Life Insurance: Experiences when purchasing?

[K-hole08]

Hello All,

First time, long time. I am a trainee but at this stage of my life, it seems to make sense to purchase life insurance (recently married with a little one on the way and I am not getting any younger). I used a WCI recommended agent to purchase disability insurance earlier in my training and the agent was very helpful and straightforward. I feel like I have a disability insurance plan that works well for me. For those who have purchased life insurance, do you recommend going through an agent or trying to research/purchase via insurance companies directly? Similarly, should I wait to be an attending to purchase this (since I do not know what my future income might be)? My gut is saying no to that second question but wanted to see what the community experience was. Cheers!

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[Cornfed101]

There’s no reason to wait. You don’t necessarily need to speak with an agent, but going through a broker is a good idea just to get the best premium.

 

[anonperson]

TERM4SALE | Term Life Insurance Quotes - Free & Unbiased - 100 companies

Instant term life insurance quotes from the rates of over 100 life insurance companies; free and unbiased. TERM4SALE does not sell term life insurance, it is owned by COMPULIFE Software, Inc. which sells life insurance comparison software to thousands of life agents throughout the U.S. and Canada.

www.term4sale.com

Put in some basic info and you will get multiple quotes. If you want to proceed, an agent can reach out to you. All legitimate companies and well known.

Buy term life. It is simple and straightforward. Whole life is inefficient and is basically a fat commission for the agent.

Consider laddering policies.

Get it sooner rather than later to lock in costs and to ensure to health issues spring up that could affect your costs.

The amount should be based on your needs.

For example, I have 2 kids and stay at home wife.

I purchased two $2 million policies. One for 20 years the other for 25 years. If I died, wife could pay off the house and not have to stress about money. With the amount we have currently in taxable and retirement, she and the kids would be okay financially.

 

[abolt18]

TERM4SALE | Term Life Insurance Quotes - Free & Unbiased - 100 companies

Instant term life insurance quotes from the rates of over 100 life insurance companies; free and unbiased. TERM4SALE does not sell term life insurance, it is owned by COMPULIFE Software, Inc. which sells life insurance comparison software to thousands of life agents throughout the U.S. and Canada.

www.term4sale.com

Put in some basic info and you will get multiple quotes. If you want to proceed, an agent can reach out to you. All legitimate companies and well known.

Buy term life. It is simple and straightforward. Whole life is inefficient and is basically a fat commission for the agent.

Consider laddering policies.

Get it sooner rather than later to lock in costs and to ensure to health issues spring up that could affect your costs.

The amount should be based on your needs.

For example, I have 2 kids and stay at home wife.

I purchased two $2 million policies. One for 20 years the other for 25 years. If I died, wife could pay off the house and not have to stress about money. With the amount we have currently in taxable and retirement, she and the kids would be okay financially.

This exactly. I got a deal by laddering (which was my plan from the beginning) 3 policies with the same company. term4sale will steer you right. It will link you to some insurance brokers and you just tell them exactly the policy you are looking for and the quote you got.

 

[IDGARA]

Like you, I got a policy through a WCI sponsor. I stuck with them for my and my spouse's term life policies. It was simple and straight forward, and I think we spend less than $50 a month for a combined total of $4,000,000, 10 year policies.

 

[IMGASMD]

Like you, I got a policy through a WCI sponsor. I stuck with them for my and my spouse's term life policies. It was simple and straight forward, and I think we spend less than $50 a month for a combined total of $4,000,000, 10 year policies.

That’s pretty cheap…. You’re provably younger and chance of death is much lower than mine….

 

[BLADEMDA]

Let me give you all some advice. Purchase all the life insurance you will ever want or need before age 30, 35 at the latest, to get the best price. You should buy 2-3 policies which expire at different times. This allows you to ladder the life insurance over 30 years.

Age 30- 3 policies. one 15 year, one 20 or 25 year and one 30 year year policy.

Total could be $3-$4 million or so with the 30 year policy set at $500K or $1 million. This way you are all set until age 60 when your assets should exceed $5 million.

These are all TERM POLICIES and take it from someone with Variable Life/Whole Life you don't want or need anything but term. The other stuff is a waste of money in general with high fees and lower returns than the stock market.

How To Maximize Life Insurance With The Ladder Strategy

Laddering life insurance is a way to create peak coverage at the time of life you really need it. Here how to get laddering to work for you.

www.forbes.com

 

[BLADEMDA]

How to Save Money With the Life Insurance Ladder Strategy – Policygenius

The life insurance ladder strategy allows you to you stack multiple term life policies with different coverage amounts and term lengths to ensure you only pay for the coverage you need.

www.policygenius.com

Layering Life Insurance Policies | White Coat Investor

A single-term life insurance policy might not be best for you. See why laddering life insurance policies could be a more efficient decision.

www.whitecoatinvestor.com

 

[BLADEMDA]

Laddered 30/20/10 Level Term Policy
Annual Premium for a 30-year level term $1 Million: $624 (life cycle cost = $18,720)
Annual Premium for a 20-year level term $1 Million: $370 (life cycle cost = $ 7,400)
Annual Premium for a 10-year level term $1 Million: $235 (life cycle cost = $ 2,350)

Total: $1,229 (total life cycle cost of this life insurance portfolio over 30 years = $28,470)

Notice how big the savings are for laddering a policy, rather than overinsuring with the 30-year $3 Million policy – over $500 per year and over $24,360 over the products’ lifecycle!

