Reviewing life things in general -

Any recommendations for a term life company? Reviews, things to avoid, companies that are a pain to deal with etc? Replacing a policy I had at work

Any recommendations on a Term vs Whole? Mix of the 2?

Mid 30's, Healthy, Pretty good job & income but it is 1099 contract

I have a mixed policy w mass mutual. They are easy to deal with. 2/3 term 1/3 whole life. Im a minister and wife a teacher so im lolpoors.

Establish your need first by figuring out how long you'd need to replace income for (conservatively until the kids are out of the house, aggressively until you hit retirement). In most cases, factor in replacing 70% of your income for the period of time (accounting for the fact that you only receive 70% of your income due to taxes, deductions, etc). These two things will give you your life insurance need.

Talk with somebody who will actually consult with you and you don't feel is selling you. I like a hybrid approach to address immediate needs and also the risks in retirement.

Good luck!

Thanks!

Went through the Ramsey / Zander and got a stack of quotes, just wasn't sure if there were companies that were good / bad / avoid at all costs etc. Investment & retirements accounts are pretty healthy but for the cost of a20 yr term its hard to not have that layered in I think just in case.

Tend to do lots of driving in areas with frac sand and water haulers..... If you know then you know why I want it.

This is one of those things in life where the cheaper option is the better product. Go term life.

I subscribe to the Boglehead view on life insurance:

Quote:

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Need for life insurance - Majority opinion is that life insurance is an appropriate financial tool for a person who has someone else dependent on their income and/or survival; for example, the breadwinner of a family or a parent caring for a child. However, life insurance is not generally recommended for a person who has no one dependent on their income or survival; for example, a single person with no dependents, or a child.

When is term life insurance appropriate - Majority opinion is that term life insurance is appropriate for the vast majority of life insurance needs, including, but not limited to:

-A family with young children might choose to insure the breadwinner(s) for a duration until the children are in college or on their own, to provide for the income that would be lost if the breadwinner were to die while the children are dependent.

-A family might also choose to insure a non-working parent, reflecting the additional cost of childcare or reduced income from the other parent if the non-working parent were to die while the children are dependent.

-A breadwinner might be insured to bridge to retirement, pension benefits, or Social Security availability for a non-working spouse.

Note that some may choose to "ladder" term life insurance policies, purchasing (for example) both a 10 year and 20 year policy, to provide more insurance during the first 10 years and reduced coverage thereafter as needs change and the assets of the family increase.

When is permanent life insurance appropriate - Majority opinion is that permanent life insurance is appropriate for only a relatively small subset of the population. Such situations include, but are not limited to:

-Those who have children with special needs who (a) require an income supplement for the rest of their life and (b) are expected to live beyond their parent's death.

-Situations where liquid assets are needed when the insured dies. Examples could include those who will owe estate taxes at their death and do not want to liquidate assets to pay the taxes, or to fund a buy-sell agreement in a closely held business.

-Individuals with very high incomes who live in high-tax states may find that the after-tax return on permanent life insurance is attractive compared to alternative fixed income investments.

Note that the large commissions paid to agents generally make permanent life insurance a poor choice for short-term savings, due to surrender charges (on a universal life policy) or low early cash values (on a whole life policy). But over a longer time horizon, the pre-tax performance of permanent life insurance (excluding variable universal life) will tend to be similar to conservative fixed-income investments. Hence, savers with high income tax rates who have an asset allocation that includes fixed income may benefit from permanent life insurance.

Further note that equities held in a taxable brokerage account already have significant tax advantages, and therefore placing equities inside a variable universal life policy is generally not advisable.

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Read the book "What Woild the Rockefellers Do?" Then rethink whole life insurance.

The major benefit of whole life is the cash value that you can borrow money against, without affecting your credit score.

There are a lot of benefits to this approach, and you can start building generational wealth for your family now.

Also, I am an insurance broker and would be happy to work with you on some quotes. No pressure. No sales techniques, just honest good quotes from another Aggie.

My insurance guy wanted 6K a month for whole life. I still don't know why!!!

Because insurance guys like to sell insurance.

My uncle was an insurance salesman.

"Happy birthday! Hey, while I have you on the phone, …"

GenericAggie said:

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My insurance guy wanted 6K a month for whole life. I still don't know why!!!

