Using a Financial service vs. going direct for insurence and investments

[plane16j]

Ive recently ben approached by a friend of mine to purchase life insurance and investments im almost 27 years old married with a one year old. the only real debt I have is 144k on house and 10k on car no more than 1k on credit card. If anything ever happened to me then my wife will sell the house and keep the car. there is not need for her to be in a 4 bedroom house by herself. I have 60ksupplemental insurance though work. that would cover funeral, car and some extra until. I would think it would only be important for more life insurance if in incurred more debt over and above what my current work policy would cover. Or if I got a new job the didn't have provide any. He is trying to sell me term life insurance. Also wouldn't it make more sense to do directly to places like fidelity or other place like that instead of using my friends company as a 3rd party to those companies anyway? the last time he approached me I held off and actually found much better rates by just going direct for car/home insurance. I would much rather start to put an EXTRA amount into a retirement investment fund like ROTH IRA instead of money into term life insurance. Thanks for your input.

[disneysteve]

I would ditch this "friend". Real friends don't try to sell you crap.

I'm surprised that he's trying to sell you a term policy. Are you sure about that? It's much more likely that he's pushing some form of whole life which you always want to avoid.

That said, you are way under-insured. Also, you never want your only insurance to be the policy provided by your job. Lose your job and you lose your insurance. Go out and get a term policy (not from your friend) for 8-10 times income. AccuQuote is a good source for pricing.

[Petunia 100]

Since it is term insurance, the "friend" is likely into Primerica, formerly A.L. Williams. Agree with Steve's advice to ditch the "friend".

While I would not touch a Primerica product with a 10 foot pole, I do think you should reconsider your views on life insurance.

If you were to die suddenly, would your wife really be in a good spot to make decisions regarding selling her home, while caring for a 1 year old and dealing with her grief? Probably not.

Term life insurance is very cheap, unless you buy it from Primerica. You and your wife should consider carrying some, enough to carry the family for several years at least.

[disneysteve]

You and your wife should consider carrying some

Great point. Your wife also needs adequate term coverage.

[JulieAlbright]

Assuming you have no major health issues, when you are young and healthy is absolutely the best time to purchase a good 30 year term insurance policy. Just a quick trip through some of the calculators can easily show you what a small monthly payment can buy.

Let me point out this. You state that your Supplemental Insurance policy is through work. Let's pretend it is 8 years in the future and you have developed a serious chronic health condition. You go into work and find out that you have been laid off. It takes you 4 months to find a new job, but it doesn't offer nearly as good benefits.

You've lost your Life Insurance, and now you are older and the rates are going to be triple or more.

[feh]

+1 to everything that's been said.

Don't buy life insurance from a friend. You need more than what's provided by your employer.