Need new Term Life Insurance. Any Independent Agents on CP?

[chris]

If so, send me a PM about Term insurance.

Any insurance companies you like?

I had Jackson National for the past 15 years.

Never understood the value of whole life.

Thanks

[Jenson71]

Isn't the value of whole life insurance that the funds can be invested into stocks?

[Gonzo]

Speaking of which, lumpy and I are looking for health insurance. PM me if you can help.
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[Ming the Merciless]

If you are young you can get 'whole life' fairly cheap, and it can never be taken away...Also at some point most of them become 'free' meaning you no longer have to pay a monthly fee.

Also, you can cash out of the cash value of the policies or take loans against them and pay it back if you need to.

[xbarretx]

My wife works for Country Financial and offers Life Insurance.

[Saul Good]

I just sold my agency last week. I'll give you some advice, though.

Don't buy anything other than term life. Whole life is a ripoff. Universal life is a ripoff. Variable life is a ripoff. They all pay outstanding commission, though. Lots of agents want to sell it for that reason. There are a few compelling arguments that can be made for the benefits of these products. None of them come close to justifying the price. I would not sell them, and I will not sell them.

Buy a 30 year level term policy. No single carrier is best for everyone. Find someone who shops all of them. Zander has become very popular by partnering with Dave Ramsey. They really do a good job of searching a ton of carriers for the best fit for you. They require a TON of paperwork, though. If you are serious about making a sound long-term decision, it's worth the hassle.

Feel free to ask me whatever. This topic is right in my wheelhouse. (Also, feel free to ask me about being 6'5, 225 and running a 4.3 40 while having a 44" vertical and a 10" dong while posting on the internet.)

[Jenson71]

Originally Posted by Saul Good

I just sold my agency last week. I'll give you some advice, though.

Don't buy anything other than term life. Whole life is a ripoff. Universal life is a ripoff. Variable life is a ripoff. They all pay outstanding commission, though. Lots of agents want to sell it for that reason. There are a few compelling arguments that can be made for the benefits of these products. None of them come close to justifying the price. I would not sell them, and I will not sell them.

very interesting

[Saul Good]

I'm a big proponent of Dave Ramsey. He catches a lot of shit from people because he speaks in absolutes about debt. Without touching on that part of his message, he calls whole life insurance the "payday loan" of the middle class. He's dead on there.

Poor people get ripped off by the lottery, rent-to-own, payday loans, and buy here, pay here car dealerships.

The middle class get ripped off by things like whole life insurance, extended warranties, leasing cars, and sub-prime loans.

[Jenson71]

Originally Posted by Saul Good

I'm a big proponent of Dave Ramsey. He catches a lot of shit from people because he speaks in absolutes about debt. Without touching on that part of his message, he calls whole life insurance the "payday loan" of the middle class. He's dead on there.

Poor people get ripped off by the lottery, rent-to-own, payday loans, and buy here, pay here car dealerships.

The middle class get ripped off by things like whole life insurance, extended warranties, leasing cars, and sub-prime loans.

Is whole life still a rip off for the young, and can get it fairly cheap?

[Saul Good]

Originally Posted by Literature

Is whole life still a rip off for the young, and can get it fairly cheap?

Yes. Its a huge ripoff, even for the young.

I was meeting with a large company earlier today. This was group insurance, and it was term coverage with AD&D (basically, that means it pays double if you die in an accident as opposed to natural causes).
Group insurance is a good way to buy insurance without being forced to go through a health screening or answer medical questions. For that reason, it isn't the cheapest way to get coverage. Its still pretty reasonable, though.

A 35-39 year old could get $150,000 of coverage for $24 per month regardless of health issues. $10,000 would be $1.60 per month. These are okay rates for term coverage. They aren't great, though. Whole life can literally cost 10x that or more.

