LIFE INSURANCE

[farmbochur]

To put it in the words of Ben Feldman (paraphrasing): There are two types of problems, big ones, and small ones. The difference between the big problems and the small problems is, that you can swallow a small problem, but a big problem could swallow you.

Yup, that's why it's important to think of expected utility when purchasing insurance rather than expected value. Brings to mind this section of Derivatives Markets from the syllabus of actuarial exam MFE.

[ExGingi]

Yup, that's why it's important to think of expected utility when purchasing insurance rather than expected value. Brings to mind this section of Derivatives Markets from the syllabus of actuarial exam MFE.

Amazing how actuaries can plug non-mathematical data into a formula.

[AsherO]

A professional will listen to people? Lol. Look how hard it is in this thread for the professionals to listen to anything besides their own shpiel. KV"Ch any layman who goes to them will get a predtermined dissertation and pushed into something didnt want. Is it any wonder people are reluctant to go to salesmen for this kind of stuff?

You can’t compare generalized one-size-fits-most advice to customized professional advice based on specifics.

At the same time low cost term (even if the policy is for a smaller coverage amount) is the lowest-common-denominator that will give the surviving spouse a cushion and hopefully prevent them from becoming a charity case (no offense/judgement intended). The more barriers you put in place, the less likely people will pursue the “good enough” solution and get nothing.

How many people here buy takeout, fast food, etc. vs. eating healthy? Either way they aren’t hungry. Low cost term coverage is the equivalent here where it might not be the best, but it’s surely better than nothing.

[S209]

Where's that guy who read Thinking Fast and Slow? Paging @shmebeble

Me?

[Mordyk]

https://thechesedfund.com/vaad-ha-rabbanim/merontragedy

They are trying to raise $1mm for 45 families in total.

Comes out to $22k per family.  What exactly will it cover? The burial and then some?  (Math is off,  but point stands)

This is a horrific accident that left so many children without parents and women without husband's. If these men had life insurance (which I hope they did) then they will be set at least financially in this difficult time.


Yes I am using a tragedy as an example because it's fresh now. A tragedy doesn't pick and choose to affect only those with life insurance.

PLEASE GUYS GET SOME TERM LIFE INSURANCE THAT  SHOULD BE SO CHEAP.

AND MAY YOU NEVER NEED TO UTILIZE IT!

[yeshivabucher]

500k is almost $200/yr, ime. Could be I didn't shop around enough, but don't think it gets much lower. Not sure if 500k is considered reasonable coverage. 1M is $300/yr.

22-year-old healthy paying 236 for 10-year 1 million policy

[ExGingi]

22-year-old healthy paying 236 for 10-year 1 million policy

$1MM is often not much more than $500k. Price seems more or less right for a person that qualifies for best possible rating.

[ushdadude]

I met Albert Kahn over Shevuos. His mission is to increase awareness of the necessity of term life insurance and a living will which clearly indicates guardianship in case something happens to both parents chv"sh. He goes around to yeshivos arranging group policies. He is not an insurance agent.
interestingly, he mentioned that several companies not in NY offer all your money back at the end of the term policy. I'm not not sure which though

he is interviewed here
http://podcast.headlinesbook.com/e/718-20-show-281/
 

[yeshivabucher]

I met Albert Kahn over Shevuos. His mission is to increase awareness of the necessity of term life insurance and a living will which clearly indicates guardianship in case something happens to both parents chv"sh. He goes around to yeshivos arranging group policies. He is not an insurance agent.

he is interviewed here
http://podcast.headlinesbook.com/e/718-20-show-281/

hes an amazing person and he called me up out of the blue and its thanks to him i have insurance at all he assisted in choosing which type of plan and referring me to someone who he trust guide me through everything

[mushkovits]

interestingly, he mentioned that several companies not in NY offer all your money back at the end of the term policy. I'm not not sure which though

Not in NY meaning insured not in NY or insurer not in NY?
Any brokers with info on such policies?

[ExGingi]

Not in NY meaning insured not in NY or insurer not in NY?
Any brokers with info on such policies?

