LIFE INSURANCE

[ExGingi]

why hire someone and pay hundreds to get just couple of basic advice on our $150k basic term life coverage?

Especially in your set of circumstances, seeking free advice on an anonymous online forum is probably penny smart and pound foolish.

When a potential beneficiary has a disability or any other type of special circumstance, proper care and planning needs to take place so as not to actually do something that could be detrimental to said beneficiary.

We don't have other wealth to get advice from a pro.

So you have no income, no assets and no expenses whatsoever? Nothing going on in the financial side of your life other than 150k of basic term insurance?

[Lurker]

why hire someone and pay hundreds to get just couple of basic advice on our $150k basic term life coverage?
We don't have other wealth to get advice from a pro.

IINM, there are many professionals who would have a quick chat for free. It may help give you ideas of what you actually need or should be doing. Even if it does end up costing you a little, that investment may be the best one you ever make.

IMO, $150k isn't enough for most people, let alone one with a special needs child. There may be better products out there within your budget.

ETA: organizations which cater to special needs children and/or families may have some great resources and solutions for people in your exact situation. I'd definitely recommend making a few calls to see if they can assist you.

[yos9694]

why hire someone and pay hundreds to get just couple of basic advice on our $150k basic term life coverage?
We don't have other wealth to get advice from a pro.

I agree with you that the basic life insurance you have is not a good reason to go speak to a pro.

The reason you need to speak to a pro is because you have a child with autism, and you need to set something in place that will ensure he (or she) is taken care of if you and your wife are ever not able to, challilah. It sounds like you don't have a plan for that. You need to have one.

After you have a plan, the answer of who should be named contingent beneficiary will probably become obvious.

[ExGingi]

I agree with you that the basic life insurance you have is not a good reason to go speak to a pro.

I am having a hard time with the term "basic term life insurance".

What makes life insurance basic vs non-basic?

Is it the amount? The reason for purchase? Or anything else? How is the amount of "basic" life insurance determined? Is it just whatever one can easily get under a certain program, whether it is a suitable amount or not, whether it is priced well or not?

The only "basic" life insurance I am aware of is 50,000 in employer paid group term which can be given as a non-taxable benefit.

[whacked1]

Especially in your set of circumstances, seeking free advice on an anonymous online forum is probably penny smart and pound foolish.

When a potential beneficiary has a disability or any other type of special circumstance, proper care and planning needs to take place so as not to actually do something that could be detrimental to said beneficiary.

Would a policy payout affect medicaid ? Or is that excluded?

[ExGingi]

Would a policy payout affect medicaid ? Or is that excluded?

Under current ACA rules the only thing that matters for (regular) Medicaid is AGI. So if it's not taxable income it shouldn't affect (regular) Medicaid. Medicaid for LTC might have different rules.

However, SSI, SSDI, and other benefits/programs might be affected. There's a lot more to plan for when talking about an individual with special needs.

[yos9694]

I am having a hard time with the term "basic term life insurance".

Because you're a pro. You want to stick to proper terminology and syntax, but everyone else is comfortable with colloquialisms. Basic LI to me means low cost protection coverage, the kind that's a no-brainer for anyone with income and dependents. No complex coverage strategies or investment goals. I don't recall that he asked us if the face amount is sufficient, only how to set up benes.

[ExGingi]

Because you're a pro. You want to stick to proper terminology and syntax, but everyone else is comfortable with colloquialisms. Basic LI to me means low cost protection coverage, the kind that's a no-brainer for anyone with income and dependents. No complex coverage strategies or investment goals. I don't recall that he asked us if the face amount is sufficient, only how to set up benes.

The fact that the question was not asked, doesn't mean that anyone that knows something about it, whether a professional or not, shouldn't point out the issue that sticks out like a sore thumb. And if it's heard from many, maybe attention will be paid to that.

And if "basic LI" means "low cost protection" does the coverage described fit that definition?

And as you said, "a no-brainer for anyone with income and dependents", which would mean that it is highly dependent on the current income (and age). Without that bit of information, the discussion is pointless (obviously not asking anyone to disclose personal income information online, but a person should be aware of the relationship between the death benefit purchased and the current income).

[peace123]

I looked at the term4sale website that you guys recommended. I checked what the rate will be 30 years term in my age and shows around $45 a month premium. But it doesn't tell me if it is a guaranteed same monthly rate for 30 years or will increase every 5 years like what we have now. Can anyone answer that? Then when I select a company, it takes me to lawyer's contact info and page.