Term Life Insurance for Physicians | White Coat Investor

Securing term life insurance should be at the top of a physician's financial chores. Here are 6 strategies doctors should consider when purchasing a term life insurance policy.

www.whitecoatinvestor.com

 

[aneftp]

All I know is my neighbor was able to retire at age 44 (he’s 63 now) selling WHOLE LIFE insurance polices (the power of renewals!!) is all he’s smiling all the way to the bank.

….avoid WHOLE LIFE sales tactics

 

[BLADEMDA]

Again, only buy TERM LIFE INSURANCE and invest your money in the market. Whole Life is a terrible investment and I know first hand the returns vs cost are poor.

Why Whole Life Insurance Is a Bad Investment | White Coat Investor

This popular post explains what whole life insurance is and the various methods salesmen use to sell it to you (usually inappropriately). Be forearmed!

www.whitecoatinvestor.com

 

[DrN2O]

As you can see the policy premium is relatively cheap. If you had a good experience with an agent/broker, I would keep that relationship and let them walk you through the process. Of course you should do your own home work, but should never turn down professional help.

 

[JOHNBROCHILL]

The question for dual physician couples is if you are going to even buy disability or life insurance and if so how much do you need?

I bought a 15 yr 1mill policy at age 30 and my wife does not have life insurance. My policy could pay the rest of her loans and the house, she makes enough to survive on her own. She does not have life insurance as my loans are paid off and I can support our family on my own. My work offers a disability policy, but she does not have a disability policy. Is there some gamble here? Perhaps. But the damage is mitigated when you have another high earning spouse. Are others doing similar?

 

[anonperson]

The question for dual physician couples is if you are going to even buy disability or life insurance and if so how much do you need?

I bought a 15 yr 1mill policy at age 30 and my wife does not have life insurance. My policy could pay the rest of her loans and the house, she makes enough to survive on her own. She does not have life insurance as my loans are paid off and I can support our family on my own. My work offers a disability policy, but she does not have a disability policy. Is there some gamble here? Perhaps. But the damage is mitigated when you have another high earning spouse. Are others doing similar?

Any kids?
Any mortgage?

If one spouse were to die, could be reasonable to have a life insurance policy so they can take time to be with the kids without worrying about money right away

For disability, if one spouse becomes disabled, will this significantly affect your financial quality of life? If so , may be reasonable to get disability insurance so you financially aren't in a hole.

The other issue with disability insurance is some policies provide coverage if you are needing to take time off to care for a disabled spouse. There are compassionate care riders for this. This could be valuable if a spouse comes down with a neurologic condition for example that requires care

 

[JOHNBROCHILL]

We have 3 kids elementary school age, 529s around 1/3 funded
mortgage with 500k left, her student loan debt 200k left

I suppose it would be further peace of mind to buy more insurance. Then I remember most persons don't have disability insurance at all, and I bet many breadwinners don't have meaningful term life. I see our current arrangement could tackle our significant loan burdens and not leave me or her destitute. I understand others wanting more from their policies though.

 

[BLADEMDA]

This is a personal decision. I still have my disability policy in place even though I am financially independent. The policy is good to age 65 so I’ll just let it expire in a few years. Also, life insurance is about peace of mind so some will want a 30 year term policy even if they don’t really need it Based on savings alone.

I recommend a 30 year term policy be part of your long term planning while you are young like age 35. This way you have it until age 65 but can always cancel it sooner. You never know what life has in store for you in terms of health or autoimmune disease or CAD or cancer by age 50.
By that policy for peace of mind even if you can only afford a 500,000 Policy. You may not ever get it that cheap again.

Laddering the insurance with 3 policies is the way to go but you may be able to get by with just 2 policies like a 20 year and a 30 year term.

 

[BLADEMDA]

“As a close friend who is a financial advisor likes to say: enough so that your widow(er) doesn’t have to marry a wealthy octogenarian, but not so much that they can marry the pool boy.”

Reditt

 

[BLADEMDA]

Here are some sample Haven Term policy monthly rates for adults in excellent health at different ages. Each of these premiums reflects a 30-year term life insurance policy.

AGE	GENDER	$250,000	$500,000	$750,000	$1,000,000
25	Male	$17.49	$27.69	$38.41	$47.49
	Female	$14.57	$22.48	$30.59	$37.48
30	Male	$18.32	$29.99	$41.85	$53.32
	Female	$15.61	$25.40	$34.97	$43.31
35	Male	$20.82	$34.99	$49.35	$63.24
	Female	$17.91	$29.15	$40.60	$51.65
Source: Term life insurance quotes for the medically underwritten Haven Term policy issued by MassMutual or its subsidiary, C.M. Life. Coverage is available for up to $3 million. * 30-year term lengths are available to applicants up to age 49. Estimates based on pricing for eligible Haven Term applicants in excellent health. Pricing differences will vary based on ages, health status, coverage amount and term length. These prices do not reflect the rates for applicants in DE, FL, ND, NY and SD.

