Life Insurance: When and Where to Get It?

In this post I share responses regarding when and where to get life insurance.

With the arrival of our new baby, the question of what to do about life insurance comes to mind. To help us get some perspective, I reached out to some of my blogging friends and readers and asked them this question:

A good place to get started for life insurance is with PolicyGenius.  PolicyGenius provides free quotes in real-time from dozens of life insurance companies.

Do you currently have life insurance on yourself or your spouse and where should one go to find the right life insurance?

Their answers are below:

Sense to Save – We have life insurance on myself (a SAHM) and my husband. We have policies through my husband’s employer and also through Zander.com.

No Credit Needed – My wife and I both have term life policies, purchases through a local life insurance agent. He gave us a comparison of several life insurance companies, and we chose a company with a combination of low price and high rating.

Free From Broke – I get life insurance through work. I must admit this is an area we have to look into more thoroughly though.

Wide Open Wallet – We both have life insurance. I think it’s an absolute necessity while raising kids. In my opinion, term life insurance is the only way to go.

The Happy Rock – Yes we do. We have about 6 times my current salary. With no debt except a mortgage that sum will easily pay off the mortgage and give my wife plenty room to decide were the family needs to go. We probably need a little more insurance on my wife, so that I would be afforded similar options though. When we search we will only buy 20 or 30 year level term insurance from a highly rated company. It isn’t worth bother with things like whole life and other so called insurance innovations that are really just ways for them to make more money.

My Money Minute – As far as Life Insurance goes – we went through Dave Ramsey’s recommended broker, Zander Insurance. They give you quotes for a bunch of different insurance companies, and you can choose which one you want. We have 20 year term life insurance. You may need less, but we each got a $1MM policy. It costs about $75/month ($900/year) total for both policies, and we bought them about 18 months ago. For what it’s worth, I would tend to agree with Ramsey’s analysis on term vs. whole life insurance. I’d rather just insure against catastrophe and invest my money elsewhere.

No Debt Plan – Yes, yes, and yes. We both have life insurance policies. We used AccuQuote.com to find the cheapest deal specifically because we had read about it in Money Magazine. I think SelectQuote is similar if you want to really price compare. We were happy with the cost and got that taken care of in 2007. They are 20 year term life plans — none of that whole life garbage for us.

Budgets Are Sexy – YUP! The spouse and I signed up for it a couple years back when we first moved in together. We both have 30 year Term Life Insurance and pay about $55 total each month for a $350k policy each. The first place I’d recommend hitting up is USAA if you’re eligible (had to have been in the military, or related to someone who is/was). They’re always super competitive, and their customer service is beyond any other I’ve come across! Next, I’d check around w/ other PF Bloggers and see which companies they like. 🙂

The Shauls – We applied with a insurer but were denied due to our occupation. I guess it’s hard to measure a missionary’s risk level. I am going to reapply, however, with a different company. For me, it boils down to the right information with the right agent. If I feel like the guy on the other side of the table is just interested in selling me something, I’m moving on. Good thing for me is, insurance runs in the family. After three generations of private ownership, my relatives know their stuff. Look no further than http://chastainotis.com/.

Christian Personal Finance – I recently discussed this with my wife and because of our current favorable financial position we had decided against getting life insurance until we had kids. I wrote a post explaining my reasons for not having life insurance as a D.I.N.K, but thanks to some enlightening and persuasive comments from the readers I have been rethinking my decision.

ABCs of Investing – Life insurance – yes I have it. I’m the sole breadwinner in my fam so if we want my wife & kiddies to keep the same standard of living if I kick the bucket then it is necessary. You should be able to look up quotes online.

Moolanomy – Right now, I have a group term life through my job and my wife has a term life. I am in the process of shopping for my own term life, but with limited success. If you have a good relationship with your insurance agent, you can start there. Otherwise, you can try sites like NetQuote or InsureMe.

Rocket Finance – Life Insurance is one of the cheapest ways to provide for your family – everyone should consider long term care insurance as well.

