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| *Loan,banking and credit>>>term insurance |
Best term length for life insurance? |
Looking to get term life insurance in the wake of a growing family. I'm 27 and looking to cover for my wife and daughter. So what is the best term length to be looking at? Most default to 10 or 20, although they seem to be out there up to 30 years. Obviously, longer the term the higher the premiums, but it is good for longer. Looking for well reasoned analysis for someone who knows what they're talking about... Use common sense, arithmetic and figure this out for yourself. You're 27 and you wife is .. and your daughter is .. In ten years you'll be 37 your wife .. your daughter.. but at 37 you'll need to reapply for life insurance or convert your existing policy (all re-computed for age 37) to a UL or WL policy paying a higher rate. Now do the same math for a 20 or 30 year term. When I was around your age I bought a 10 year 100K term policy; I outlived the policy and my financial needs outgrew 100K. If I were you, I'd pick a large enough amount (say 500K) and purchase the 30 year term. That way you won't have to worry about another policy until you're 57, your daughter is an adult and your wife .. is still lying about her age ;) PS There are over 1000 Life companies in the US, Plenty of them offer 30 year term so shop around; I find Primerica very pricey and their operators very shady. Source(s): http://ohio-insurance-forum.blogspot.com... 20 years $35,000 I thought that the longer term will attract lesser premia for the same sum assured. And the earlier you insure (the younger you are) the lesser the premium. First decide the amount of insurance which you need. That amount should be such that in the unfortunate event of the insurance claim maturing early, the income that comes from investing the sum assured should be equal to the monthly income, so that your wife and daughter are taken care of. You seem to know what you want the insurance to do. That is fantastic! Do you own your home? How old is your youngest and are you planning to send the kids to college? Do both you and your wife work?How many debts do you have right now? Do you see any other debt in five to ten years? Funeral expenses average about $6500, for burial, and less for cremation. Is it a longer period of time for your kids to go to college or for you to pay your house completely off? I know you probably won't stay in the same house but think now of how long it would take to pay it off if you stayed there. If it is longer to pay the house off, at minimum you want coverage for that length of time. I would even consider adding five to ten years from that, just in case. Realistically, at 27, you should be looking at 30-35 year level term. Only Primerica offers 35 year level term,that I know of. The other positives from their policies are that a spouse can be placed on the same policy as that of the primary owner and children can be covered, on same policy, for 1k- 25k, up to $15 per month. Oh yeah, this children coverage covers kids you have now and others you plan to have, for same price. By having wife and children on the policy, you save policy owner fees that other companies would charge for multiple policies. ANY insurance agent here works for an MLM company. Especially, if you receive bonuses from people you take out into the field and train. More especially, if you are an owner of an independent agency- I KNOW you earn bonuses off the people in your office. That alone qualifies you as an MLM company. Even more if you recruit people. You want the longest term you can get at a reasonable price. I don't know of anyone who sells more than a 20 year term, except for Primerica. I have NO first hand experience with them, but have heard they're a multi level marketing based company - which is NOT what I want in an insurance company, so I wouldn't buy from them anyway. You want the LONGEST term you can get, with a guaranteed renewable & convertible endorsement. Term insurance is "pure" insurance, so although a 20 year term might cost more than a 10 year, it's not THAT much more. When I bought mine, the difference was under $20 a year. agent, 21+ years |
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