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Re: buying life insurance
Old 04-11-2006, 03:41 PM   #21
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Re: buying life insurance

I'm starting to get nervous about the amount I carry. DW has 400k, I have:

400k 10 year term
210k through work (it's free)

So I'm only sitting on enough to pay off all debts and leave the wife with ~300k in the bank. Doesn't SS pay a death benefit? Might buy another couple hundred k now that she's quit work...
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Re: buying life insurance
Old 04-11-2006, 03:54 PM   #22
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Re: buying life insurance

Quote:
Originally Posted by Laurence
I'm starting to get nervous about the amount I carry. DW has 400k, I have:

400k 10 year term
210k through work (it's free)

So I'm only sitting on enough to pay off all debts and leave the wife with ~300k in the bank.* Doesn't SS pay a death benefit?* Might buy another couple hundred k now that she's quit work...
Laurence, I don't know what your asset base is like, but if you are like me it is healthy, but not nearly enough to carry my survivors for very long. If you get hit by the proverbial bus, your DW would have Tori to take care of plus she would have to go earn a full time living. Not a happy situation. Might be a good idea to revisit your coverage. [Dr. Evil] One MILLION Dollars [/Dr. Evil] in life insurance is cheap (maybe $600 a year for a 20 year term policy for you if you are in goood shape).
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Re: buying life insurance
Old 04-11-2006, 03:58 PM   #23
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Re: buying life insurance

To those worried about underinsuring their lives, don't forget about SS survivor's benefits. I always knew these were huge. I got my first annual social security statement in the mail yesterday (yes, I'm officially 25 now). If I die tomorrow, my wife gets $2283/mo survivor's benefits for her plus two kids till they are 18. If we only had one kid, she would get around $2000/mo. And this is based on a sketchy earnings history from when I was in college working here and there, and a partial year of earnings at my current job (~$31000 for what I worked in 2004). Not a ton of money, but an extra $27,400 per year will go a long way to support her and two kids. Heck, a lot of families are living on that right now.

I've opted for a small amount of life insurance exactly because of the SS survivors benefits.
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Re: buying life insurance
Old 04-11-2006, 04:00 PM   #24
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Re: buying life insurance

I just looked on line, I can get another 300k for about 15 bucks a month, so I think I'll be making a purchase.

EDIT: Justin, see that was what I was thinking about when I initially chose my coverage level. But an extra $15 a month to err on the side of caution sounds prudent at this point.
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Re: buying life insurance
Old 04-12-2006, 10:08 AM   #25
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Re: buying life insurance

is getting several 100K policies cheaper than a 300 or 400K policy? Is this a good money savings strategy?
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Re: buying life insurance
Old 04-12-2006, 10:14 AM   #26
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Re: buying life insurance

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Originally Posted by Bimmerbill
is getting several 100K policies cheaper than a 300 or 400K policy?* Is this a good money savings strategy?*

Usually you get a better deal with a larger policy, since the administration costs don't change with face amount. Try looking at 500k policies, which is a common break-point in costs.
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Re: buying life insurance
Old 04-12-2006, 10:38 AM   #27
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Re: buying life insurance

Quote:
Originally Posted by Laurence
EDIT: Justin, see that was what I was thinking about when I initially chose my coverage level. But an extra $15 a month to err on the side of caution sounds prudent at this point.
I guess we are in different situations too. My mortgage is ~$100k, yours is a lot bigger. And given your daughter's health issues, you might be wise to err on the side of caution. My wife is working and our daughters are/will stay at grandma's house (cheap childcare!). The SS survivor's benefits would cover a big part of my family's needs in the event of my early demise.

If peace of mind can be bought for $180/yr, go for it! Coverage is cheap and can be locked in so you'll have protection till your portfolio gets big enough to support the family in the event of your early demise.



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Re: buying life insurance
Old 04-12-2006, 11:22 AM   #28
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Re: buying life insurance

Don’t want to hijack this thread, but USAA made me so mad I can’t just let all the praise go by.

