Term Life Insurance - Best Rates with Decent Company?

[Jane_Doe]

Hey, Guys & Gals!

DH and I were just discussing the fact that we need to change up our life insurance. I am sure we are paying way too much - bought it from a (you guessed it!!) friend who is a Nationwide Broker. At the time, our finances and income were as such that a $100 a month difference didn't realy matter. Didn't shop around, etc. So, now we are looking to change up and save some of our resources (cold , hard cash, that is!).

Here is our info:

DH 53, Me 45, both non-smokers, both good but not excellent health. Don't anticiapte any problem being reinsured.

That being said, when you change policies, once the new policy "kicks in", is it then safe to cancel the old one? (This is one of my biggest concerns - getting a new policy and then, whoops - no you're not covered because ________ (fill in the blank with some lame LEGAL reason they can deny our claim). And, NO, we don't expect to collect if one of us were to murder the other.

Add'l. info: We don't need a LONG term policy (10 years should be PLENTY long)- once we sell our property, we will have no need for life insuarnce. Until then, I want it so that if one of us drops dead, the other will not be forced to sell the property. Most of our income is from rentals, so life insurance is kind of a luxury, vs. neccessity. But, keep in mind we would both need to pay someone to fill in for misc. duties (ex., DH does all maintenance and I do all bookwork). Bottom line, I will sleep better keeping a policy in force for now. And again, FYI, we are currently paying $235 a month for 500 k on DH and 250k on me. Some of that is in a -OMG- Universal policy (and I know better!!) :P Did I mention that we bought from an old friend ............

Now, for your input -

Who do you use for an insurance carrier and what are your costs/pol amts.? (If you don't mind sharing). I guess I need to know this from people with similar ages and/or those who have re-upped recently (since IIRC old policies are based on the age at which you signed up). I would like to deal with a "known" insurer - not someone obscure, if that makes sense!

Ok, I think that's the whole scoop!

Thanks for any input or help you may give me!!

Jane

[simple girl]

We are a few years younger but just upgraded last year. Here's our info, FWIW.

20 year, term life policy
for myself, bought @ age 38: $250K coverage for $205 a year
for DH bought @ age 42: $365K coverage for $360.25 a year

Carrier is First Colony. We used a broker to compare different quotes (broker is Select Quote). They can probably offer advice as to when it is safe to cancel your old policy.

[brewer12345]

Jane, I would start bt getting quotes on a term policy from TIAA-CREF, USAA, Ameritas Direct and Protective Life (aka West Coast Life). All are solid, cheap companies that sell direct. I would also shop these guys against a select quote type internet shop, but if the companies I named give youa decent orice, go with one of them.

I would just wait a few months after you have the new policies to cancel the old one.

[Jane_Doe]

Hey,

Just checking in - Thanks Brewer & Simple Girl for the quick replies - both excellent leads which we will start w*rking on this week. :P

Jane

[Peaceful_Warrior]

I used Intelliquote.com for my recent Term Life purchase. I was very impressed with their service -- they did a pre-screening on the phone to help me choose a broker that would be the best match for me.

In my case, they recommended American General, whom was $3 more per month than the other two insurance companies, but they had an additional premium class so *if* I got knocked down for any reason, I had an additional option that would still be less costly than other carriers.

Also, American General was rated very highly (Intelliquote.com displays the ratings of each company that they recommend to you).

My info probably won't be much help since I'm 29, but I got a 20 year $1,000,000 term policy for $53/month. I figure that's enough (along with some existing Whole Life and Term policies) to cover my wife and child if anything happens to me so that she wouldn't have to work.

[Independent]

Term life rates vary by underwriting "class". Lots of companies have "standard non-smoker" and then "preferred" classes for even better risks. You don't know for sure which class you'll be in until they've done a para-med exam (usually including a blood draw) and had a home office underwriter make a decision.