Gerber policies and such are the worst. They are something like $8 to $25 a month. Term insurance for children is almost free. You can get $10,000 on all of your kids for around $2.00 a month. That's not "per child". If you have 6 kids or 1 kid, it's the same price in many cases. Why? Because kids don't die. It costs about $1.00 for the administrative overhead, $0.50 for commission, and $0.10 to actually insure each kid. Its so cheap that companies literally don't care how many kids you have. (Sometimes, the benefit is reduced until the kid reaches 6 months of age. If a kid lives to age 6 months, there is about a 99.99% chance it lives to adulthood in the US.)

[Jenson71]

I've heard about the Gerber insurance stuff, and it seems pretty clear that it's pretty nonsensical (the argument as I understand it, just being that one need not get insurance unless one have dependents), even if it can be handed off for a lower price. Better off taking the money and investing it in something else?

So if a parent has a cheap policy on a young adult child that they expect to pass off to the child after college graduation, it might be due for a review of policy?

[CrazyHorse]

Originally Posted by Saul Good

I just sold my agency last week. I'll give you some advice, though.

Don't buy anything other than term life. Whole life is a ripoff. Universal life is a ripoff. Variable life is a ripoff. They all pay outstanding commission, though. Lots of agents want to sell it for that reason. There are a few compelling arguments that can be made for the benefits of these products. None of them come close to justifying the price. I would not sell them, and I will not sell them.

Buy a 30 year level term policy. No single carrier is best for everyone. Find someone who shops all of them. Zander has become very popular by partnering with Dave Ramsey. They really do a good job of searching a ton of carriers for the best fit for you. They require a TON of paperwork, though. If you are serious about making a sound long-term decision, it's worth the hassle.

Feel free to ask me whatever. This topic is right in my wheelhouse. (Also, feel free to ask me about being 6'5, 225 and running a 4.3 40 while having a 44" vertical and a 10" dong while posting on the internet.)

I second this. If you do have a whole life policy, you should take the same money and buy term, then invest the rest yourself. Its a way to free up money for your retirement. It been many years since I was in the business. But I used to do just this with many whole life policies. Even if you throw darts, blindfolded at mutual funds for your investments, you will out perform your whole life policy 10 fold.

[Saul Good]

Absolutely. An 18 year old in good health should be able to buy $100,000 of coverage for a few bucks a month. (Less than $10). That said, most people that age have very little need for that much coverage. If you aren't married and don't have kids, $20k is enough to bury you. There really isn't a need for more than that.

Its one of the few products that gets cheaper over time. People live longer and longer as medicine advances.

[go bo]

Originally Posted by Saul Good

Absolutely. An 18 year old in good health should be able to buy $100,000 of coverage for a few bucks a month. (Less than $10). That said, most people that age have very little need for that much coverage. If you aren't married and don't have kids, $20k is enough to bury you. There really isn't a need for more than that.

Its one of the few products that gets cheaper over time. People live longer and longer as medicine advances.

um, what if you're just a little older than that?

[Saul Good]

Originally Posted by go bowe

um, what if you're just a little older than that?

I referenced an 18 y\o because he specifically asked about people who are still on their parents' plan coming up on graduation.

For people who are in their fifties, sixties, or older, hopefully you already have life insurance. Otherwise, its going to be extremely expensive with good reason. Buying it at that age is like buying a warranty for a car with 150,000 miles on it.

The good news is that, if you've made it into your sixties, you should be close to self-insured. By that, I mean your kids should no longer be financially dependent upon you, your mortgage should be nearing completion, you hopefully have some savings, and you aren't too far from Social Security age.

I look at insurance as one piece of the larger financial picture. Its really only needed until your financial plan has come together. If you buy a house when you are 30ish and don't pull out equity (which you shouldn't do), you have a paid off house by the time you are 60ish or sooner. If you have 30 years worth of savings and investments to fall back on in addition to having a paid-off home, you probably don't need life insurance any longer. When your number is up, the funeral expenses aren't going to be a financial burden, and your income won't really be missed.

If you have made it into your fifties or later without following a plan, you can still get life insurance if you're in good health. Term will be expensive, but whole will be completely impossible to afford. ($100k of term for a 53 year old is around $40-$50 per month. By the time you hit 60, its double that if you can even get it).