Life insurance - Top things to know - Page 2

GarySpicuzza · #16 (**permalink**) 09-19-2008, 06:20 PM

You're welcome.

Shell · #17 (**permalink**) 10-17-2008, 11:12 PM

Life insurance is not really base on your preference but it all depends on your ability to pay the monthly premiums. Your preference might be to purchse a whole life insurance but you cannot afford it.
that's why I said it depends on your ability to pay your monthly premiums and it also depends on what your needs are.
If you are a new dad or just starting a new family, then the best I guess is a term life insurance which is a lot cheaper than the other types of permanent life insurance.

Just my 2 cents
Shell

fwoodfin · #18 (**permalink**) 12-13-2008, 07:06 AM

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fwoodfin
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nodebt99 · #19 (**permalink**) 12-16-2008, 03:13 PM

In my humble opinion, most people need $500,000 or more of life insurance.

Term Life Insurance is a great product - make sure you have convertibility ability.

And don't forget to buy "some" permanent UL or WL. There are actually some good UL's out there now.

MoneyTrev · #20 (**permalink**) 12-19-2008, 10:12 AM

Great tips. Loved "5. Keep your investing and insurance strictly separate. There are better places to invest - and without the high commissions of whole-life policies." I made the mistake of the other way around when I was young.

GarySpicuzza · #21 (**permalink**) 12-30-2008, 08:25 PM

MoneyTrev wrote:

Quote:

Great tips. Loved "5. Keep your investing and insurance strictly separate. There are better places to invest - and without the high commissions of whole-life policies." I made the mistake of the other way around when I was young.

Hmmmmmmm, maybe, maybe not.

Let's just suppose $$-money-$$ isn't an issue.

I'll use a standard male 35 non-smoker rate class and $500,000 initial death benefit.

The guideline single premium is $70,188.

So by paying the one-time maximum single premium would produce the following results.

@ age 50 the cash value would be $180,599.

@ age 60 the cash value would be $383,246.

@ age 65 the cash value would be $564,888 and the death benefit would be $677,865.

@ age 70 the cash value would be $1,235,081 and the death benefit would be $1,296,835.

@ age 90 the cash value would be $3,991,911 and the death benefit would be $4,191,507.

@ age 120 the cash value would be $44,876,739 and the death benefit would be $44,876,739.

Even if these PROJECTED numbers are wrong by 50% the insured person would still have a substantial amount of additional cash available to supplement retirement if the death benefit was no longer needed.

Also bear in mind I used the worst rate class for the life insurance. The cash would grow better if our 35 year old qualifies for a preferred rate class.

Hilroy · #22 (**permalink**) 01-26-2009, 07:08 PM

I love that post Gary, on many occasions people misunderstand life insurance an the benefits thereof. As an agent for a reputable insurance company I have found that many of the other insurance companies tend to push policies on clients because of the benefit to the agent and not the client. This is definitely the wrong way around. This is why it is extremely important for persons to properly research the company they buy insurance from.

Most persons purchase life insurance for death benefit purposes, it would therefore be wise for those persons to purchase policies from mutual life insurers as is evident in the current state of the economy and insurance industry. Mutual insurers seek to satisfy only policyholders and make decisions accordingly while stock traded insurers force management to satisfy stockholders.

As a response to a previous post, life insurance is a great way of investing. It just depends on the individuals unique situation and goals.

smithbell81 · #23 (**permalink**) 10-16-2011, 02:41 AM

thanks for sharing

runawaykinms · #24 (**permalink**) 12-24-2011, 07:55 PM

Quote:

9. Tell the truth.

There's no sense in shading the facts on your application to get a lower rate. Be assured that if a large claim is made, the insurance company will investigate before paying.

I definitely had to second this! If you let your agent know this information ahead of time, he or she may be able to find you a company that is more liberal on a particular condition.

For example, I once had a client who had a medical condition that they did not disclose to me. For that reason I put them with a company that is great and cheap for healthy clients. However, the information was discovered during the process and was placed on the client's MIB report. Now if that client every applies for insurance in the future it will be on the report. Not to mention, the price increased drastically. However, if I would have know that information ahead of time, I would have suggested a non-med term policy where this information would not have come out. This is another important reason to disclose the information to your agent.

Hopefully this helps a little bit,

Matt

stevenricherd · #25 (**permalink**) 12-29-2011, 06:48 AM

Apparently all the little tricks are legal, but I bet if I had the data, it would be shown that of all these kinds of policies Mutual sells through my credit union, an extremely low percentage ever pay out. I also bet the state department of insurance does not even gather or keep current statistics on this.

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