So be aware of the possibility that someone may give you a "quote" of their best rate, get an application, then come back with an actual offer of a higher rate. Of course you can refuse that offer and move on to another company.

www.insure.com will give you sample rates with some indication of classes. I'm not vouching for any of those companies, but insure.com does give you some financial rating information.

Note that their "Instant Quote" screen asks for a name and address, but I got it to run without filling in those fields.

[Goonie]

Originally Posted by Independent

www.insure.com will give you sample rates with some indication of classes. I'm not vouching for any of those companies, but insure.com does give you some financial rating information.

A few years ago I used insure.com to find the term life I was looking for. Ended up getting it through American Life.....10yr/$100k/$26 mo. 8)

[Jane_Doe]

Peaceful, Inde & Goonie,

Thanks for the input - I will look into these as well. Goonie - what is your age? (if you don't mind me asking!)

Jane (who is not watching football!)

[brewer12345]

Jane, FWIW, I would be picky about which companies you do business with. Not all A rated carriers are equal. I specifically will never do business with AIG or any of their properties (including American General).

[Jane_Doe]

Thanks Brewer -

I appreciate the heads up! I have a lot of paper work today and was going to ask dh to do start investigating the new life insurance today but he is feeling ill. So, it is on hold at least till tomorrow. WHen I do end up with some info, I will let you guys know online hear about it so you can help me some more!

Thanks one and all!

Jane

[SecondCor521]

Jane,

I bought a $500k 20 year level term policy from John Hancock several years ago. I was in my early 30's and the premium was maybe $15-$20 a month. I found them through one of the online quote services (www.insure.com, www.intelliquote.com, or somesuch) but then dealt with them directly. They were among the lowest in rates and were highly rated by the rating agencies (S&P, etc.). I found them to be excellent in all regards -- their policies were understandable even to a layman, everything was straightforward, their customer service was excellent, etc. They keep a low profile but are very good in my opinion. I think they can be reached at http://www.johnhancock.com/

2Cor521

[brewer12345]

Originally Posted by SecondCor521

John Hancock

Now owned by a mammoth Canadian insurer (Manulife).

[Goonie]

Originally Posted by Jane_Doe

Goonie - what is your age? (if you don't mind me asking!)

49...will hit 50 in April.

[Peaceful_Warrior]

Considering I just started a policy with American General, I'm particularly interested in why AIG is one company you wouldn't do business with.

Is it from personal experience, or from people you know, or stuff you've read elsewhere like articles/forums/etc?

Originally Posted by brewer12345

Jane, FWIW, I would be picky about which companies you do business with. Not all A rated carriers are equal. I specifically will never do business with AIG or any of their properties (including American General).

[brewer12345]

Originally Posted by Peaceful_Warrior

Considering I just started a policy with American General, I'm particularly interested in why AIG is one company you wouldn't do business with.

Is it from personal experience, or from people you know, or stuff you've read elsewhere like articles/forums/etc?

Sleazy, aggressively run company with a culture that can most readily be compared to a physically/emotionally abusive family. They may be big, but they sure are aggressive and the life entities are generally run with the knobs turned all the way to the right. Not people I ever want to do business with, especially with something as commoditized and important to me personally as a life insurance policy. All IMO based on personal and professional experience.

Having said t hat, there is probably de minimus credit risk related to your policy. But if one is shipping around, they are a company I would skip in favor of a mutual insurer or someone with better ethics like Protective.

[sailor]

Originally Posted by brewer12345

Jane, FWIW, I would be picky about which companies you do business with. Not all A rated carriers are equal. I specifically will never do business with AIG or any of their properties (including American General).

Yeah,
but they (AIG) were the only ones I was able to find, which would give airplane pilots "preferred" rates (usually pilots get standard or even worse rates). The difference was substantial - I have 15 years .5mil term life for around $300 annually , most of the other carriers started their quotes at around $500 per year and most needed inconvenient riders for flying.