All Life Insurance Tips

The cost of term life insurance?

Has the cost of life insurance gone up, down or stayed level over the last 20 years? My wife wants to get a policy for our 11 month old so his rate stays the same incase he comes down with a major disease or something. I know it is really cheap for say a 22 year old to get a 100K policy that is in good health. So I wonder. The odds of something major happening are slim ( no know family history of anything) and we could use that money to add to his 529, IRA (when he starts working) ect... What's everyones take?

Public Comments

1. The cost of term life has decreased substantially. Term coverage is better than whole life for 98% of people.
2. I usually explore the possibility of a whole life policy that is paid in full after 20 years for someone that age. I can usually write this type of policy for a couple hundred dollars a year and the policy will then accumulate cash value and your child will be able to take out a loan against it later in life if they so choose, or if something does happen that will impact their insurablility later in life, you will always have the policy you purchased.
3. You can't buy a Term policy for a child that young, except to put a Children's Term Rider (CTR) on a parent's policy. The CTR will cover ALL children born to or adopted to the insured parent, who under under the age of 18 at the time the policy is written. The CTR will cover the children up to age 25, depending on the policy/company, and gives them the guaranteed right to convert their coverage to Whole Life Insurance for up to 10 times the original amountat age 25. The best thing to do would be to call a LOCAL agent, and have him/her do free personal Financial Need Analysis (FNA), or othe Total Need Program, to help YOU determine YOUR need for Life Insurance. It is better that YOU and YOUR WIFE are insured to the proper amount to provide for your little one, should either of you be taken out of the picture. The FNA will help YOU determine how much and what type of life insurance YOU need to accomplish YOUR short and long-term goals and objectives. It will give YOU a better understanding, and YOU will gain knowledge of what YOUR total need for life insurance is. Don't let ANYBODY, agent or so-called financial planner, tell you that you need this amount or that, or this type of insurance or that, without doing personal FNA. If they do, they are not being professional, and are doing you a disservice. Remember, it's YOUR plan, and NOT theirs, and YOU decide how much and what type YOU need after you have been given several options on how to take care of YOUR situation. The FNA will also help you determine if you need Disability Income Protection, to provide an income should you be hurt or sick and can't work. It will also help you determine if you need an Individual Retirement Account (IRA) to provide an income when you retire. (All that will be there when you get there is what you send on ahead.) According to statistics, disability is a greater risk than death prior to the age of 65.
4. This is a great question. The cost of term insurance has gone down. I am a broker with several insurance companies and if you are interested I can send you free quotes from all of them. This way you can see the cheapest rates. Shoot me an email to knowyourterms@gmail.com with three items 1) date of birth 2) amount and 3) how many years you want term insurance to be?