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I've bought 3 different term life policies over the years. They get more expensive as you age. I'd recommend buying your first term life policy for More than you need now and with a longer, guaranteed annual premium.
So instead of a 20year, 500k policy, get a 30 year, one million policy. Will save you money and hassle later in life and give your beneficiaries more protection.

My first policy was thru select quote and the issuing company sold it to another and it has now changed names three times. Hopefully it's good if I die…
I'm more comfortable with the other policies I bought thru Texas Farm Bureau- Southern Farm Bureau Life iirc.
At least my heirs know who they are and the office is local.
I think the original was Zurich life and then chase life, then another, and now progressive life who I know nothing about.

TLDR maybe buy your term life policy from a well know company and not a brokerage.

Quote:

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So instead of a 20year, 500k policy, get a 30 year, one million policy.

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In my opinion, this is so spot on. Triple star if I could.

Mas89 said:

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I've bought 3 different term life policies over the years. They get more expensive as you age. I'd recommend buying your first term life policy for More than you need now and with a longer, guaranteed annual premium.
So instead of a 20year, 500k policy, get a 30 year, one million policy. Will save you money and hassle later in life and give your beneficiaries more protection.

My first policy was thru select quote and the issuing company sold it to another and it has now changed names three times. Hopefully it's good if I die…
I'm more comfortable with the other policies I bought thru Texas Farm Bureau- Southern Farm Bureau Life iirc.
At least my heirs know who they are and the office is local.
I think the original was Zurich life and then chase life, then another, and now progressive life who I know nothing about.

TLDR maybe buy your term life policy from a well know company and not a brokerage.

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Strongly agree with your buy more sooner approach. In addition to being much cheaper when you're younger, if a health issue crops up later (or you put on a lot of weight, etc.), you may not qualify for the best rates.

Strongly disagree with your brokerage vs. company approach. Companies do get bought and sold from time to time which can be a bit of a hassle, but to my knowledge, in all of American history, there has never been a failure to pay a valid claim on a life insurance policy. The first backstop is something called State Guaranty Associations, which effectively act like FDIC protection. They're funded by all insurance companies. The second backstop is that the industry has only had a couple of bankruptcies (Executive Life in the 80s/early 90s was one), and at the time, they reduced customer benefits of some annuity policies as I recall. The consumer blowback was so great, the overall industry overall vowed to never let it happen again, even if it was the weakest link of all the companies. There are also "claims paying ratings" (S&P, Moody's, etc.) which can be another method to help pick between companies.

So, bottom line, a broker who can find the lowest price is worth it - comparison of rates is essential, and picking a single company is by definition cheating yourself. Each company has different rates for different "classes" of risks, and a broker can sift through that for you, and get you the lowest price. Example => if a person smokes one cigar every month or two - some companies would call them a smoker and demand much higher rates, while some allow for up to one cigar a week with no penalty in rates.

Disclaimer: I'm not a broker or company person, but I have been a customer multiple times.

Life Insurance you're likely fine going with any established company that has the best rates.

Umbrella policy I'd advise going with someone rated highly.

I am local to the BCS area, and I'm with Southern Farm Bureau Life. If anyone has any questions, feel free to contact me. 979-820-2271.

Strongly agree with buy as much as you can as early as you can. As far as 20 year or 30 years, I like to break bigger amounts up and split them over a 20- or 30-year period. Multiple policies for a big amount gives you more flexibility as you get older and your need changes.

I had two, $500,000 term life insurance policies. The first policy was purchased due to my divorce, and the beneficiary was my Ex. The second, which I purchased several years later, was for my wife. Ironically, or maybe not so ironic, the Term Life Insurance companies can't understand why I didn't renew the policies when they expired 20 plus years later. I keep getting calls from time to time asking me to renew. Of course, the premium isn't $75 a month, but several hundred dollars per month.

10x income a good rule of thumb?

Nest Egg is healthy-ish as there are investments in business ventures at the moment that would be a pain if I did kick the bucket.

Trying to not kick the bucket is the goal, while spending as little as possible giving the wife and kid(s?) a means of "enjoying my legacy" if I do type of thing.

Strongly agree with buying more term than you think you need early on. But only if you have dependents who would need the help if you croaked.

Term to 80 is a good product to consider if you are unsure on your horizon of need. It at least gives you the ability vs a traditional 20 year term to keep making a decision if you are say in year 19 of the policy and get a horrible diagnosis.

Some cost for the option for sure vs a fixed term, but the rate adjusts upward over the policy.

2 million term life insurance policy through age of 65