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changing life insurance
Old 03-19-2009, 07:31 PM   #1
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changing life insurance

current policy: AIG, 30 yr, term with return of premium, $250k, $34/month, started about 18 months ago. I didn't really know what I was doing when I bought it. Now I have a better idea about these things, I'm considering either:

1) $500k, 15 yr for $17/month, straight Term.
2) $500k, 20 yr for $23/month, straight Term.
3) $400k, 15 yr for $14/month, straight Term.
4) $400k, 20 yr for $20/month, straight Term.

All with ING.

what's your take on these? I'm leaning towards #1. I'm kind of cheap when it comes to these things. To me, it's simply for a peace of mind.

My kids are 8 and 6 (so 23 and 21 in 15 yrs). still owe $120k on the house but should be free and clear in 12 yrs if no major personal financial disaster.
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Old 03-20-2009, 05:36 AM   #2
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With all due respect, there is only a $9 per month spread between the highest and lowest premium so it really doesn't matter (to me) which one you choose.
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Old 03-20-2009, 05:55 AM   #3
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1) Pick a better insurer than ING

2) I'd do the 20 year 500k option since it costs so little extra.
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Old 03-21-2009, 09:27 AM   #4
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Originally Posted by brewer12345 View Post
1) Pick a better insurer than ING
Can you explain why ING would not be a good insurer? I'm pretty clueless when it comes to insurance company. It was quoted by an agent and intelliquote .com. thanks. I think someone in another thread mentioned west coast, is it a reliable company?
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Old 03-31-2009, 01:29 AM   #5
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because term is dime a dozen(basically a commodity) and ING is not even close to one of the cheapest out there. Go to an independent broker and get them to aggregate a bunch of companies against each other. But go for the 20 year so that your kids are at least out of college. I don't know your income or situation so I can't comment on how much you need or want, but assuming you don't make a below average income, the 500K will probably be on the low end of what is needed to replace your income. Actually the FIREcalc that these guys invented is essentially the same for early retirement as it is for death. Use that and type how much income you will need to replace, the face amount, and the amount of years that it will be needed for(use until retirement age for that). The goal is to get to a withdrawal rate of 4% or less.
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Old 03-31-2009, 03:58 AM   #6
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Hopeful, I'm sure you know to complete the process - including underwriting - before dropping the old policy. 'xcuse me if I'm treating you like my kid here.

Guess if it were me, I'd go for 1mil if you can get it at these prices. Just me.
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Old 03-31-2009, 04:32 AM   #7
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Quote:
Originally Posted by ER_Hopeful View Post
current policy: AIG, 30 yr, term with return of premium, $250k, $34/month, started about 18 months ago. I didn't really know what I was doing when I bought it. Now I have a better idea about these things, I'm considering either:

1) $500k, 15 yr for $17/month, straight Term.
2) $500k, 20 yr for $23/month, straight Term.
3) $400k, 15 yr for $14/month, straight Term.
4) $400k, 20 yr for $20/month, straight Term.

All with ING.

what's your take on these? I'm leaning towards #1. I'm kind of cheap when it comes to these things. To me, it's simply for a peace of mind.

My kids are 8 and 6 (so 23 and 21 in 15 yrs). still owe $120k on the house but should be free and clear in 12 yrs if no major personal financial disaster.
I would go with the 500k 20 year for 23 bucks. This will give you room to breath when it approaches time to retire. You may want to continue it to protect DW. The rate looks pretty good.

Also, check AM Best Insurance guide to see how ING rates. You should have no problem as your state insurance commission should have a guarantee fund in the very rare instance that a life insurer should go belly up. Even had AIG went belly up, those insured for life, annuities,etc would have been covered. However, I don't think any life insurers are going belly up any time soon, now that AIG has been exposed, state insurance regulators are looking at these companies much more closely.

jug
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Old 03-31-2009, 10:52 AM   #8
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AIG
I currently have a term policy with AIG.
Any reason to change insur. companies with all the AIG troubles?
I think im paying a fair price for my coverage...just want to make sure
they pay if needed.
thanks...
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