Ask MetaFilter questions tagged with lifeinsurance

Worth it to buy an annuity?

acridrabbit — Sun, 20 Dec 2009 18:21:21 -0800

Apparently I qualify to buy an annuity as part of a class action settlement. Is it worth it? I got a notice of settlement in the Douglass et al v. American United Life Insurance Company class action suit saying that as a class member, I am eligible to buy a tax-deferred AccumAnnuity II that will accrue interest at 1.25% higher than what's available to the general public. According to this page, the rate would be 3.7% + 1.25% for year 1, going down from there to 3.35% + 1.25% at year 7. That's certainly better than the 2% I'm getting from a CD or savings account.

So, assuming this is not a scam (I don't think it is), should I do it? I don't have much in savings, but I could probably swing a small amount (like $5k) and still keep a healthy emergency fund. I am in my mid-thirties, healthy, married, no kids. I have less than $15k saved for retirement so far, but I'm maxing out my contribution every year. I save about 20% of my income. Aside from student loans at 6% interest and a mortgage I make 13 payments on every year, I have no debt. I live in Massachusetts, if it matters.

Thanks in advance for any advice.

Overwhelmed with life insurance options

siclik — Wed, 09 Sep 2009 14:35:30 -0800

Help me jump these remaining life insurance hurdles! Last week I announced that my wife and I are expecting our first child. Yayyy! Now onto more serious (related) business . . .

I'm trying to get term life insurance for myself and am wondering how the following things will affect my coverage:

- Several years ago, I was prescribed depression/anxiety medication by my family doctor which I took over the period of about a year. I stopped taking it about three years ago. Don't have anything depression-related since then.

- I regularly use an inhaler. My allergy doctor says that, while I don't have really bad asthma, regular use of an inhaler does improve my lung performance by about 10%. (I think asthma is classified as 12% improvement)

- Other than those two things, I'm in pretty good health. Young, exercise, close-to-normal BMI, non-smoker for 3+ years, etc.

I just ask because, every policy estimator online asks "Do you have a history of depression? Do you have asthma?" and when I check those, I'm classified as a "Standard" risk category and my estimates double. Is it really that black/white? I'm in my mid-twenties and am considering getting $500,000 for a 20-year term policy and $250,000 for a 30-year policy. Does this sound sufficient?

I have read through these two previous questions, but I still can't decide on the best way to proceed. Should I use InsWeb still or is there an easy way to find a local broker that would represent me well? (I'm in Portland, OR, if that helps)

It's just a lot to research and decide on all of a sudden, so your input will be greatly appreciated.

Thanks all!

Am I anemic and is it a problem?

robinpME — Tue, 01 Sep 2009 17:14:59 -0800

I'm currently applying for life insurance, and I'm wondering 1) how likely is it that I'm still anemic after recent blood loss, and 2) if I am, will that increase my life insurance rates? I had a baby about two months ago, and I hemmorhaged significantly after his birth. I received several units of blood the day he was born and again the day after. I think my hemoglobin was right around 8 when I was discharged from the hospital. I took iron supplements for a month. Given that I'm relatively young and healthy, would you expect me to still be significantly anemic two months later?

If I am anemic, does anyone know if that would affect my life insurance rates? Does the fact that I know why I'm anemic make any difference, will they care? We have a nurse coming next week and I'm wondering if I need to push back the exam or get my blood tested in advance? Thanks!!

How do I sell this life insurance policy without getting swindled?

telegraph — Thu, 23 Apr 2009 12:57:22 -0800

What are/how do I find reputable firms who will buy my father's life insurance policy? How can I determine what a fair price would be? Is there anything special I need to know before I proceed? (Asking on behalf of a friend) "My father suffers from a degenerative disease which is sure to take his life within the next five years if not sooner. He has a substantial life insurance policy, but in order to continue to make payments on it for the rest of that time, we would be forced to sell our house. The possibility of selling his life insurance to an external firm has been suggested to us -- as I understand it, based on the payout value of the policy, the required monthly payments, and the expected time until payout, a company would pay him a lump sum now and take over the payments.

Has anyone had experience with this in the past? It seems like sort of a shady/loan-shark type transaction so I'm very anxious about finding the most reputable people to deal with if we decide to go forward with this. I'd greatly appreciate any advice anyone can offer. If I need to provide any other details, please let me know and I'll post more." (Well, I'll post more, but you know)

Life Insurance and the Health Exam

Zoyashka — Thu, 09 Apr 2009 12:06:38 -0800

Is it possible to get term life insurance without the health exam? I'm looking to fill a gap between what my employer gives me and my mortgage balance (I have no dependents or spouse)--it's mostly for my parents' benefit.