Regarding the beneficiary designations, I will just add spouse as the primary and our son as the contingent beneficiary for now and later when I can speak to a probono lawyer who practices in special needs trust plannings, I will know whether to or how to add a trust that can claim the benefit for our autistic child. Thanks

[ExGingi]

I looked at the term4sale website that you guys recommended. I checked what the rate will be 30 years term in my age and shows around $45 a month premium. But it doesn't tell me if it is a guaranteed same monthly rate for 30 years or will increase every 5 years like what we have now. Can anyone answer that? Then when I select a company, it takes me to lawyer's contact info and page.

Regarding the beneficiary designations, I will just add spouse as the primary and our son as the contingent beneficiary for now and later when I can speak to a probono lawyer who practices in special needs trust plannings, I will know whether to or how to add a trust that can claim the benefit for our autistic child. Thanks

The rates you see on term4sale for 30 years are guaranteed a for 30 years. Banded rates like what you posted above are usually a feature of group term products.

Term4sale is a website built by a company that produces quote aggregation software. They don't sell insurance, they will refer you to one of their subscribers based on your zip code in order to complete the purchase. That subscriber is a licensed life insurance professional that might be able to give you good guidance.

[peace123]

The rates you see on term4sale for 30 years are guaranteed a for 30 years. Banded rates like what you posted above are usually a feature of group term products.

Term4sale is a website built by a company that produces quote aggregation software. They don't sell insurance, they will refer you to one of their subscribers based on your zip code in order to complete the purchase. That subscriber is a licensed life insurance professional that might be able to give you good guidance.

Are you certain that the monthly premium rate I see on term4sale rate is going to be the same rate and won't increase as I turn older?
My current plan has lower rate, $8 lower then what I see on term4sale but my rate increases every 5 years and so if i turn 60, it will be so much more so if what you are saying is true that the rate on term4sale website is going to be the same rate until the end of the plan terms, then term4sale wesbite rate will be significantly lower then my plan rate in coming years. I don't know why my plan rate is more expensive then the rates on term4sale? I thought we got cheaper or better plan and pricing becos the insurance is sold by a company called unionplus and they say they have negotiated  better pricing  with unions across America.
 
below is the rate chart below on my current plan
The Term-to-70 Life Insurance plan offers rates in 5-year age bands. All premiums are based on each person’s smoking status and age at time of issuance and change when the person attains a new age bracket.

You are considered a non-smoker if you have not smoked cigarettes or cigars, or used a pipe, chewing tobacco, nicotine products or snuff during the 12 months before applying for insurance.
Non-smoker monthly rates   Age    $50,000    $100,000    $150,000
18-29    $4.50    $9.00    $13.50
30-34    $4.70    $9.40    $14.10
35-39    $5.60    $11.20    $16.80
40-44    $7.80    $15.60    $23.40
45-49    $12.10    $24.20    $36.30
50-54    $18.60    $37.20    $55.80
55-59    $30.40    $60.80    $91.20
60-64    $48.80    $97.60    $146.40
65-69*    $77.10    $154.20    $231.30

[peace123]

Under current ACA rules the only thing that matters for (regular) Medicaid is AGI. So if it's not taxable income it shouldn't affect (regular) Medicaid. Medicaid for LTC might have different rules.

However, SSI, SSDI, and other benefits/programs might be affected. There's a lot more to plan for when talking about an individual with special needs.

SSI is PIA program. They count parent's income and if you have more then $2k or more in bank account, they stop the payment and they demand overpayment. It is only good if you have a disabled or autistic child and you are almost homeless with less then $2k in your bank account. which family doesn't have at least $2K in checking or saving in America? None. They count income too and you have to report income every month via phone or the app.  When we bought our condo and had to spend our money on down payment and things we needed to buy, we applied for SSI at the local office and very long wait and they want 6 months of everyhting you have. We received  couple of payment for couple of weeks but had to pay back all due to  over payment and we realized we won't qualify for it. I think SSI is only good once the disabled or autistic child becomes older or 18 or more and I think  from that age, they don't count parent's resources and if the child can't perform or earn a living, then they qualify for SSI.

[ExGingi]

Are you certain that the monthly premium rate I see on term4sale rate is going to be the same rate and won't increase as I turn older?

Yes. I am 100% certain.

But why in the world would you ask this question here? What would it take from you to follow through with the Life Insurance professional to whom you were referred by term4sale.com?

What's the worst that would happen?

That he or she would talk you into buying more insurance than you currently think you need (I don't know what amount of insurance you are pricing at term4sale, but if you're not getting the right multiple of your income based on your age, then you should re-evaluate)?

That they will bait and switch you (highly unlikely)?

