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Life Insurance - 10, 15 or 20 year Term

 
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amother




Navy


Post  Tue, Mar 05 2019, 9:43 pm
My husband is 45 years old and his first policy of 20 year term expired so the rate went up. We are debating if he should go with 10, 15 or 20 year term. The price on 20 year term is literally double of 10 year term. The broker offered us a policy that you can pay to you are 84 years old and then the plan expires but its very expensive.
Can you please help me decide if we should go with 10, 15 or 20 year term.
Until what age does most people have life insurance?
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doctorima




 
 
 


Post  Tue, Mar 05 2019, 9:46 pm
Obviously a lot depends on your budget and what you can afford, but many people purchase policies to cover until their mortgage is paid off and their youngest child is married or at least financially independent.
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amother




Navy


Post  Tue, Mar 05 2019, 9:52 pm
Our insurance broker is very aggressive and I don’t trust his opinion.
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amother




Chocolate


Post  Tue, Mar 05 2019, 10:31 pm
amother wrote:
Our insurance broker is very aggressive and I don’t trust his opinion.


Do you have a financial planner who looks at the whole picture? (investments, work income, business income, expenses).
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amother




Tan


Post  Wed, Mar 06 2019, 12:04 am
When I was in serious financial straits and debating life insurance, someone on this board put it this way: you do it for your kids. You should have coverage until your youngest is old enough to be independent.

It would also depend on any savings or investments you have. Bottom line, you don't want your minor kids to be in the lurch in case of tragedy ch"v.
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amother




Navy


Post  Wed, Mar 06 2019, 7:55 am
amother wrote:
Do you have a financial planner who looks at the whole picture? (investments, work income, business income, expenses).

We don’t have a financial planner. B”h we are very good about saving money.
This broker is just so aggressive and making us feel like we don’t want to take enough insurance and telling me he has clients that have $50 million dollars plus in life insurance and they are younger then us. I won’t even ask the premiums.
He is very anti term insurance.
I also was brought up with the assumption our responsibility will be to our kids until they can be financially independent but this agent is making it sound that one should have enough money to live off the interest of the life insurance policy. Because our responsibility will also be to give our kids monthly after they get married.
To me it seems like you would be working for the life insurance premium.
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ra_mom




 
 
 


Post  Wed, Mar 06 2019, 8:06 am
Ignore his upselling and passive aggressive remarks. You're doing the right thing by figuring out how long of a term you need. Do you still have kids at home, kids with college tuition, kids who need to be married off, mortgage or loans that need to be paid off? When will you start collecting social security? Factor all this in when deciding how many years of term to lock in at this rate.
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amother




Chocolate


Post  Wed, Mar 06 2019, 8:16 am
amother wrote:
We don’t have a financial planner. B”h we are very good about saving money.
This broker is just so aggressive and making us feel like we don’t want to take enough insurance and telling me he has clients that have $50 million dollars plus in life insurance and they are younger then us. I won’t even ask the premiums.
He is very anti term insurance.
I also was brought up with the assumption our responsibility will be to our kids until they can be financially independent but this agent is making it sound that one should have enough money to live off the interest of the life insurance policy. Because our responsibility will also be to give our kids monthly after they get married.
To me it seems like you would be working for the life insurance premium.


He makes much better money on whole life.

He’s not an advisor - he’s a salesman.

There are other ways to live post retirement, but he doesn’t sell any investment strategies other than insurance.
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Amarante




 
 
 


Post  Wed, Mar 06 2019, 9:46 am
You don't need insurance when you are 84 nor do you need more insurance than the amount you would need to meet your financial obligations.

Life insurance is not a way to fund retirement nor is it a way to pay for your adult children's luxuries.

Personally I would talk to another insurance agent because anyone who says that people have $50 million in insurance is clearly not using an honest sales pitch because no one needs $50 million in insurance.

As others have posted, figure out the number of years you need will have children who really need support and the amount of income that you would need to have replaced. You would of course figure in money in the event that your spouse would be relying on your income.
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amother




Navy


Post  Wed, Mar 06 2019, 9:56 am
Amarante wrote:
You don't need insurance when you are 84 nor do you need more insurance than the amount you would need to meet your financial obligations.

Life insurance is not a way to fund retirement nor is it a way to pay for your adult children's luxuries.

Personally I would talk to another insurance agent because anyone who says that people have $50 million in insurance is clearly not using an honest sales pitch because no one needs $50 million in insurance


Unfortunately people look at life insurance as a quick way to come rich.
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doctorima




 
 
 


Post  Wed, Mar 06 2019, 11:18 am
amother wrote:
Our insurance broker is very aggressive and I don’t trust his opinion.


Is there a reason that you're wedded to him? Why not shop around and get some other opinions and quotes and try to find someone you trust more?
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amother




Navy


Post  Wed, Mar 06 2019, 11:30 am
doctorima wrote:
Is there a reason that you're wedded to him? Why not shop around and get some other opinions and quotes and try to find someone you trust more?

He already took blood work. No one can guarantee you the rate until they take blood work. My husband doesn’t want to keep on getting pricked. He also gave a deposit here.
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