OT: Term Life Insurance

yesrutgers01

Hall of Famer
Gold Member
Nov 9, 2008
26,302
24,573
113
I can do the research but quite honestly, I start out doing so and they all pretty much look the same. Wife and I both in our 50's very healthy but neither have life insurance. We have other investments so thinking of term life just as a security blanket. Any suggestions on who to look at and what to look for as positives and negatives when comparing?

Thanks

BTW- meant to put the OT in title but can't find how to edit it to do so after I posted
 
  • Like
Reactions: beaced

phs73rc77gsm83

All Conference
Gold Member
Aug 11, 2011
2,531
3,099
113
In my opinion, term is the only way to go for most people with regard to life insurance. “Buy term and invest the rest” is an often repeated guidance that I agree with. My wife and I dropped our term in our late ‘50s with the mortgage paid off and kids were on their own at Rutgers. I think term is best used to replace a spouses income if one of you pass. With your son on his own you don’t need to really consider that. If you have a large mortgage I might keep it because it is inexpensive and provides a level of security. Just my two cents.

Also, we used State Farm and I believe they were competitive. With you two in good health, it should be inexpensive. Stay away from whole life and other combination products that are expensive and often have many pitfalls for most situations.
 

Doctor Worm

Hall of Famer
Gold Member
Feb 8, 2002
24,212
15,452
113
In my opinion, term is the only way to go for most people with regard to life insurance. “Buy term and invest the rest” is an often repeated guidance that I agree with. My wife and I dropped our term in our late ‘50s with the mortgage paid off and kids were on their own at Rutgers. I think term is best used to replace a spouses income if one of you pass. With your son on his own you don’t need to really consider that. If you have a large mortgage I might keep it because it is inexpensive and provides a level of security. Just my two cents.
I think the first bolded sentence is correct, but it doesn't support the second. If your death during your earning years would result in financial hardship to your wife, then you need term insurance to protect your income. And vice versa.

Term insurance is pretty much a commodity. I would find a website that offers quotes from multiple high-rated companies, and pick the cheapest. This process may result in you and your wife buying from different companies.
 

yesrutgers01

Hall of Famer
Gold Member
Nov 9, 2008
26,302
24,573
113
In my opinion, term is the only way to go for most people with regard to life insurance. “Buy term and invest the rest” is an often repeated guidance that I agree with. My wife and I dropped our term in our late ‘50s with the mortgage paid off and kids were on their own at Rutgers. I think term is best used to replace a spouses income if one of you pass. With your son on his own you don’t need to really consider that. If you have a large mortgage I might keep it because it is inexpensive and provides a level of security. Just my two cents.
All the kids are out of the house. just sold our house and renting for now but expecting a fairly large mortgage again in a couple of years. Both of us expect to work another 10-15 years with substantial income. Figuring that term life is a fairly inexpensive way for a cash safety net in case one of us passes unexpected.
 

patk89

All American
Jul 25, 2001
5,879
1,831
113
I have a relatively large policy because I'm the sole breadwinner. If you have good health and nothing bad in your family history, it is pretty affordable, even in your 50s. MetLife has an on-line application process. I had to go and get blood work done (free) and they then provided a quote. Obviously, the shorter the term, the cheaper it is. I wanted to be covered until I was 65 so got a 20 year policy in my mid 40s. Annual fixed premium. My wife does not have a policy. If I go missing, it was my wife!
 

Knight Shift

Legend
May 19, 2011
60,858
53,676
113
Jersey Shore
All the kids are out of the house. just sold our house and renting for now but expecting a fairly large mortgage again in a couple of years. Both of us expect to work another 10-15 years with substantial income. Figuring that term life is a fairly inexpensive way for a cash safety net in case one of us passes unexpected.
Don't want to get too personal, but why a fairly large mortgage and working another 10-15 years? You like working that much? As we know, everybody is different--but we are scaling down and prepping for a simpler, less expensive life of becoming hunters, gatherers and growers--living off the land--well, not exactly, but we looking at ways to reduce our spend now that the kids are in (and soon in) college and will be out of the house soon.
 
