Life Insurance

[bradgator2]

My 20 year term runs out in May. I was paying around $500/yr for a $500,000 policy. I also had policies through work as did my wife. To renew for another 20 years it goes from $500/yr to $6,800/yr. We're pretty set so THAT ain't happenin'.

My original 20 year policy I got when I was 28 is for $650,000 and is $350 a year.
My new 15 year policy I got at 40 is for 1.15M and is $550 a year.
Like you said... I got the quote to renew when I turned 48 and it was shocking. I dont know what is so different in their calculations between a 40 and 48 year old.

So it just made sense to me to go ahead and get a new policy while the premium was reasonable and just be doubled up for 5 years. Now, I could always drop my original policy and save that $350. But I figured these next 5 years are pretty clutch if something happened to me.

Luckily, my company also throws in a 250,000 policy. I've told all my close friends to be suspicious of my wife if I have an odd death in the next few years

 

[BMF]

Let me get opinions on my life insurance issue:

My wife is 10 years younger than me and wanted to have a baby....long story short, she had a few miscarriages and decided she didn't want to go through another one.

Before she got pregnant I decided I should get a term-policy because my military life insurance is gone after I retire. I applied for a $1 million policy, 30-year term and it was going to cost around $1800/year. I was 45 at the time and it would run out when I turn 75. I thought it was very fair. Well, I ended up getting rated due to a bullsh*t "heart condition" (I have an slightly enlarged heart, but have had several tests and it's been diagnosed as "abnormally normal" - keep in mind I've run 18 marathons, sub-3 hours, 1:22 half-marathons, sub-18 minute 5k's all in my late 30's/early 40's). So....instead of getting $1 million, they offered my $300k at $1500/year.

So, I've paid $1500 the last 3 years and have 27 to go. Is this something I should hold onto?

 

[bradgator2]

Let me get opinions on my life insurance issue:

My wife is 10 years younger than me and wanted to have a baby....long story short, she had a few miscarriages and decided she didn't want to go through another one.

Before she got pregnant I decided I should get a term-policy because my military life insurance is gone after I retire. I applied for a $1 million policy, 30-year term and it was going to cost around $1800/year. I was 45 at the time and it would run out when I turn 75. I thought it was very fair. Well, I ended up getting rated due to a bullsh*t "heart condition" (I have an slightly enlarged heart, but have had several tests and it's been diagnosed as "abnormally normal" - keep in mind I've run 18 marathons, sub-3 hours, 1:22 half-marathons, sub-18 minute 5k's all in my late 30's/early 40's). So....instead of getting $1 million, they offered my $300k at $1500/year.

So, I've paid $1500 the last 3 years and have 27 to go. Is this something I should hold onto?

Do you need a policy that goes that late into life and your child will be in their late 20s?

I tried to be logical and "only" got a 15 year policy at the age of 40 due to:
1) youngest kid would be 22 and hopefully just wrapping up college
2) should not have a mortgage or debt of any kind
3) other retirement/savings would be pretty substantial by that point for my wife to have

The premium difference on my new policy was shockingly different if I decided on 20 instead of 15 years.

So you are 48 now with a 3 year old? It would be interesting to get a quote for a new 15 year policy vs what you have now. Cant hurt to get the quote.

 

[Detroitgator]

My original 20 year policy I got when I was 28 is for $650,000 and is $350 a year.
My new 15 year policy I got at 40 is for 1.15M and is $550 a year.
Like you said... I got the quote to renew when I turned 48 and it was shocking. I dont know what is so different in their calculations between a 40 and 48 year old.

So it just made sense to me to go ahead and get a new policy while the premium was reasonable and just be doubled up for 5 years. Now, I could always drop my original policy and save that $350. But I figured these next 5 years are pretty clutch if something happened to me.

Luckily, my company also throws in a 250,000 policy. I've told all my close friends to be suspicious of my wife if I have an odd death in the next few years

My 30 yr for $2M at 43 was/is $2200/yr

 

[78]

Let me get opinions on my life insurance issue:

My wife is 10 years younger than me and wanted to have a baby....long story short, she had a few miscarriages and decided she didn't want to go through another one.

Before she got pregnant I decided I should get a term-policy because my military life insurance is gone after I retire. I applied for a $1 million policy, 30-year term and it was going to cost around $1800/year. I was 45 at the time and it would run out when I turn 75. I thought it was very fair. Well, I ended up getting rated due to a bullsh*t "heart condition" (I have an slightly enlarged heart, but have had several tests and it's been diagnosed as "abnormally normal" - keep in mind I've run 18 marathons, sub-3 hours, 1:22 half-marathons, sub-18 minute 5k's all in my late 30's/early 40's). So....instead of getting $1 million, they offered my $300k at $1500/year.

So, I've paid $1500 the last 3 years and have 27 to go. Is this something I should hold onto?

You would want to consider:

1) How much annual income would you wife need to live comfortably in the event of your demise?

2) Is your military pension straight life or joint and survivor? If the latter, what percent would she get?

3) What other income for life would she have?

4) Would she need to provide for her own healthcare needs?

5) Are there liquid assets that could be converted to income?

6) Do you have large financial obligations like a mortgage?

7) Is she relatively healthy?

That's a relatively low level premium you are paying for $1 million in coverage.

 

[BMF]

You would want to consider:

1) How much annual income would you wife need to live comfortably in the event of your demise?

2) Is your military pension straight life or joint and survivor? If the latter, what percent would she get?

3) What other income for life would she have?

4) Would she need to provide for her own healthcare needs?

5) Are there liquid assets that could be converted to income?

6) Do you have large financial obligations like a mortgage?

7) Is she relatively healthy?

That's a relatively low level premium you are paying for $1 million in coverage.

78, thanks for the reply. One thing though, you mis-read......it's a $300K policy. I got rated for a heart condition, so I could only get $300K for the same price. That's why I was asking should I keep it. I do intend to keep it for a while as I lose my military life insurance after I retire next year.

Wife is 10 years younger than me, she'll get 55% of my pensions (two pensions). I won't have a large mortgage within the next 10 years (I hope to be mortgage free). She's in great health. I'm debt free except for my primary home mortgage. My wife will be in good financial shape if/when I pass.

 

[78]

78, thanks for the reply. One thing though, you mis-read......it's a $300K policy. I got rated for a heart condition, so I could only get $300K for the same price. That's why I was asking should I keep it. I do intend to keep it for a while as I lose my military life insurance after I retire next year.

Wife is 10 years younger than me, she'll get 55% of my pensions (two pensions). I won't have a large mortgage within the next 10 years (I hope to be mortgage free). She's in great health. I'm debt free except for my primary home mortgage. My wife will be in good financial shape if/when I pass.

Noted that after I posted. Was about to edit my post.

Life underwriters look at your health differently than a physician. You've been rated. Whether or not warranted, it's on your record and will impact your ability to get coverage in the future. I'd probably keep what you have.