I'd like to get a total of 100k in term life for 20-25 year period.

I do not want to do the medical exam that most companies require. I'm healthy and don't have anything to hide, I just don't like the idea of a corporation having that information.

So my question to you is, can anyone recommend a quality, stable company that doesn't require the medical exam? If I have to get 2 50k policies from separate companies so be it.

Would it be weird for me ask my insurance agent "What's the highest level I can get without the exam?" I'd feel a little creepy asking that...ha!

Thanks in advance for your help!

Life insurance help?

zardoz — Sat, 28 Feb 2009 06:35:23 -0800

It's time for me to look into purchasing a life insurance policy. I was married about a year and a half ago, and my wife and I are expecting our first child in a little less than a month. So you can imagine I've got my mind on an insurance policy in the event of my death or serious injury; they would need to be taken care of.

Can someone give me some research pointers? What's a good basic policy I can get now and perhaps augment in the future? And what pitfalls should I avoid? (Difficulty level: I'm an American living and working in Japan. My wife is currently unemployed, natch because of the pregnancy, and likely won't be working for a year or so.)

I want to put a small price on my head.

wabashbdw — Fri, 19 Dec 2008 09:51:26 -0800

Why should I refrain from buying a very modest 30-year term life insurance policy from a financially unstable company like AIG? Ok, I want to purchase a 30-year term life insurance policy. The value of this policy is within the limits guaranteed by the applicable state guaranty association. At this point, what is the benefit of paying a little more for an insurer with a strong financial position vs one that may not last 30 years?

My understanding is that if I buy the cheapest policy and the company goes under, then the state guaranty association takes over the policies and finds them a suitable home with another insurer or simply administers the policies itself. I was informed that my rates and coverage would remain the same. So why should I not save a couple bucks a month on the premium?

What life insurance coverage do I sign my mother up for?

helios410 — Mon, 15 Dec 2008 09:14:41 -0800

Life Insurance Filter: I am looking to find coverage for my 55 y/o mother living in NJ. What is the best way to do this? Through some preliminary research, I am looking for long-term, renewable coverage. Should I go through a local provider? How do I find out if I am enrolling her in a trustworthy program that is worth the monthly amount?

Any other suggestions/information is welcome.

Thanks.

Am I just shy?

ms.v. — Thu, 20 Nov 2008 07:33:40 -0800

Did I have a normal life insurance appliction experience? Yesterday, when my husband and I had a meeting with an insurance broker to apply for life insurance. After we agreed on the terms, the broker proceeded to go through the entire application with us, asking us about details of our medical history. I understand that the insuance company needs this information and am happy to provide it. However, I was very suprised to have to give the information orally to a stranger, rather than fill in the form ourselves, privately. Furthermore, this was done in a cubicle in a rather public office. I know that the other insurance agents and members of the public could hear our conversation if they were so inclined. While (luckily) our medical histories are rather boring, I still felt humiliated to have to discuss previous drug use, abnormal pap smears, tests, and family history with a stranger, in public.

So: my questions. 1) Is it normal to go over the application orally with the broker? 2) Is it normal for this interview to be semi-public?

I am considering writing to the branch manager of the insurance agency, but I want to make sure that my concerns are well-founded.

Party On! The finer points of term life insurance policies

brandman — Fri, 10 Oct 2008 06:24:15 -0800

Life-Insurance-Filter (again): There have been some good threads in the past on understanding/buying life insurance, but I wanted to get a bit more specific this time around. To supplement my current coverage, I've decided to buy a term policy (possibly renewable), the duration and amount of which will fit my situation. What I wanted to get some insight on are the finer points of these policies. That is, if there are specific "fine print" items to look for (or conversely, to look out for), I'd like to know what those are.

Of course, it's not just the fine print I'm interested in - I'll be evaluating the overall value of the package, based on coverage, price, rating/health of the company (!), etc. Just curious about any additional differentiators I should consider that might influence my overall decision. Thanks!

life insurance HEALTH STATEMENT

Mr Chips — Thu, 22 May 2008 07:21:17 -0800

My life insurance lapsed - and a new signed medical health statement is required - am I screwed if I lie? I've had a $400,000 life insurance policy for about ten years or so. Recently the policy lapsed, due to a bank checking account change / automatic draw situation. The company, Liberty Mutual, says I can reinstate the policy and bring it up to date with the past due payment, but I need to fax them a "Health Statement." The statements asks: Since the date of the application of the above policy: "Have you had any illness or injury?" and "Have you consulted any physician or surgeon?"

