LIFE INSURANCE

[ckmk47]

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.

In a 30 year term they add up all the premiums a person would pay over 30  years as he ages.  Then divide it by 30 years to know the annual payment.
So it may have higher monthly payments to start, but will not change for the duration.
The advantage, is that young healthy people have the lowest premiums.


If you need more insurance as life goes on, ADD another policy to top off the one you already have.

[ushdadude]

Ask yourself if you're adequately protected:

i've seen similar. but would basing coverage on monthly expenses make more sense?

[yos9694]

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.

They only get a "report" when you buy it, not in any subsequent years. You're getting quotes for Guaranteed Level Premium Term, and the name can be taken quite literally. During the term period you choose (e.g. 30 years) the premium you need to pay will not change. There's no tricks, and I'm not sure how to make it any clearer to you.

[Yehuda57]

i've seen similar. but would basing coverage on monthly expenses make more sense?

Yup, and this cuts both ways. If you're earning significantly more than you need for expenses, you won't need this amount of insurance, and according to this if one spouse has a low income due to staying home to take care of children/the home they will be underinsured if G-d forbid they pass away and the other spouse now has to reduce their income to work less and/or hire people to do much of that work.

[ExGingi]

i've seen similar. but would basing coverage on monthly expenses make more sense?

Why so?

Do you stop working once you've earned enough to cover your expenses? Or do you give away all the excess income? Does anyone know what future expenses might be?

[ushdadude]

Why so?

Do you stop working once you've earned enough to cover your expenses? Or do you give away all the excess income? Does anyone know what future expenses might be?

i guess the thinking is, why pay for more insurance than you actually need?but i guess term is cheap enough that over estimating is not as big a deal.

[Lurker]

Why so?

Do you stop working once you've earned enough to cover your expenses? Or do you give away all the excess income? Does anyone know what future expenses might be?

I think it's more applicable when you're not currently making enough to cover your expenses or when you currently have some expenses subsidized (Medicaid, scholarships, etc.).

[ckmk47]

Why so?

Do you stop working once you've earned enough to cover your expenses? Or do you give away all the excess income? Does anyone know what future expenses might be?

If someone makes $1 million a year, but spends $100,000 on  his lifestyle.
Insure him to replace $100,00 not $1M.

[Yehuda57]

Why so?

Do you stop working once you've earned enough to cover your expenses? Or do you give away all the excess income? Does anyone know what future expenses might be?

Firstly, this only discusses over insuring, not under insuring, which I'm surprised you wouldn't jump on. Secondly, insurance is not vital to cover extra. If anything, that extra could be put to use to create your own "insurance".

[AsherO]

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

Keep in mind this is their current banded pricing, and the then-current premium chart is likely to increase compared to what they're charging now. So e.g. when you're 65 they might charge $400/month to ensure you through age 69 even though the currently published premium is $231.30/month.

If you get a 30-year term quote from term4life then that quote is for a level-premium policy, meaning the premium doesn't go up for the entire term.

[ExGingi]

If someone makes $1 million a year, but spends $100,000 on  his lifestyle.
Insure him to replace $100,00 not $1M.

I guess you don't make $1,000,000 in earned income.

[Lurker]

I guess you don't make $1,000,000 in earned income.

To be fair, the conversation is focused on term. I think you'd agree that buying a term policy to replace $1MM in income wouldn't be the smartest play, as that money would be better going towards a WL policy or other saving/investment plans.

[yos9694]

If someone makes $1 million a year, but spends $100,000 on  his lifestyle.
Insure him to replace $100,00 not $1M.

I'd tell that person good job on managing Olam Hazeh, and to plan to self-insure (might take 3-4 years at that rate).

[aygart]

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.

As an aside, you have people who are insurance brokers right here on this site answering a bunch of your questions for you. Maybe you should consider giving them the business or at the very least giving them a chance at it.

[ah giten]

My agent told me recently that prices of WL policys are going to increase by 15-25% in the near future.

True?
Is that another side effect of Covid? If so why only WL?

[ExGingi]

My agent told me recently that prices of WL policys are going to increase by 15-25% in the near future.

True?
Is that another side effect of Covid? If so why only WL?

It's due to changes to section 7702. Companies can no longer use 4% as the guaranteed rate in calculating reserves. They have to use lower rates (and for the first time they get to choose which rate they will use for each product, which might result in offerings being a lot more varied between companies), which will obviously require higher premiums to fund the required reserves.

[ExGingi]

I'd tell that person good job on managing Olam Hazeh, and to plan to self-insure (might take 3-4 years at that rate).

I never thought I'd get to use the same hashtag within the hour on totally different threads on DDF.

#Academics_vs_Real_World

[yos9694]

My agent told me recently that prices of WL policys are going to increase by 15-25% in the near future.

True?
Is that another side effect of Covid? If so why only WL?

They'll all go up by January, but not all by that much. There are different flavors of WL too, and the ones that are more investment focused will go up by more than the ones that are lowest cost focused. In general, the WL that has you paying premium for lifetime will not go up in cost by as much as the WL that is designed to be fully paid up sooner.

[ExGingi]

They'll all go up by January, but not all by that much. There are different flavors of WL too, and the ones that are more investment focused will go up by more than the ones that are lowest cost focused. In general, the WL that has you paying premium for lifetime will not go up in cost by as much as the WL that is designed to be fully paid up sooner.

Will it make UL (for cash value accumulation) more lucrative? Allowing greater non-MEC premiums, while not having the guarantees of WL?

[Yosel]

They'll all go up by January, but not all by that much. There are different flavors of WL too, and the ones that are more investment focused will go up by more than the ones that are lowest cost focused. In general, the WL that has you paying premium for lifetime will not go up in cost by as much as the WL that is designed to be fully paid up sooner.

anywhere between 25% to 80% increase in annual premium, depends which company, and type of WL policy