  • Like
Reactions: Section124

yesrutgers01

Hall of Famer
Gold Member
Nov 9, 2008
26,302
24,573
113
I have a relatively large policy because I'm the sole breadwinner. If you have good health and nothing bad in your family history, it is pretty affordable, even in your 50s. MetLife has an on-line application process. I had to go and get blood work done (free) and they then provided a quote. Obviously, the shorter the term, the cheaper it is. I wanted to be covered until I was 65 so got a 20 year policy in my mid 40s. Annual fixed premium. My wife does not have a policy. If I go missing, it was my wife!
Would most likely go with 20-25 year term. Would also be a pretty substantial amount. Most likely higher on mine as she has backed off work a bit since we started selling the house and now COVID plus my earnings have us in a very comfortable lifestyle on its own. I will take a look at MetLife

What are some of the things to compare between different providers? Any companies that are notorious slow payers or any other problems.
 

patk89

All American
Jul 25, 2001
5,879
1,831
113
I agree with Doctor Worm that it is basically a commodity but there is a very slight risk the provider goes bankrupt over the next 20-25 years so I would favor one of the more well know (higher rated) companies. Just my luck to pay the premium for decades and have them not be able to pay out if I were to drop dead. I went with $2 million (2 separate policies of $1 million each from 2 different companies to spread the risk).
 
  • Like
Reactions: BigWill

yesrutgers01

Hall of Famer
Gold Member
Nov 9, 2008
26,302
24,573
113
Don't want to get too personal, but why a fairly large mortgage and working another 10-15 years? You like working that much? As we know, everybody is different--but we are scaling down and prepping for a simpler, less expensive life of becoming hunters, gatherers and growers--living off the land--well, not exactly, but we looking at ways to reduce our spend now that the kids are in (and soon in) college and will be out of the house soon.
It is OK- the thing is that 2008 hit us both very hard. Pretty much had to start over and yet had a really big house and mortgage we had to deal with that was upside down until recently when we sold it. And though we will downsize when we get into our next house, we have both realized that we will always need space and want to live in comfort. My job/career mostly let's me work from home, is not physical, I really enjoy it and it has a lot of flexibility. Generous expense account helps as well. Next home will be on the water- either down in SNJ or on a Lake. If I can have a laptop on my porch or dock on the water and do my job and make very good cash as I am doing it, golf, fish, go to games, eat out, vacation where I want...why not keep at it?
 

yesrutgers01

Hall of Famer
Gold Member
Nov 9, 2008
26,302
24,573
113
I think the first bolded sentence is correct, but it doesn't support the second. If your death during your earning years would result in financial hardship to your wife, then you need term insurance to protect your income. And vice versa.

Term insurance is pretty much a commodity. I would find a website that offers quotes from multiple high-rated companies, and pick the cheapest. This process may result in you and your wife buying from different companies.

I agree with Doctor Worm that it is basically a commodity but there is a very slight risk the provider goes bankrupt over the next 20-25 years so I would favor one of the more well know (higher rated) companies. Just my luck to pay the premium for decades and have them not be able to pay out if I were to drop dead. I went with $2 million (2 separate policies of $1 million each from 2 different companies to spread the risk).

Both good info...thanks makes sense
 

phs73rc77gsm83

All Conference
Gold Member
Aug 11, 2011
2,531
3,099
113
I think the first bolded sentence is correct, but it doesn't support the second. If your death during your earning years would result in financial hardship to your wife, then you need term insurance to protect your income. And vice versa.

Term insurance is pretty much a commodity. I would find a website that offers quotes from multiple high-rated companies, and pick the cheapest. This process may result in you and your wife buying from different companies.
Yes, I agree with you but I probably wasn’t clear. My point was that term replaces income if one spouse passes, and with his son now on his own, he really doesn’t need to factor his son in on the needs equation.
 

