Term Life Insurance

[skives]

Where did/do you go for your term life insurance? Online or local?

my wife and I are currently on 30 year terms through a local State Farm agent. I think maybe we could get a better rate online. We have been in our current policy for 4 or 5 years now. Should we look online for a better deal?

[disneysteve]

Online. Unless your situation is complex for some reason, like pre-existing medical conditions, there is no benefit to using an agent. Go to Select Quotes or somewhere similar. Type in your info and it will spit out a list of options to choose from. It's been a while but I think I used AccuQuote for mine.

Buying online also eliminates the annoyance of a salesperson contacting you regularly to "check in" and try to sell you other stuff. You will get emails from the online places but you can just delete those or mark them as spam so they go in your spam folder.

[kork13]

Buying online also eliminates the annoyance of a salesperson contacting you regularly to "check in" and try to sell you other stuff. You will get emails from the online places but you can just delete those or mark them as spam so they go in your spam folder.

Funny enough, the million emails from insurance outfits is exactly why I chose to NOT shop around online. I knew a reasonable cost for DW & I based on our general circumstances, google searches, and the group policy I already had through work... I checked with our primary insurer, it was "close enough", and we went with them. Clean & simple. Probably at least $5/mo overpriced relative to what I could get, but I prefer simple.

[ua_guy]

I'm going to ask what is probably a stupid question: What is term life insurance, and why would you want that versus something offered through an employer?

The only life insurance we've had is through work, and it's a multiplier of salary. We don't have kids so I guess we figured we never would really need more than that. What am I missing out on?

[kork13]

I'm going to ask what is probably a stupid question: What is term life insurance, and why would you want that versus something offered through an employer?

The only life insurance we've had is through work, and it's a multiplier of salary. We don't have kids so I guess we figured we never would really need more than that. What am I missing out on?

If both of you work and/or are able to be self-sustaining if the other were to pass, probably nothing. Life insurance is there to provide life-sustaining funds to family or others reliant upon your income or other support.

Term life insurance is the most basic (and practical) form of life insurance. You set the term (20, 30, etc. years), and the company gives you $XXXk in coverage. As long as you continue to pay the premiums & the term hasn't expired, then you're covered by the policy in the event that you 'expire'.

I'm married with 3 kids, and they're reliant on my income. If I died, it would take roughly $1M to securely provide for their needs ($4k-$6k/mo) into the indefinite future. So I have $1M in coverage for myself ($500k through work, $500k on a private policy. Although my wife only earns $2k/mo & my family could survive on my income alone if she died, I would need at least $35k/yr to hire Mary Poppins (people to provide childcare & household support -- cleaning, etc.). So I've got a $500k policy for DW.

Some people think they should have coverage on their kids. I respectfully disagree -- kids don't provide financial/material support the family. So all I have on them is a basic $10k/child coverage that is included with my policy at work -- enough only to cover burial costs. If it wasn't included at no extra cost, I wouldn't have those ones at all.

One consideration for having your life insurance through work vs. a private policy is that if your leave your job for whatever reason, you typically can't keep that insurance. So you either lose the coverage or need to shop for a new policy ... And life insurance gets more expensive the older you get. So getting a private policy setup in your 20s/30s can provide cheaper coverage over a long (20-30yr) term.

[Fishindude77]

Funny enough, the million emails from insurance outfits is exactly why I chose to NOT shop around online. I knew a reasonable cost for DW & I based on our general circumstances, google searches, and the group policy I already had through work... I checked with our primary insurer, it was "close enough", and we went with them. Clean & simple. Probably at least $5/mo overpriced relative to what I could get, but I prefer simple.

I'm the same way.
Always prefer to deal with a "human" whenever possible -vs- online.

[disneysteve]

I'm the same way.
Always prefer to deal with a "human" whenever possible -vs- online.

Total opposite here. Any time I can avoid a salesperson I will. Investing. Insurance. Car dealer. I do as much of it as possible online. And I will always pick self checkout when shopping if it’s an option.

[kork13]

I'm the same way.
Always prefer to deal with a "human" whenever possible -vs- online.

Total opposite here. Any time I can avoid a salesperson I will. Investing. Insurance. Car dealer. I do as much of it as possible online. And I will always pick self checkout when shopping if it’s an option.

I'm actually the same as Steve here -- I hate salesmen, and actively avoid them. However, in this case I was able to get a quote on my insurer's website, all the paperwork online, and the only human interaction was the quick medical exam they required. As I said, I like simple.

[disneysteve]

I'm actually the same as Steve here -- I hate salesmen, and actively avoid them. However, in this case I was able to get a quote on my insurer's website, all the paperwork online, and the only human interaction was the quick medical exam they required. As I said, I like simple.

I'm good with that sort of system. As long as I never have to actually interact with the salesperson, it's all good. I would still encourage you to at least get quotes from an online-only service so you know what prices you're comparing to.

[skives]

Has anyone heard of Haven Life? Apparently they are part of Mass Mutual. Their offer for my wife and I was half what we are paying now. Granted that’s before we are approved or done any medical exam if needed.

[disneysteve]

Has anyone heard of Haven Life? Apparently they are part of Mass Mutual. Their offer for my wife and I was half what we are paying now. Granted that’s before we are approved or done any medical exam if needed.

I haven't heard of the, but I also never heard of the company my policy is with. If they are part of Mass Mutual, I'm sure they're fine. I think you can also look up their rating online somewhere.

Most people are overpaying for their life insurance, sometimes by a lot.

[LivingAlmostLarge]

I didnt know where to start so I did it online. I have voya which used to be ing direct. I shopped online and bought really cheap term insurance in 2010.

[Bozzdivine]

Hey @skives,

Haven Life is indeed a part of Mass Mutual and they have a reputation for offering competitive rates. They do typically require a medical exam but don't let that deter you, it's a standard part of the process.

Also, remember that price isn't everything. Make sure the coverage fits your needs and that you're comfortable with the terms of the policy. The peace of mind that comes with having a solid policy can be just as valuable as saving a few bucks each month.

Good luck with your search!

[AllyStreelman]

It's worth looking into what rate you can get online vs. your current insurance agent or another local agent, but others bring up a good point - what's more worth it to you? Fielding calls from an agent you have a relationship with or managing emails/customer service reps with an online agency.

[james.hendrickson]

Hey @skives,

Haven Life is indeed a part of Mass Mutual and they have a reputation for offering competitive rates. They do typically require a medical exam but don't let that deter you, it's a standard part of the process.

Also, remember that price isn't everything. Make sure the coverage fits your needs and that you're comfortable with the terms of the policy. The peace of mind that comes with having a solid policy can be just as valuable as saving a few bucks each month.

Good luck with your search!

This sounds like an insurance ad.