Can we talk life insurance?

wasn't sure where else to post this but DH bought life insurance 4 1/2 years ago. 2 whole policies and we're paying $300 a month. Then he heard Suze Orman say that you really only need term. What does everyone else have? I'd hate to switch and loose all that money. TIA!

Re: Can we talk life insurance?

We have term. My policy is a 30 year term policy and DHs is 20 year term (for some reason, one of his tests came back funny and the prices for the 30 year were quite high).

We went through Select Quote and were happy with our experience. I think our policies are about $1,200/year (both of them - mine is $500k, DH is $1m).

ETA: I wouldn't view switching quite as "losing" the money you already spent - I'd view it as saving money going forward.

Message edited 2/6/2009 1:33:52 PM.

Re: Can we talk life insurance?

Most ppl choose term for the fact that its affordable and serves the purpose of providing a benefit,,esp in the loss of income for things such a mortgage, debts etc.

Most companies sell 30 yr term so ppl see that after that point, no mortgage, kids may be off or done with college or, in a better postion where life insurance if any or not a lot of it is needed.

If you are capable of hanging on to that policy, then continue to do so. You have something that is never going to change as for premium, its buids cash value (something you can use if needed down the rd)...and your insurabilty which is health.

its a personal prefernce really and what your needs are and what you can financially afford/need.

If u have other questions, feel free to FM me, since im the field.

HTH

Message edited 2/6/2009 1:36:22 PM.

Re: Can we talk life insurance?

we have term...IMO the whole life is too $$$

Re: Can we talk life insurance?

I work for a Life Ins co -
I have both term and whole life -
I have the term policies to supplement the whole life plans at a lower cost. They can later be converted to whole life using my original age and underwriting class (MUCH lower premiums)
It's really a personal prefrence -

I personally think whole life is important and 'worth' the money .........30 years from now I"ll only be 60 years old -
Try getting Life Insurance at 60 years old- it's gong to cost a fortune IF you are even 'insurable' -

Will my mortgage be paid? Sure -
Will I have kids in college? No -
But IMO Life Insurance is for MUCH more than that .........

Re: Can we talk life insurance?

we JUST bought term for DH and myself. We can convert to a whole life policy at any time. we were going to go with whole life from the start but the premiums were more than we can afford right now.

Re: Can we talk life insurance?

We recently got 30 yr term policies and purchased the policies to provide in case something happened to one of us

Re: Can we talk life insurance?

the reason suze orman says no to whole life is she thinks that people should take the high premium money and invest it themselves. She's right, but some people can't or won't do that.

You should check, but i'm pretty sure you CAN cash in your whole life (I worked for social services and it was considered an asset and would disqualify people)

Re: Can we talk life insurance?

What about universal? This is what we have.

Re: Can we talk life insurance?

I have term and because its really cheap.

Re: Can we talk life insurance?

DH is in the business and we have both whole life and also what his company calls a Discoverer policy. It's basically a dual policy that has some whole life and some term, and the dividends from the whole life convert are used to convert the term into whole life so there is a case value down the road that can be passed on tax free to the beneficiary or can be cashed out if desired.

Re: Can we talk life insurance?

In many ways, term is throwing your money away. yes, you need it in the short term, but once the term is over, you have NOTHING to show for it and then insurance rates are even mroe expensive because you're so much older.

I understand that people do it because ti is more affordable, but it stinks... I saw my parents, now at 65 years old. their term is over and now they can't afford to get another term insurance because they are older and cancer survivors, etc. that make them too expensive to insurance.

DH and I are both teachers and Got a GREAT dela on WHOLE life insurance through our teacher's union. I would see if your employer (or union if that applies to you) offers any similar. We have a million-dollar plus policy for about $60.00 each per month. NOt bad.

GOOD LUCK!

Re: Can we talk life insurance?

Re: Can we talk life insurance?