I have had USAA for 40+ years, and yes on the surface it is a good company. However, in the past two years I have had occasion to ask ‘Our Insurance’ company for request that might be considered ‘out of the ordinary’. Boy did it hit home. USAA is a large company interested in making money. To the extent they offer a good deal on a product I will purchase. But don’t ever loose sight of the fact they are out to make money.

My brother died. He was a USAA member also. As the executor of his estate I needed insurance on his house for 90 days while I completed the sale to another USAA member. USAA said no way! State Farm said SURE.

We just finished purchasing a house. Used USAA as the mortgage co. Without going into details, it was the worst experience I have ever had with a mortgage co. I will never use them again for this purpose.

Another brother died in an auto accident as a passenger. USAA was the insurer of the car. SIL stated USAA was the only insurance company that gave them a hassle.
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Re: buying life insurance
Old 04-12-2006, 11:44 AM   #29
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Re: buying life insurance

Quote:
Donít want to hijack this thread, but USAA made me so mad I canít just let all the praise go by.
If this was your intent, i probably would have left off the part about having done business with them for 40+ years (and counting).
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Re: buying life insurance
Old 04-12-2006, 12:06 PM   #30
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Re: buying life insurance

Quote:
Originally Posted by Rustic23
Donít want to hijack this thread, but USAA made me so mad I canít just let all the praise go by.
Rustic23, when you and I first started dealing with USAA they were a much different company than they are today. True, what company doesn't change over a period of three or four decades, but the change has been discouraging to long term customers who experienced the old USAA. Being a memberof USAA once meant something, now it is just a euphemism for customer. You can argue the change was necessary to remain viable in todays insurance environment, but it sure is disappointing to those of us who have seen what it was and what it has become.

My wife worked for USAA in claims for a number of years, right when these changes were taking place. Seeing the direction the company was going helped her make the decision to seek employment elsewhere. She ended up with another big insurance firm with the same mind-set that USAA has, but at least she didn't have to listen to members like you and I rant about how disappointed they were in what their insurance company had become.

Quote:
Originally Posted by Azanon
If this was your intent, i probably would have left off the part about having done business with them for 40+ years (and counting).
I disagree. I continue to have almost all my insurance coverage through them.

USAA isn't generally worse than any other insurance company today as far as the services they offer, but they aren't significantly better either. They do have somewhat better rates on some types of coverage. But they are just another insurance company and they d@mn sure don't treat members like they did 20 years ago.
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Re: buying life insurance
Old 04-12-2006, 02:22 PM   #31
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Re: buying life insurance

Quote:
Originally Posted by REWahoo!
But they are just another insurance company and they d@mn sure don't treat members like they did 20 years ago.
Bummer-- does this mean I'm not going to get one of those cool "25-year member" stickers?
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Re: buying life insurance
Old 04-12-2006, 02:31 PM   #32
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Re: buying life insurance

Quote:
Originally Posted by Nords
Bummer-- does this mean I'm not going to get one of those cool "25-year member" stickers?
Dunno, but you can have mine if you want them. Wait, I think I trashed them about 10 years ago. How about a "See Rock City" bumper sticker instead?


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Re: buying life insurance
Old 04-24-2006, 12:05 PM   #33
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Re: buying life insurance

Ouch, I should have shopped for insurance before the baby. They price by the pound! So, my wife who still has some pregnancy weight on her is getting a higher quote than I am!
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Re: buying life insurance
Old 04-24-2006, 12:40 PM   #34
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Re: buying life insurance

The Lincoln National Life Insurance Company seems to be quoting the cheapest rates on several sites. About $65 less than USAA annually for me, more for my wife.

I am not sure if saving some money is worth trying an unknown company. I have accounts and insurance with USAA so it may be more convienent to keep all my financials with one company.

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Re: buying life insurance
Old 04-24-2006, 01:03 PM   #35
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Re: buying life insurance

I actually haven't bothered keeping my life insurance with everything else, as there doesn't seem to be any advatage. Nothing wrong with Lincoln for a term policy if they are cheaper than USAA.
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