The problem is, about two years ago I was diagnosed with Type II diabetes. I called my local (Friendly) representative for the company, who sold me the policy years ago, and he says just lie, and say that my health is fine. He also advised me to lie way back then, and say that I've never smoked pot, which I did, and continue to do occasionally. (Marijuana is the only thing that calms my leg shakes and neuopathy in my feet.) I'm 52 years old, fit, and doing my best to treat my diabetes. I've never smoked tabacco and I've never drank alchohol.

My question is: If I lie, and say "No" to these questions, is my estate and my loved ones listed as beneficiaries screwed when I die? Will my death certificate probably list my death as due to complications of diabetes, and thusly nullify the life insurance? Will the Life insurance company get a copy of my health records after I die, and see that I was diagnosed? Even if I die of a heart attack, or stroke, will the diabetes come into question, along with this new Health Statement? I'm sure that if I applied for a new policy, with the diabetes, my premiums would be impossible to afford.

What should I do? Any insurance industry folks out there, what to share the inside pitch? Please?

should my young and debt-free partner get a life insurance?

esolo — Tue, 06 May 2008 06:51:46 -0800

should my partner get life insurance? He is young and debt-free. My partner is in his late 20s, and I am in my mid-20s. We have been together for 7 years. He is only 3 months away from being debt free. He has a well-paying job. He recently expressed interest in buying life and disability insurance as soon as his debt is paid off. He is considering paying around $200 a month.

It seems really counter-intuitive to me. We are not married, we do not have any children, we do not have a mortgage. He does not have an emergency fund, he has not started on his retirement savings. If he were to die, I do not have any debts, and would be financially fine on my own. I do not have any debts, and have $2,000 emergency fund, and another $2500 in retirement savings. One of his arguments is that life insurance would cover any funeral costs, and that he is partially doing this for me. Again, it seems silly to me to be paying hundreds of dollars for years for a one-time cost. Would it not be smarter to dump all this money into a registered retirement savings account, or even an easily accessible savings account?

Please let me know if one of us is right. Are there are any useful resources that you can recommend?

Should I cancel my life insurance policy and use it to pay off my consumer debt?

Anonymous — Fri, 29 Feb 2008 16:33:49 -0800

Should I cancel my life insurance policy and use it to pay off most or all of my consumer debt? I'm Canadian, 50 years old, single, self-employed, with no dependents. I have about $15,000 in consumer debt and about $200,000 owing on my house. I'm covering my mortgage payments well, and am currently spending about $300/month on servicing the credit card debt. (I have 3% interest until October, but it goes up to 9% after that). There's a good chance that things will be busier for me in the spring, and I may be able to increase my debt repayment to about $1200/month, but I can't count on that.

My retirement savings are lower than I would like them to be, but I do have house equity, several RSPs, and two life insurance policies. One policy will pay out $250,000, which will cover the house and any outstanding debts. This policy costs $25/month and has no cash value. The other whole life policy would only pay out $100,000 but can be cashed in when needed. I'm paying just over $100/month for the latter policy, and it is projected to be worth $40,000 when I'm 60, $55,000 when I'm 65, and $120,000 if I make it to 80.

To my understanding, there are three reasons to have life insurance: to cover debts when you die (my major debt is the mortgage, which is fully covered by the $250,000 policy); to provide for dependents (again, I have none); and to act as an investment vehicle (I have other investments I'd like to improve).

This whole life policy's current cash value is just under $15,000. If I cash it in and apply most or all of this to my debt, it would allow me to put a lot more money towards my other retirement investments every month ($400-$1300, counting the insurance premiums and current/projected debt payments), and give me some peace of mind and breathing space. I have been watching my budget and have been paying down my debt as much as possible, but it's been a horrible year on a number of levels and I'm actually deeper in debt than when I started. Optimistically, I'm about 18 months away from clearing the consumer debt. Pessimistically, it could be another 5 years before it's clear. If I cash in the life insurance, I could be free of debt significantly faster.

The possible drawbacks of cancelling the whole life insurance:

1) The tax hit of about $3000-$4000 on the $15,000 I get from the policy. This would mean paying only $11,000-$12,000 to debt immediately, which is still a huge improvement, or paying it all off and budgeting carefully for the rest of the year to cover the expected taxes.
2) The loss of potentially $40-55,000 (taxable income) at retirement age. I could almost certainly make this up or exceed this with other investments once my debt is gone.
3) At 50, if I do need to buy a new life insurance policy for any reason, it could be much harder to get and more expensive. But I can get $10,000 of coverage for $20/month from the same company that provides my supplemental medical insurance. I don't need lavish life insurance, just something to cover any remaining small debts and a funeral. I do need to be out of debt as soon as possible and to have a much larger retirement fund.