Good Financial Cents – I currently have third party life insurance on myself. My wife has term insurance through her employer. Any reputable insurance agent and/or company will do. Be sure to check the stability of the insurance company and also shop around. When you do get a quote, make sure that they are not quoting you the “Superman” rate (unless you truly think you are that healthy). I would first start with your employer with insurance (group rates tend to be cheaper than third party). Your employer will only typically insure you up to a certain amount. If you need more, then go to the third party. In my experience, going to third party carriers that only offer proprietary insurance will be more expensive i.e. State Farm, AIG, Farmers. It might not always be the case, but several years ago my wife worked for AIG, for a bit, selling insurance (Thank goodness no more). With my old firm, I could offer AIG insurance as well as many other different carriers. Because we had life insurance questions, she ran a quote for a guy and, out of curiosity; I ran a quote for the same guy with same type of AIG insurance. Guess what? If he bought it through me, it would be about $20/mo cheaper. I’m not exactly sure why, but since then; I’ve always assumed that by going to just one company, you will probably pay a bit more. Editor’s note: read where Jeff discusses term vs cash value life insurance.

My Dollar Plan – We also have life insurance on both of us. Term insurance both through group coverage at the employer and purchased outside from a quote on Insweb.

Bible Money Matters – As far as life insurance, that’s one of those things I keep meaning to do, but don’t get around to. I’ve done some searching through Dave Ramsey’s suggested zander insurance, as well as insureme and netquote (I believe).

Free Money Finance – Yes, we have life insurance on both of us (though different amounts.) I went online, got a low price, then told an agent who I knew that he could write the policy if he matched the price. He did.

Reader J – We have limited life insurance through our job, but I’ve been considering Prudential. They hold my 401(k), and seem to be weathering the storm so far.

More reading from Four Pillars: How Much Life Insurance Do You Need.

Thanks for all you solid answers, guys. I appreciate the information.

If you’ve got an opinion on life insurance, I’d love to hear it. Share it in the comments below.
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Last Edited: February 29, 2016 @ 4:14 pmThe content of ptmoney.com is for general information purposes only and does not constitute professional advice. Visitors to ptmoney.com should not act upon the content or information without first seeking appropriate professional advice. In accordance with the latest FTC guidelines, we declare that we have a financial relationship with every company mentioned on this site.
About Philip Taylor

Philip Taylor, aka "PT", is a CPA, financial writer, FinCon CEO, and husband and father of three. He created PT Money back in 2007 to share his thoughts on money and to meet others passionate about managing their finances. All the content on this blog is original, and created or edited by PT. Read more about Philip Taylor, and be sure to connect with him on Twitter, Facebook, or view the Philip Taylor+ Google profile.

Comments

  1. Mr Plasectomy says:

    Life Insurance is so important and it’s one of those things that I keep meaning to do.

    My wife is a SAHM and I shudder to think what would happen if something happened to me. I need to make that call today and get some quotes.

    Great post and good to see where other people stack up on this issue.

  2. Nice collection of good tips. Congrats on the baby girl! We we have our second it will be weird holding a newborn again. Happy sleeping! 🙂

  3. We do have life insurance for both me and my wife. Even though she is a stay-at-home mom, it’s important to have something for her just in case.

    The big deal with life insurance is to not only help cover funeral expenses but give your income a breather during that major crisis in your life.

    You wouldn’t want to have to deal with a death AND a horrible financial situation on top of it.

  4. My sister and I have been on our own since college (our mom passed away when I was 16 and we’re on the outs with our stepfather) and have life insurance policies, ironically first set-up by our stepfather who was in great debt. :shudder:

    But we kept the policies when we struck out on our own in our early 20’s because we share everything – a house, all our money (we have joint bank and credit card accounts), our business, etc.

    It seems a little odd that 2 single people in their 20’s would have life insurance, but it gives us peace of mind. Our policies are enough to pay off our mortgage, so whoever was left wouldn’t have to worry about it.

    We also have 2 dogs who are our family and we want to make sure they will be well cared for should something happen to the both of us. The life insurance funds could assure them a comfortable life.

  5. I’ve got term insurance through my accounting association.
    Got an amazing deal so had to go for it.

  6. Jesus Pazmino says:

    The bad thing about looking for insurance online is that your information gets sold to tons of insurance agents. Especially sites like Netquote. You will have tons of phone calls and by the time you’re done looking for insurance, you’ve had such a bad experience. Look for a local insurance agent. It doesn’t cost you anything. Agents only get paid when they sell insurance. Your local agent will treat you much better than someone over the phone and best of all you won’t receive tons of phone calls.

  7. What review system did you use for finding a good reputable rated company?
     
    You state:
    ” When we search we will only buy 20 or 30 year level term insurance from a highly rated company. It isn’t worth bother with things like whole life and other so called insurance innovations that are really just ways for them to make more money.”
     
    All of the agents give you “hey we are highly rated..”
    How did you decipher who actually had the best ratings? What did you look at?