Life Insurance Recommendations

[fidgiegirl]

We'd like to buy some more life insurance. Our carrier (State Farm) has given us prices that I think are a bit on the high side and I'd like to do a bit of shopping around, but given that we've dragged our feet on this for years, I want to keep the comparison shopping to a minimum - perhaps checking out one or two other companies, not everyone under the sun, and getting this finished.

There are so many companies out there. In your experience, which have a good reputation, but affordable term policies?

[dado potato]

All those years you dragged your feet and did not buy life insurance were pure gravy for you. Congratulations!

Why, if I may ask, would you like to buy life insurance now?

My view is that life insurance has a (rare) place... where there is a dependent beneficiary who would be hard-pressed to live without the income contributed by the breadwinner. In cases like that, it may make sense to insure the breadwinner's life at an amount that would support the dependent beneficiary for a sufficient period of time.

I would select term life insurance for this purpose. Often the lowest cost term life insurance is arranged through group policies at the breadwinner's employer. (At least that was the case when I was in the paid workforce, lo those many years ago.)

In keeping with the simple living ideal of saving and investing for the crossover level of assets, the money spent on life insurance premiums could better be added to household net worth. In other words, buyer beware.

[SteveinMN]

Kelli did mention wanting to buy term coverage.

I wonder, Kelli, if you might be best served by contacting an independent insurance broker. They deal with multiple companies and can identify companies which will have the product you want at the best price. They also know which companies in their stable are pains to deal with. One such agent in your area (not someone I have experience with, though) is Wiessner Agency, 250 S. Hamline Ave.

[fidgiegirl]

Good idea, Steve.

We are in complete agreement, dado. We are having a baby and that is why it is now more pressing. In our childless days we have had $100K coverage through work for a very affordable amount, but I do not want to tie additional coverage to employment. Also with daycare at $1200 a month in centers and upwards, a surviving spouse would be spending half their take home pay just to cover that. They would have to move as well. So, at this season of life, we're going ahead with insurance.

[flowerseverywhere]

Check with your bank. When I had small kids we had a term life policy in NY through our local bank. I don't know if it was just ny or what. I carried this insurance until they were grown. Don't forget that if one of you dies, there is help from SS for the family. My friend who,was widowed was greatly helped by these payments until the kids reached age 18. Another good starting place is bankrate.com. Good luck

[Float On]

We've had policies through State Farm as well as two different other companies. We went through an insurance broker to get the other policies. We had three policies on each of us because we traveled so much with the art shows. We've had several friends die in car wrecks on their way to or from art shows. A loaded truck with metal display, boxes of glass, etc.... just didn't sound like very good odds for making it out of a wreck. Morbid thought I know but the boys were just babies in car seats when we started traveling for the shows. We wanted to make sure there was plenty for them and our bills. We're down to one on me and two on DH now that we don't travel for the shows. Even though at this point that is lost money on the policies I canceled it where there and available if we needed it.

[Spartana]

I don't know who he recommends, but Dave Ramsey has a lot about life insurance (pros and cons of whole life vs. term life) on his website so you might check that out. I don't have life insurance myself but then I don't have anyone/thing that would need to be supported if I died.

[rodeosweetheart]

Congratulations, Fidgie, that is wonderful news

[cx3]

There is a lot to consider when selecting a life insurance policy. Its not like comparing the price for a gallon of milk at different grocery stores.
Term is almost always the best option over a cash value policy.

In todays environment,underwriting is a huge factor in determining what premium you will get,if they will even cover you at all.Your pregnancy may be an issue with some companies.Many companies won't grant you a policy until after pregnancy,but some may.I've seen companies that will underwrite you up to third trimester. Some may cover you with exemption from death due to pregnancy issues.You will have to shop around and see, or discuss this with an agent.Underwriting standards can vary greatly between companies. So it would be a good idea to shop around.

Also,being declined for coverage because of an underwriting issue can haunt you later.An agent can be very helpful in this area.

What duration? I purchased a 15yr renewable term 17 years ago,figuring I would be in sound financial shape by now.Wrong. I'm in worse financial shape now than I was then.I wish I had gone for a longer term back then. Hindsight is always 20/20.

I'm the self appointed forum idiot so please don't construe any of this as advice.

[Florence]

I think there is definitely a time in one's life when life insurance is a good idea. Term life insurance allows you to purchase the amount of insurance that you need for the period it is needed. Contact an independent broker who will compare many policies, explain them to you so that you can understand them, and then let you decide what you need. Someone mentioned checking the Dave Ramsey site and that is good advice too. Let us know what you choose.