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Thread: Any life Ins. experts on here?

  1. #1

    Default Any life Ins. experts on here?

    I am looking to get some life Ins. but I am boggled by all of the different terms and company's that their are to choose from.
    Any advice?
    http://www.youtube.com/TonyAvallone
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  2. #2
    Olympic Champ RYou's Avatar
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    Default Re: Any life Ins. experts on here?

    Why are you buying now ? What do want to accomplish, financial protection for the family?

    There basically 2 kinds Term and all of the rest.

    With term insurance, you pay a premium for some value of life insurance over a define period of time. If you stop paying the premium there is no cash value. At the end of the term 20, 30, 40 years, if you're still alive, the policy ends and there is no cash value.

    With the myriad others, there is some cash value accummulated over time, whole life, universal life. Some can be converted to term and back, others can't be converted.

    With you can buy more for less. Because there is cash value in the others, something of a forced savings account, they will start accummulate cash value almost immediately.

    Buying is generally a function of need and wealth. If you don't have a lot of extra cash but need financial protection for the family, term might be the better route.

    On the other hand, with a form like universal life, you can accumulate cash value without paying taxes on the interest gained. At some point in the years ahead, say 20 years, you'll finsh paying and can take the money out as a loan without paying taxes on the interest. When you croak, the policy is terminated but you get know cash.

    Note, the insurance detah benefitsd are exlcuded from estate tax calcualtions so they're a fairly safe savings instrument - today. The tax laws can always change.

    By the way, for you older folks, stay the heck away from annuities. When you die the accumulated interest is taxed as ordinary income - the highest tax rate. They're nice for supplementing income in you're older years, but they get killed by state and fed taxes. They're the worst for protecting assets after death.

  3. #3

    Default Re: Any life Ins. experts on here?

    Quote Originally Posted by RYou View Post
    Why are you buying now ?
    Financial protection for the family.
    http://www.youtube.com/TonyAvallone
    Dad of Karissa 155lb Varsity College Freshman

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    Olympic Champ RYou's Avatar
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    Default Re: Any life Ins. experts on here?

    I don't know what your financial position is, but you can buy a lot more term insurance coverage versus the cost of the others. When you're young and have kids, it often tough to fund whole or universal life plans when you need significant amounts of insurance protection.

    As for which insurance company, that decision is equally difficult. There are alot of sound regional companies, and a bunch of national household names.

    The one financial rating you should ask about is the "Best" rating. The highest is A+15. Generally any company that A+ or better is okay. I would stick with one that just underwrites life insurance, like New York Life, or SBLI. There's less chance some outside influence could send them belly up, like Kemper.

  5. #5

    Default Re: Any life Ins. experts on here?

    Insurance SUCKS as an investment. I would suggest you buy term to give your family protection while you build your portfolio. Use the difference in premium between term and whole life (everything that isn't term) to add to your investments.

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    Ancient Arachnid Spider's Avatar
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    Default Re: Any life Ins. experts on here?

    Good advice above. A wise man once told me that the difference between term insurance and whole life (investment) insurance is that with term, you go to Hawaii; with whole life, your insurance agent goes to Hawaii.

    A good, cheap way to buy term life insurance is Savings Bank Life Insurance. I did this awhile ago when I needed to provide for my daughter, then dropped it when it was no longer needed. I don't know if it's still available, but it was a good deal then.
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    Olympic Champ RYou's Avatar
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    Default Re: Any life Ins. experts on here?

    Quote Originally Posted by Spider View Post
    Good advice above. A wise man once told me that the difference between term insurance and whole life (investment) insurance is that with term, you go to Hawaii; with whole life, your insurance agent goes to Hawaii.

    A good, cheap way to buy term life insurance is Savings Bank Life Insurance. I did this awhile ago when I needed to provide for my daughter, then dropped it when it was no longer needed. I don't know if it's still available, but it was a good deal then.
    I've got my wife on an SBLI policy. I don't think they're national though.

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    Default Re: Any life Ins. experts on here?

    Quote Originally Posted by Avallone View Post
    I am looking to get some life Ins. but I am boggled by all of the different terms and company's that their are to choose from.
    Any advice?
    I've found the cheapest life insurance is from my employer (because the cost is pooled). Many offer this benefit. If this is available, and you haven't already looked into it, you might want to.

    RYou's suggestion that you check Best ratings is good. A shortcut is to look at cos. you've heard of: Northwestern Mutual, John Hancock, The Principal, New York Life, are just a few of the established name cos, and I'm sure they're all reliable. I'm not impressed by the solicitations I've received in the mail. Most of that stuff is vastly overpriced.

    Basic term life insurance isn't all that complex--not like many other types of insurance. If you have specific questions about a term or concept, I'd be glad to help and I'm sure others would too.

  9. #9

    Default Re: Any life Ins. experts on here?

    If you hear the term "variable life" RUN!!!!!!!

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