 

[anonperson]

We have 3 kids elementary school age, 529s around 1/3 funded
mortgage with 500k left, her student loan debt 200k left

I suppose it would be further peace of mind to buy more insurance. Then I remember most persons don't have disability insurance at all, and I bet many breadwinners don't have meaningful term life. I see our current arrangement could tackle our significant loan burdens and not leave me or her destitute. I understand others wanting more from their policies though.

Even if she is earning good money, if you died, she would have $700k of debt staring at her.

And realistically, her earnings would be impacted as a single parent with 3 school aged children. It would be difficult to be full time without additional help.

That will further erode her financial stability.

Most people don't even have enough money to deal with a minor financial emergency.

44% of Americans can't pay an unexpected $1,000 expense from savings. ‘We're just not wired to save,’ expert says

Building an emergency savings fund is a difficult task for Americans. Both the economy and the way we're psychologically wired may be to blame.

www.google.com

Don't be most people.

I had a distant family member die (under the age of 35) and left behind a wife and 2 year old and 5 year old kid. No life insurance policy. Completely upended their future.

 

[pgg]

Term life insurance is a commodity. It's all the same. Buy the cheapest policy from a reasonably reputable firm. Don't bother with an agent.

Don't buy whole life. Life insurance is insurance, not a stupid pseudo-investment.

Buy young. Buy enough. Ladder a few policies. Put the premiums on auto pay.

And then never think about life insurance again.

Seriously, life insurance ought to be the simplest, one-time, fire & forget, emphasis on forget, financial decision you ever make.

 

[aneftp]

Ut southwestern who passed away many ago. I’m not sure if he carried life insurance. But he passed away very young like age 40 of lung ca.

Carry some type of life insurance if you have kids.

You can even for no physical exam policies are pretty cheap $80-100 a month for 900k policy even in your 40s for 15 years

 

[dchz]

Ut southwestern who passed away many ago. I’m not sure if he carried life insurance. But he passed away very young like age 40 of lung ca.

Carry some type of life insurance if you have kids.

You can even for no physical exam policies are pretty cheap $80-100 a month for 900k policy even in your 40s for 15 years

I'm pretty sure he cleared $1 mil+ per year. Prob self insured.

 

[VA Hopeful Dr]

The question for dual physician couples is if you are going to even buy disability or life insurance and if so how much do you need?

I bought a 15 yr 1mill policy at age 30 and my wife does not have life insurance. My policy could pay the rest of her loans and the house, she makes enough to survive on her own. She does not have life insurance as my loans are paid off and I can support our family on my own. My work offers a disability policy, but she does not have a disability policy. Is there some gamble here? Perhaps. But the damage is mitigated when you have another high earning spouse. Are others doing similar?

No. We both carry life and disability policies.

When my wife and I purchased life insurance I got a 1 million plan since at the time she still had student loans. She got a 500k plan because I didn't. Started around age 33, 30 year term, combined we pay around $70/month I believe. We're both physicians but in lower paying specialties - both outpatient primary care. We each also have an additional I think 400k through our employer that costs us nothing. If either of us dies, we can pay off the house with at least 500k to spare if its her or 1 million if its me. We haven't changed the set up since I earn about 1/3rd more than she does per year.

Both have disability policies both personal (post tax around 5-6k each) and another from work that's 6k/month pre-tax I think.

Term life if you're young and healthy is very cheap, even if you can support the family I think its worth it to insure the other spouse.

 

[aneftp]

I got a no physicial exam term life for 15 years even at age 45 for 900k for $90 a month which isn’t bad. Even disclosed my pre existing medical problems and they just asked for my doctors address to verify condition and it was being treated.

So that brought my total up to 2 million. That’s plenty enough in 3 different policies. All my life insurance policy will expire at age 60. I don’t even really need it now. But kids will be in grad school my than or working by than.

My other friend has 10 million dollar policy. He two physican family. But he has a special needs child. So that adds to the equation what he needs.

 

[cchoukal]

We have 3 kids elementary school age, 529s around 1/3 funded
mortgage with 500k left, her student loan debt 200k left

I suppose it would be further peace of mind to buy more insurance. Then I remember most persons don't have disability insurance at all, and I bet many breadwinners don't have meaningful term life. I see our current arrangement could tackle our significant loan burdens and not leave me or her destitute. I understand others wanting more from their policies though.

Term life is generally so cheap that I think it’s a little crazy you don’t have more. Sure, either of you could get by without more, but for a couple thousand a year, you could really set your spouse up to never have a financial worry again in the event that you die prematurely.

And vice versa.

I’m increasing mine currently and it turns out rates are down and no one is doing labs or exams anymore, so it’s a great time to buy.