BigWill

All Conference
Gold Member
Jul 25, 2001
4,271
3,006
113
Cheap is good, just research that companies record on pay outs on written policies.

After all it's called 'insurance' for a reason, so cheapest may not be the best way, but cheaper may be.

The Wife is very expensive to replace on a daily basis, get her a policy as well.
 

yesrutgers01

Hall of Famer
Gold Member
Nov 9, 2008
26,302
24,573
113
Cheap is good, just research that companies record on pay outs on written policies.

After all it's called 'insurance' for a reason, so cheapest may not be the best way, but cheaper may be.

The Wife is very expensive to replace on a daily basis, get her a policy as well.
I agree about cheap not always better. That is sort of one of the pitfalls I want to look out for. record of payouts. As others have mentioned, maybe do compare as a commodity but only with the name brand insurance companies. And will be getting it for both the wife and I
 
  • Like
Reactions: BigWill

NorthernKnight

Hall of Famer
Gold Member
Jul 25, 2001
47,948
27,816
113
I can do the research but quite honestly, I start out doing so and they all pretty much look the same. Wife and I both in our 50's very healthy but neither have life insurance. We have other investments so thinking of term life just as a security blanket. Any suggestions on who to look at and what to look for as positives and negatives when comparing?

Thanks

BTW- meant to put the OT in title but can't find how to edit it to do so after I posted
Rutgers alum assn
 
  • Like
Reactions: albanyknight

Doteman

Senior
Mar 15, 2007
1,259
395
83
I sold life insurance and it's a commodity. In the unlikely event they go bankrupt they would undoubtedly be acquired by another company who would just keep your policy in force under the terms you purchased. With that being said if spending a few extra bucks a month helps you sleep better at night because you went with Metlife instead of Banner Life then go for it
 

Doctor Worm

Hall of Famer
Gold Member
Feb 8, 2002
24,212
15,452
113
I agree with Doctor Worm that it is basically a commodity but there is a very slight risk the provider goes bankrupt over the next 20-25 years so I would favor one of the more well know (higher rated) companies. Just my luck to pay the premium for decades and have them not be able to pay out if I were to drop dead. I went with $2 million (2 separate policies of $1 million each from 2 different companies to spread the risk).
This is true. But NJ does have a mitigation in place. All companies doing business in NJ must contribute to a fund which will make payments to policyholders of insolvent companies. You may not get 100 cents on the dollar, and it may take a while. But you'll be in better shape than the general creditors in bankruptcy proceedings.
 

Tango Two

Moderator
Moderator
Aug 21, 2001
40,138
25,549
113
North Brunswick, New Jersey
I can do the research but quite honestly, I start out doing so and they all pretty much look the same. Wife and I both in our 50's very healthy but neither have life insurance. We have other investments so thinking of term life just as a security blanket. Any suggestions on who to look at and what to look for as positives and negatives when comparing?

Thanks

BTW- meant to put the OT in title but can't find how to edit it to do so after I posted


Get a quote here:

https://www.zanderins.com/
 

RUfromSoCal?

Hall of Famer
Gold Member
Nov 27, 2006
23,770
23,904
113
USAA if you can (i.e. were in military or have familiy - their rates are truly among the best anywhere for folks 45+)

Otherwise - go on one of those websites and select any AAA/A+ rates - Term Insurance is a great value - but pretty much a commodity (don't get hung up on any of the "value added" programs they offer (i.e., discount programs, etc... they are meaningless)...
 
