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Life Insurance advise
Old 07-09-2015, 08:21 PM   #1
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Life Insurance advise

I have term life insurance with WEAPA for the last 12 years or so. When I turn 45 this month, the premium jumps 48% ($26/month for $200K coverage). Is it normal that it increases this much at this relatively early age? I prefer to have term insurance until I retire at age 58 (most).

Anyone wants to share term life experience (rate/value) is appreciated.
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Old 07-09-2015, 08:29 PM   #2
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I had fixed cost term life. Fixed cost was low for 10 years and then I could do another 10 years at a higher predetermined price. The economics are that it is a good deal for the first 10 and the last 10 are in case you are terminal. What happened every time is that I would find a new policy, or renegotiate, at the 10 year mark or earlier if the numbers were good enough. I plan to run out this last 10 years and not renew. Have no need for life insurance after the kids leave the nest.
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Old 07-09-2015, 08:41 PM   #3
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From my experience, the answer is yes, there is a premium jump that is significant. I got term insurance at age 33. It was good for 10 years then the premium jumped. A lot; more than yours. I knew this going into it. I shopped around and got the same amount of insurance for a lower price at age 43. That insurance premium was about 50% lower than the original premium, but still pretty expensive. The policy was good for 15 years. 11 years in (last year), I stopped paying it, canceling the policy as I was FI. So, I had the same premium jump that you did. BTW, I got a discount by paying it in 6 month intervals.
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Old 07-09-2015, 09:40 PM   #4
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You might want to get some quotes for level term insurance that will last until you no longer need it. The premiums and benefit stay fixed for the entire term. It is costlier up front. See if these quotes beat the new price on your present policy (incl any future premium increases), but don't dump your present policy until you've passed any physical and have a policy in hand. Obviously, adjust for the time value of money if you are paying higher premiums early.
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Old 07-09-2015, 10:56 PM   #5
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Why do you need it ?
If you don't have kids, then there is no big need.

If its locked in for the next 10 yrs at $26/mo for 200K , that is not so bad.
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Old 07-09-2015, 11:41 PM   #6
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Quote:
Originally Posted by NextInLine View Post
I have term life insurance with WEAPA for the last 12 years or so. When I turn 45 this month, the premium jumps 48% ($26/month for $200K coverage). Is it normal that it increases this much at this relatively early age? I prefer to have term insurance until I retire at age 58 (most).

Anyone wants to share term life experience (rate/value) is appreciated.
Is $26/month the entire premium or the increase in the premium? See if the premium is reasonable on term4sale.com.
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Old 07-10-2015, 06:44 AM   #7
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Is $26/month the entire premium or the increase in the premium? See if the premium is reasonable on term4sale.com.
thanks for the link- that's a useful website.
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Old 07-13-2015, 05:52 PM   #8
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Yes, I have two young kids. Thank you all your advise.
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Old 07-13-2015, 05:59 PM   #9
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I have term through Banner Life. Pretty cheap but it's level term. I pay about $3300 for a $5million policy. Bought it 5 years ago and now in my early 40s.
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