No companies licensed to sell in NY sell ROP term AFAIK. Which means if you live in NY you can't get it, unless you have nexus to a different state where it could be sold to you. (IMHO anything available for sale in NY is an indication of a stronger/safer product, as NY regulators are usually tougher than most other states).

Outside of NY it's also rather limited to a handful of companies. Of which Cincinnatti Life is the only one with an AM Best A+ rating that will write $1,000,000. One other company has a $300,000 maximum face amount for that product, and other companies are rated lower than A+. (total of 7 companies listed on my comparison software with a ROP product).

Low interest rates have made it rather hard to price competitively.

In certain instances one can create something close with a highly blended Whole Life (premiums might end up slighly higher, but much more flexible and better options).

[ushdadude]

I met Albert Kahn over Shevuos. His mission is to increase awareness of the necessity of term life insurance and a living will which clearly indicates guardianship in case something happens to both parents chv"sh. He goes around to yeshivos arranging group policies. He is not an insurance agent.
interestingly, he mentioned that several companies not in NY offer all your money back at the end of the term policy. I'm not not sure which though

he is interviewed here
http://podcast.headlinesbook.com/e/718-20-show-281/

he also mentioned that you must do auto-pay. if you miss one payment accidentally, they can cancel the policy

[shaulyaakov]

he also mentioned that you must do auto-pay. if you miss one payment accidentally, they can cancel the policy

Not exactly. The terms of the policy will specify, but I believe there's a 90 day look back window to reactivate.

[ushdadude]

Not exactly. The terms of the policy will specify, but I believe there's a 90 day look back window to reactivate.

i guess his point is that it's not worth the risk. if you miss one payment you can miss 3 too

[ExGingi]

Not exactly. The terms of the policy will specify, but I believe there's a 90 day look back window to reactivate.

Legally there's a 30 day grace period. Many companies will reinstate the policy with payment for another 30 days. Beyond that companies might have varying reinstatement requirements, that could involve various levels of underwriting.

[Abey]

No companies licensed to sell in NY sell ROP term AFAIK. Which means if you live in NY you can't get it, unless you have nexus to a different state where it could be sold to you. (IMHO anything available for sale in NY is an indication of a stronger/safer product, as NY regulators are usually tougher than most other states).

Outside of NY it's also rather limited to a handful of companies. Of which Cincinnatti Life is the only one with an AM Best A+ rating that will write $1,000,000. One other company has a $300,000 maximum face amount for that product, and other companies are rated lower than A+. (total of 7 companies listed on my comparison software with a ROP product).

Low interest rates have made it rather hard to price competitively.

In certain instances one can create something close with a highly blended Whole Life (premiums might end up slighly higher, but much more flexible and better options).

according to https://www.nerdwallet.com/article/insurance/return-of-premium-life-insurance it seems to be widely available?

[ExGingi]

according to https://www.nerdwallet.com/article/insurance/return-of-premium-life-insurance it seems to be widely available?

It lists Prudential as one of the companies supposedly offering it, yet

https://premierbrokerage.com/prudential-announces-return-of-premium-term-is-no-longer-available/

[Alexsei]

SoFi sent me a marketing email for term through Ladder
$500k term life insurance for $16/month
I actually went through the quoting process and it was closer to $15

[ExGingi]

SoFi sent me a marketing email for term through Ladder
$500k term life insurance for $16/month
I actually went through the quoting process and it was closer to $15

10 year term is usually the cheapest insurance out there. Often one might find that when buying $1MM the cost per thousand of insurance will be lower.

One should carefully consider the correct amount of insurance (i.e. the purpose of the insurance is to replace the earned income of a living person with unearned income, or cash flow - if capital is depletable).

[skyguy918]

SoFi sent me a marketing email for term through Ladder
$500k term life insurance for $16/month
I actually went through the quoting process and it was closer to $15

10 year term is usually the cheapest insurance out there. Often one might find that when buying $1MM the cost per thousand of insurance will be lower.

+1. Also, Ladder does supposedly have some measure of instant underwriting (potentially no bloodwork needed), but absent that, there are better companies with better rates for 10yr term (Guardian comes to mind).