Last edited:
  • Like
Reactions: m1ipabrams and KevH

T2Kplus10

Hall of Famer
Feb 24, 2010
28,199
17,433
113
I have a relatively large policy because I'm the sole breadwinner. If you have good health and nothing bad in your family history, it is pretty affordable, even in your 50s. MetLife has an on-line application process. I had to go and get blood work done (free) and they then provided a quote. Obviously, the shorter the term, the cheaper it is. I wanted to be covered until I was 65 so got a 20 year policy in my mid 40s. Annual fixed premium. My wife does not have a policy. If I go missing, it was my wife!
This ^^^^^ the perfect strategy. We did two 20-year terms on me, the second starting 5 years later. I'm covered until 55-60. Should have tried to get to 65, but we will be fine. I signed up for survivors supplemental income insurance at work. It will pay my wife 40% of my base/bonus tax free until she is 65.
 

beaced

Hall of Famer
Jul 18, 2004
31,181
9,092
113
96
sunrise fl
All the kids are out of the house. just sold our house and renting for now but expecting a fairly large mortgage again in a couple of years. Both of us expect to work another 10-15 years with substantial income. Figuring that term life is a fairly inexpensive way for a cash safety net in case one of us passes unexpected.
Makes great sense. Buy the most for the least from a reputable company.
 

e5fdny

Hall of Famer
Gold Member
Nov 11, 2002
46,630
25,672
113
I have term for “just in case” since if happens at work, wife and the kids are set for life. She has one too but not as high as mine.

I’m covered pretty good with $1M on me. That will expire in a few years so I’ll be in the same boat as @yesrutgers01
 
Last edited:

mikebal9

All Conference
Oct 15, 2005
4,666
3,225
113
44
Bound Brook
My wife and I each took out 20 year term policies for $500,000 each that will basically carry us to the point where our boys will be through high school and almost done with college, if they elect to go. Probably should have made it 25 years and may look to do so at some point. But if one of us goes, the other will get that amount plus our current policy from work, which will cover paying off all mortgages, college for the boys, etc. If we both go, our boys are rich! (Parentless, but rich)

I also bought each of them a whole life policy as a gift. Basically, along with the insurance, it's a nice way to save for them. I'm not a strong saver, so for the small monthly amount I pay, it's like a savings account with a fringe benefit of additional life insurance that they'll always have. I took a 20 year payoff term on those as well.
(But for myself, I agree with the above...whole life didn't really make any sense.)
 

Bedivir

Redshirt
Nov 29, 2021
4
0
1
Certainly, having health insurance is very important as a security blanket. You never know what could happen in the next minute. I never had health insurance before, I only used car insurance, but I realized how short and unexpected life is after a car accident. I had a broken leg and ribs, and if I had insurance, it would have cost me less, but I had to pay for it myself. After I recovered, I took out Squeeze life and health insurance to ensure my future.
 
Last edited:

JayDogSmooth

Junior
Aug 18, 2006
857
413
63
We did the complete opposite of what logic says, as the old adage goes don't use insurance as an investment / future savings.

However, I looked at it as if something happens, my wife and daughter will be taken care of (term and whole), and in regard to whole, it's forcing me to save additional money each month for the future.

OTTOMH, we have 6 policies total. I have regular whole and 10 pay, wife has whole/ten pay/term and daughter has a 20 pay.

Cost us about 1k total per month, the term goes to waste unless one of us or both passes away, but it's relatively cheap.

My whole and 10 pay tick up considerably, so if I cash out at 85, a 100k policy turns into ~450k tax free. Total we have around 2.1 mil, then with work it's near 2.5 mil.

If we both make it to 85 and are short on cash, we can cash out all policies and have about 900k. Again, not ideal and goes against the grain, but being old-school Italian, it's a Just-in-case type of plan
 

Groggy Pirate

Redshirt
Jul 15, 2021
2
3
3
One should consider term life to replace the loss not only of a partner's wages/salary, but also anticipated social security income. While the surviving spouse gets the higher of the two SS benefits, the loss of one can be a significant hit.
 

rutgersdave

Hall of Famer
Jan 23, 2004
21,906
12,326
113
This ^^^^^ the perfect strategy. We did two 20-year terms on me, the second starting 5 years later. I'm covered until 55-60. Should have tried to get to 65, but we will be fine. I signed up for survivors supplemental income insurance at work. It will pay my wife 40% of my base/bonus tax free until she is 65.
Anyone that is the main income provider should have the supplemental income insurance. It is more expensive than term or other insurance at work. I know of two instances where the individuals had brain damage due to stroke and medical accident during testing. They weren’t able to go back to work due to their disability. Both had great income that weren’t compensated because they didn’t elect supplemental insurance. You might not be able to get the supplemental insurance because insurance companies will require a physical and any medical condition will be denied. You should elect the supplemental when you start a new job and they have to accept you no matter pre existing conditions.
 
