Term Life Buying Tips
I received an ad with my credit card statement. In big
bold print it says $1.00 buys $50,000 life insurance. Of coarse
there is an *. The * means first month then as low as
$3.49/mo. Still sounds pretty good, so I decided to investigate
further. I went to their website and looked at their sample
policy. It turns out that the $3.49 is for a
$5,000 policy and it goes up on 2010, 2015 etc every five
yrs. But this is 2009 so your first increase comes next year. I ran
some quick quotes on my term life. $50,000 is the smallest face
amount most companies will quote. As you can see it doesn't
cost much more to go to a $100,000, 20 times what the credit card offer was, and
this is Level Term for just a
few dollars more.
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Example of Term Life Best Preferred
Female Non-Smoker 18 - 25
|
|
Face
Amount
|
10
Year
|
20
Year
|
30
Year
|
20 Year
ROP
|
Cash
Back
|
30 Year
ROP
|
Cash
Back
|
|
50,000
|
6.21
|
7.31
|
7.83
|
12.04
|
2,889.60
|
9.79
|
3,524.40
|
|
100,000
|
7.26
|
8.93
|
9.80
|
13.04
|
3,129.60
|
12.60
|
4,536.00
|
|
250,000
|
9.19
|
11.81
|
15.75
|
19.91
|
4,778.40
|
19.91
|
7,167.60
|
|
Example of Term Life Best Preferred Male
Non-Smoker 35
|
|
Face
Amount
|
10
Year
|
20
Year
|
30
Year
|
20 Year
ROP
|
Cash
Back
|
30 Year
ROP
|
Cash
Back
|
|
50,000
|
6.43
|
8.18
|
11.16
|
16.29
|
3,909.60
|
14.12
|
5,083.20
|
|
100,000
|
7.61
|
9.71
|
12.78
|
18.20
|
4,368.00
|
17.85
|
6,426.00
|
|
250,000
|
10.28
|
13.13
|
23.41
|
27.34
|
6561.60
|
34.34
|
12,362.40
|
Not all people can qualify for the above plans.
For this reason I have included simplify issue pricing. Unlike the
credit card offer these are level term. They have a $15/mo minimum premium
so the smaller face amount aren't available for the younger age groups.
The maximum face amount on these plans is 200,000
Why pay for high priced simplified issue life
insurance if you can qualify for standard life
insurance?
|
Example of Term Life Simplified Issue
Female Non-Smoker 18 - 25
|
|
Face
Amount
|
10
Year
|
20
Year
|
30
Year
|
20 Year
ROP
|
Cash
Back
|
30 Year
ROP
|
Cash
Back
|
|
50,000
|
NA
|
NA
|
NA
|
NA
|
NA
|
15.54
|
5,010.00
|
|
100,000
|
NA
|
18.70
|
21.39
|
26.32
|
6,316.00
|
23.72
|
7,650.00
|
|
150,000
|
15.21
|
28.54
|
32.09
|
39.48
|
8,490.00
|
35.58
|
11,475.00
|
If doing return of premium (ROP) always do 30 year
term if available. Their is vary little difference in cost and in
these examples the price was the same or less.
This shows why it is so important to
deal with a local agent. You should never buy insurance mail order.
A local agent can find you the best possible plan for your situation at the best
possible price. Call Affordable Insurance Pro for help on determining the
best policy for
you.
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