by your goals.

I've found that some salesmen are good about explaining these differences. It's my philosophy to never buy from a high pressure salesman. I start the conversation by telling them I'm just looking for information at this point. Then, only if I trust them, do I buy. I may talk to 2 or 3 before I make a decision.

You want & need term insurance. Do not buy a whole life policy. It is not a good "investment."
If you work you should be sure to max out on what they offer at your job and/or your husband's because it's the cheapest there.

With insurance, I always start at 3rd party sites that are non-biased and offer quotes from multiple sources. That way they are trying to find the best policy for you. i used www.mwaquicklife.net to find my life insurance policy. They even had an agent call me back. Learned a lot.

It is all about trusting the person you're talking to which, I admit, is a very difficult thing to do when it comes to this subject. That being said, I found someone that I do trust to do the right thing for me (not him) and his name is Shawn Russell with SagePoint Financial. He can be reached at ###-###-####. At least give him a call and judge for yourself. Tell him S. sent you.

You should go with a term policy and you really should check out Zander Insurance at www.zanderinsurance.com. I think someone else mentioned them in a previous post as well.

Ask if it is term coverage or if the policy accumulates value. If it is term, ask at what age the policy terminates. Some policies are cheaper because they are only intended to cover you while you have dependents, in which case, it will likely term before you die but it will provide protection while your children are young. If you want a term policy that continues with you for funeral expenses, etc, look for something that doesn't term until like age 120. (Seriously.) Ask if it is has a level premium. Sometimes the premium goes up when you can least afford it - as you age. Some universal life products say they have a flexible premium as the premium fund is invested and the investments may go up but in actuality as the mortality charges go up (as you age) the market increases may not be enough to support the premium due. Ask the agent for illustrations based on reasonable increase rates (like 3 to 5%). If you are working with an agent, he/she should be pointing these things out to you. Ask the agent the tax status of the benefit. (i.e will your girls have to pay taxes on the face amount) If the benefit amount of the policy is substantial, you might want to consider setting it up in an irrevocable trust. Good luck and good for you looking out for your children.

My husband used to be a financial planner and deals with life insurance all the time. Let me know if you have any specific questions and I am sure we can help!

I don't have the answers - but call a good friend of mine who is a rep. - she can best answer your questions.

Her name is Tammy Moore - phone number is ###-###-####. She knows her field and would know the answers, plus what ? you aren't asking.

M.

I have great life insurance that also acts as a savings plan that builds cash value. Do not get term life; that is for the elderly and does not build cash value. I worked with an excellent broker who found the best plan for me. Her is her information as I know she will answer all of you questions and the consulting is free.

Mia Rosal
###-###-####

Sandy:

Give me a call on Monday and I will go over the types (Term vs. Whole vs. Universal), I will explain the benefits, what the benefits are of each for your situation. We can run it through a life insurance quote engine. What this does is compares the top A rated companies and shows you the different premiums.

Why not find out what your options are and not pay more then you should. I will make sure that you have a good understanding of the life plans.

My number is ###-###-####. It would be a pleasure help you understand the life plans. Please remind me to also explain the "return of premium" option, you get all your money back on the Term products!!!!

I hope to hear from you soon.

S. Harrington

There are several types of life insurance: Cash value types and term. The MOST IMPORTANT thing to do is to get the amount of coverage you qualify for. At your age, it'll be about 15x your annual income, because the idea is that the money would be invested so that it would produce a return that would be equal to your income.

Cash value insurance (Whole Life, Variable, etc.) are double-duty policies. They are significantly more expensive because there is NO time limit to them. As long as you can pay for them, you will have the insurance until you die, even if that day is 65 years from now. There is an investment piece built into the structure of the policy which builds "cash value" in the policy - part is your payments, part is dividends from the company's investments. Some policies allow you to borrow this money, which can be helpful in case of family emergencies, etc. Some have payment plans where you can pay for 10 or 20 years and then never pay again, but the insurance stays in place till you die. These types of insurance tend to augment retirement because you can actually SPEND your investments, retirement funds, etc. and then leave the insurance money to the kids - it makes retirement money go farther. But again, it is 5-10 times more than Term.

Term insurance is inexpensive, because you only have it for a "term" of time - usually 20-30 years, and then it is gone. MOST people DON'T die young, but enough do that insurance is a must-have for the sake of your family. (One of my best friends' husband died when their son was 3. He had NO insurance and if it weren't for close family, thier life would have been SUPER hard.)

The best thing you can do is get the MAXIMUM amount of insurance you can - you CANNOT be overinsured. If your budget only allows term at this point in your life, go with a strong company (Mass Mutual, MetLife, etc.) and ask if their term insurance can be converted to Cash Value at a later time. If your budget can afford a mix of term and cash value - GREAT. If you can get all Cash Value - fantastic. But the AMOUNT of coverage is most important when you have the kiddos. There is no reason to buy only cash value if it will only get you 100K of coverage, when term will get you 1million.

Your planning professional should help you understand, but you may have to ask. And if they don't answer your questions, private message me and I'll see if I can get you a referral in your area to someone who will.