Comments on: Do You Need Term Life Insurance?

By: How Much Term Life Insurance Do You Need to Buy?

How Much Term Life Insurance Do You Need to Buy? — Tue, 13 Oct 2009 06:12:49 +0000

[...] determine how much term life insurance you need, you need to perform a needs analysis. Here’s a step by step guide to calculate how much [...]

By: Denise

Denise — Thu, 16 Apr 2009 09:22:02 +0000

There are no doubt a number of factors to keep in mind when choosing a life insurance policy. When faced with the many options available it is easy to get confused and lose sight of the bigger picture. The main reason behind taking out a life insurance policy is to replace the income of the insurer after his or her death. A dependent spouse, young children and even siblings who rely on you financially will not suffer after your demise with the correct insurance plan. Life insurance benefits can be used to cover burial and funeral expenses, debt and medical bills and estate taxes. Your beneficiaries can benefit from the inheritance of your life insurance policy benefits. Insurances such as whole life and universal life insurance with a cash value component can even be used as a mode of savings as this element can be withdrawn or borrowed on request. Insurance here acts as an enforced savings plan and is imperative for anyone who recognizes the importance of planning for the future.

Denise at AccuQuote

By: TStrump

TStrump — Sun, 15 Mar 2009 05:28:01 +0000

While I don’t have any people that really depend on my and my accounts are in order, I still have term insurance.
I think if something ever happened to me, I like the idea of giving my remaining family members a ‘gift’ to make their lives easier.

By: PT

PT — Thu, 12 Mar 2009 05:55:37 +0000

More places to get quotes (recommended by Liz Weston):

Term4Sale.com
Insure.com
Ameritas.com (Direct)

By: PT

PT — Thu, 12 Mar 2009 05:35:23 +0000

@Mr Plasectomy – I did a roundup of opinions on life insurance a couple of weeks ago (http://ptmoney.com/2009/02/27/life-insurance-when-and-where-to-get-it/). Some of the places they mentioned they purchased insurance were:

AccuQuote.com
SelectQuote
Netquote.com
USAA
Chastainotis.com
InsureMe.com
Prudential
State Farm
AIG
Farmers
AllState

I would also add:

Your Employer
Your Professional Organizations

As for the differentiator, I don’t know. I’m assuming some of the quotes may have you coming in as a superman, while others actually factored in your health. Some low ball, while others take the high road.

I suspect a quick email to the folks at Zander might clear it up.

By: PT

PT — Thu, 12 Mar 2009 05:30:07 +0000

@Weakonomist – I would hesitate to say that they “always” do this. Insurance products, like any other financial product can be used for both positive and negative means. I definitely get your point though about the sales spin and the commissions.

Whole has it’s place for some people though. It’s there b/c consumers demanded it.

The reference to investment doesn’t offend me. I can see how some people might be offended though.

By: Mr Plasectomy

Mr Plasectomy — Wed, 11 Mar 2009 19:34:23 +0000

We have three small children and my wife is a stay at home mom. Term life insurance is extremely important to us as she is spending these years raising our children and not working. It is difficult enough living on one income and I cannot imagine leaving my family with nothing if something were to happen. That said we still do not have it.

When shopping for insurance who do you know to go with with all the different providers out there? Running a quick quote at zander insurance provides a comprehensive list of companies with rates ranging from $400-1200 a year for the same coverage? What is the differentiator in price?

By: The Weakonomist

The Weakonomist — Wed, 11 Mar 2009 12:57:10 +0000

I agree with the first commenter. Insurance is not an investment and if you die that is not a return on investment. This post is a bit offensive in that right.

Insurance salesmen always call insurance an investment to get you to buy whole life because they make more money off the commission. If whole and term were the same premium or comparable this would be a different story, but term is just a no brainer at todays rates.

By: BeThisWay

BeThisWay — Wed, 11 Mar 2009 12:34:20 +0000

This is a decent explanation, but I have one problem with it. Life insurance and investment should never be used in the same context buy an insurance professional. It’s misleading, in my opinion. Term insurance is NEVER an investment – it’s renting insurance. In most cases you don’t build a cash value,so the only chance of a return is death.

I’m not saying that term is a bad idea – it isn’t at all! It’s a terrific product, and when I was an agent I always recommended a small whole life policy (because the premiums never go up so you can afford it later in life if you have to drop the term because the premiums will become VERY high. We all know that you may NOT be more financially coomfortable later!) supplemented by term with a large death benefit that is much more affordable, and much more needed when you have kids and a mortgage.

I took out a small whole life policy that is only payable for 10 years, then it’s paid up forever. That is supplemented with term. I know it’s possible to get a better return on my money with an investment, but today’s economy is making me feel pretty happy with the choice I made.