You are always free to back out, to hang up the phone, or anything else you want to do, but you took the first correct step in getting coverage, why wouldn't you continue down that path?

My current plan has lower rate, $8 lower then what I see on term4sale but my rate increases every 5 years and so if i turn 60, it will be so much more so if what you are saying is true that the rate on term4sale website is going to be the same rate until the end of the plan terms, then term4sale wesbite rate will be significantly lower then my plan rate in coming years. I don't know why my plan rate is more expensive then the rates on term4sale? I thought we got cheaper or better plan and pricing becos the insurance is sold by a company called unionplus and they say they have negotiated  better pricing  with unions across America.

While I probably could explain this, I will leave it to @yos9694 to explain to you, since that is more of his field.

[ExGingi]

I think SSI is only good once the disabled or autistic child becomes older or 18 or more and I think  from that age, they don't count parent's resources and if the child can't perform or earn a living, then they qualify for SSI.

And getting a death benefit could kill (no pun intended) the eligibility.

[yos9694]

Are you certain that the monthly premium rate I see on term4sale rate is going to be the same rate and won't increase as I turn older?

Yes. 100% certain.

My current plan has lower rate, $8 lower then what I see on term4sale but my rate increases every 5 years and so if i turn 60, it will be so much more so if what you are saying is true that the rate on term4sale website is going to be the same rate until the end of the plan terms, then term4sale wesbite rate will be significantly lower then my plan rate in coming years. I don't know why my plan rate is more expensive then the rates on term4sale? I thought we got cheaper or better plan and pricing becos the insurance is sold by a company called unionplus and they say they have negotiated  better pricing  with unions across America.

1. If you're interested and willing to listen to some inside baseball, there are at least several folks who can explain "why".
2. "They say" isn't gospel. Better is a relative term. Are your rates better than group rates through a different party? Possibly. Are the rates better than an individual plan for a fully underwritten healthy person? No.

[ExGingi]

I signed up for this term life at age 41 and rate was $26 a month. Now I turned 45 and rate increased to $36. That is $13 increase. They say rate will increase every 5 years of our age. Same type of 5 years increases on my wife's policy though woman's rate is little lower. Our last rate increase will be at age 65 and then term policy will end at age 70. They say they can't tell me what the increase amount will be every 5 years.  I don't think this is a group insurance plan. This company called unionplus.org provides insurance though Hartford life insurance company. They say they sell insurance products to any union member of any union. But they are not affiliated to any union groups and we are not paying our premium through union membership. We just pay on our own.
Can I add our child to our life insurance policy as beneficiary?

Ask yourself if you're adequately protected:

[shwarmabob]

Term4sale is a website built by a company that produces quote aggregation software. They don't sell insurance, they will refer you to one of their subscribers based on your zip code in order to complete the purchase. That subscriber is a licensed life insurance professional that might be able to give you good guidance.

you can also check quotes from policygenius.com

[ExGingi]

you can also check quotes from policygenius.com

The difference is that policygenius is a broker selling insurance, while term4sale is just a shopping engine and sells nothing to consumers, they will connect you with a broker.

The most unbiased term life insurance quotes and comparisons are found at TERM4SALE.com  because TERM4SALE® does not sell term insurance. TERM4SALE® is owned by COMPULIFE® Software, Inc. which sells life insurance comparison software to thousands of life agents throughout the U.S. and Canada.

[ExGingi]

I signed up for this term life at age 41 and rate was $26 a month. Now I turned 45 and rate increased to $36. That is $13 increase. They say rate will increase every 5 years of our age. Same type of 5 years increases on my wife's policy though woman's rate is little lower. Our last rate increase will be at age 65 and then term policy will end at age 70. They say they can't tell me what the increase amount will be every 5 years.  I don't think this is a group insurance plan. This company called unionplus.org provides insurance though Hartford life insurance company. They say they sell insurance products to any union member of any union. But they are not affiliated to any union groups and we are not paying our premium through union membership. We just pay on our own.
Can I add our child to our life insurance policy as beneficiary?

Did you use the term4sale life insurance needs calculator?

https://www.term4sale.com/life-insurance-calculator.php

[peace123]

Did you use the term4sale life insurance needs calculator?

https://www.term4sale.com/life-insurance-calculator.php

I did use their calculation. If the monthly premium rate stays the same , their monthly premium rate will be significantly lower  when I turn 50 in 5 years . I guess it is cheaper then my rate plan  cos they require health exam or doctor’s report? And if the report they want to see every few years is not good then can drop you or increase the premium?Otherwise why monthly premium rate will be same for the next 30 years if it is a 30 years term. Just curious and wondering before I decide to call the agent that is on term4sale website.