Last edited:

RU76COOK

Sophomore
Dec 30, 2007
437
109
43
Term is the only way to go and in most cases it makes sense to always have some. A lot of insurance if you're young with children, no brainer. If you're young with no children you'll want the lucky sap sleeping with your widow to be comfortable. Even if you're both retired and collecting SSA and/or pensions, when one dies the income decreases by roughly half but most expenses are fixed (Mtg., HOA, property tax, car, utilities) so a little insurance makes sense.
 
  • Like
Reactions: yesrutgers01

Southern Gentleman

All American
Aug 10, 2011
6,976
3,195
113
Just so you know, in all of the 36 years of selling life insurance and delivering death claims I never had a spouse ask me what type of life insurance the deceased spouse left, the question was always “how much”?

And as to what type the client should buy, we’ll that depends on many factors. Your budget, your health, how many kids do you have, how old are they, does the spouse work outside the home, how stressful your occupation is, is it dangerous, will there be other sources of income available in the absence of what life insurance could provide, etc.

There are many good life insurance companies A, A+, A++ rated are the ones you should be looking at /or purchasing. For young families I usually recommended 20 to 30 year term policies with face amounts of death benefit commensurate with the goals and current income of the client. Fewer companies offer 30 year term but since the average child( and this varies)stays on your payroll until about age 22-26, the 30 year term makes a lot of sense.
Look for policies from respected companies that have a conversion privilege should you decide you need some degree of permanent coverage down the road. Also, look for a salesperson with experience, not a newbie in the business less than 3 years. I am retired now but I had 1 major company that I worked for in addition I had about 23 other companies that I was licensed with because no 1 company has all the answers to the many varied issues of the clients. Some people have minor /major health issues and weird occupations that skew underwriting. .
Also, don’t overlook some of the riders that are available on life policies(accidental death benefit, disability waiver of premium, unemployment riders, nursing home /long term health care, etc.) You would be surprised at how many younger people are no longer paying any premiums on their policies because they have become disabled. And, most of the disabilities are due to illness, not accidents.
every person that buys life insurance has different needs to be addressed. One factor that they all have in common is that they love someone or some organization and that motivates them to buy.
find a good agent with years of experience who represents way more than one company. Everybody is different and unique.
And you can use life insurance to leave a legacy to Rutgers!
 

vkj91

Hall of Famer
Gold Member
Feb 7, 2007
40,607
35,958
113
My financial advisor sold me on this plan. As the primary bread winner I have enough insurance so that if I died my wife could pay off any debt, not work, and their lifestyle Wouldn’t have to change. If my wife dies, she has enough coverage for me to pay someone to do everything she does so I can continue to work.
 

RUfromSoCal?

Hall of Famer
Gold Member
Nov 27, 2006
23,770
23,904
113
The key is never have too much insurance........ I don't need to be a target for the pool boy....
 

e5fdny

Hall of Famer
Gold Member
Nov 11, 2002
46,630
25,672
113
My financial advisor sold me on this plan. As the primary bread winner I have enough insurance so that if I died my wife could pay off any debt, not work, and their lifestyle Wouldn’t have to change. If my wife dies, she has enough coverage for me to pay someone to do everything she does so I can continue to work.
That’s how we did it too.
 

mildone

Hall of Famer
Dec 19, 2011
45,046
42,152
113
One factor that they all have in common is that they love someone or some organization and that motivates them to buy.
This is true. While my family is already taken care of without insurance, I do have a massive variable life insurance policy to take care of the sheep and the hookers when I go.