All Life Insurance Tips

Whole-Life Insurance Prices?

What is a good rate? Age 35 Health very good (no problems) coverege $200k? $500k? Thanks!

Public Comments

1. Go to insureme.com they will give you quotes from several companies.
2. The proper amount you need is really what you need to protect. For example Loss of income, pay-off debts/liabilities, final expenses, college education. Example: Income - $50,000 yr X 7rs = $350,000 Liabilities - Mortgage = $75,000 - Loans (car, boat, student) = $20,000 Burial - $15,000 Kids Education - 4yr in state school = $120,000 TOTAL = $580,000 Minus Group Life at work = $200,000 Minus Savings = $20,000 TOTAL NEED = $380,000 Some people decide to only protect one thing at a time, the mortgage, for example. Life insurance is for those that live, not for the person who dies. Rates can vary, whole life is the most expensive. In my experience you are looking at $2500 to $6500 a year for $200k to $500k.
3. First, don't buy whole life. Insurance is not to be combined with savings. Example: Does you home owner's policy include savings? Does your auto policy include savings? Then why would your life policy include savings. Buy term insurance only. It's more affordable and does exactly what it was designed to do. Protect your family in the event of your premature death. Go to www.primerica.com for a full explaination.
4. Whole life is the most expensive life product out there. Since they are so expensive, you can see why its commonly sold (big commissions!). If its not whole life, then its universal life or variable life. or even more fancy terms, universal whole life or 20 year whole life. In either case, they are all very expensive that has low interest rate on cash value. Take a look at this, for a 35 year old male buying whole life insurance, a $200,000 coverage would cost him about $3000/year. For a $500,000 coverage, it would cost him $5500/year. Actual premium from different insurance companies are not too far off because insurance companies are competitive. If a 35 year old male bought a 30 year term, for a $200,000 coverage, it would cost him $400/year. For $500,000 coverage, it would cost him, $650/year. Why does whole life cost more than term? With whole life, your premiums are paying for two things. One is the insurance and the other is the cash value. A majority of your premiums goes into the insurance and the rest goes into the cash value. How much goes into each is only known by the underwriter. Life agents doesn't know and neither will the rest of public can know. What's even more bizarre about whole life is that if you wanted to use the cash value, you have to borrow it. You can't just take it out and never have to put it back in. When you borrow, you have to return and pay monthly interest on it. With term, you are paying strictly the insurance. People who buy term usually have an investment account setup as well (such as IRA, 401k, cd, bonds, money market, etc.). While you never want to take money out of your retirement accounts, you can always take money out of your savings and money market accounts and never have to put it back or pay monthly interest for taking it out.