Given these issues, is it worth cashing in the policy? I think it is, but I could be missing something important. If necessary, you can contact me at debtclearance@gmail.com.

Can I get business travel (only) life insurance?

NailsTheCat — Thu, 11 Oct 2007 09:25:39 -0800

I have to travel to Johannesburg for 3 weeks on business so I thought I'd check our corporate travel / life insurance. I'm covered for $20,000 which I consider way below par. I need business travel life insurance options. Our health insurance (Blue Anthem) dictates a minimum level of life insurance cover, which we have: $20,000. We also have business travel insurance which covers medical expenses extra -- but no life cover. Our UK staff have life insurance at 3x / 4x their annual salary (depending on number of dependents).
I don't need extra comprehensive life insurance for my every day life - at least not from my company. But I would like to be cover in the event of a plane crash (wherever I travel on business) or a carjacking in Jo-Berg say.

Does anyone have experience of specific business travel life insurance or similar plans? I'd like to approach HR with some good background knowledge.

How much is a life worth?

anastasiav — Mon, 25 Jun 2007 13:16:37 -0800

Educate me about life insurance. I'm female; under 40; non-smoking; the primary wage earner in our family (I earn 2/3 of our income, my partner earns 1/3); we own a house and have a son who will be one year old in July.

For many years, I had $100,000 in life insurance through my employer, however this benefit is no longer available to me so I've started shopping for insurance and, I have to say, everything seems prohibitively (ie: $100+ per month) expensive, and I'm having a lot of trouble sorting out the options. We're guessing that I need about a $250,000 policy (which would pay off our house and car, my funeral, plus leave some savings for our son).

What are the real-world differences between Term Life, Whole Life, Variable Life, and Universal Life? Which is the "normal" thing for someone in my situation to buy, given that our budget is very tight? I know we can't afford to be without insurance if something happens to me, but honestly an extra $100 per month would put a huge strain on our budget right now, so is this a "reasonable" price for a young-mom-non-smoker to expect, or are the internet quotes I'm seeing too high?

I realize I should speak with an agent about this, but a) I'm working two jobs and its difficult to take time away from work to make an appointment and b) frankly, I feel as though if I go into a conversation with an agent uneducated I'll end up getting sold something more than I need or want.

So please, educate me about life insurance.

Who should we put as our beneficiary?

Jazz Hands — Sun, 06 May 2007 12:02:12 -0800

How does one provide life insurance benefit for someone who cannot have an income? Background: My husband's son, 13 now, is autistic. He will never be self-sufficient and will be on his parents' insurance until 18 and SSI thereafter. But to qualify for SSI/Disability we are told that he cannot have assets/income above a very low amount or he no longer qualifies(until his medical/housing care bleeds all of the money dry and can re-qualify for benefits) So right now he has the plans benefitting his son's mother.
What other options does he have? I think a trusteeship would be something to look into, if it shields the money and keeps him on SSI. Of course we hope to be around a very long time to take care of him, but this getting older is scary and we worry.

Relatively speaking, how good is my life insurance quote?

neilkod — Wed, 28 Feb 2007 09:49:12 -0800

Help me determine how fair my life insurance quote is. I received a quote from Fidelity for $1M 20-year term life insurance for $970/year. I'm pleased with Fidelity for other accounts so I figured I'd give them a shot for life insurance.

I have no real frame of reference to see if this is a fair bid. I'd rather not go through the application experience with other companies to get comparative bids-I'd like to know where my quote fits in the overall ballpark. Additionally, I'm supposed to respond to Fidelity's bid soon.

I've tried the online quickie-quotes but those aren't really meaningful.

I'm 35 years old, in fine health, great heart, etc. Not a smoker, not a pilot/cliff diver/etc. A red flag to Fidelity is that I recently lost a bunch of weight, and that affected my rating, thusly my premium.

How do I get life insurance without disclosing the skeevy details of therapy?

Anonymous — Wed, 21 Feb 2007 19:40:43 -0800

Is there a way to get life insurance without the underwriter seeing the complete records of my two-plus years in therapy? There's nothing earth-shattering: Just a standard-issue case of depression and anxiety that, thanks to psychotherapy with a good shrink and a low dose of Lexapro, is now well under control. But the insurance company won't accept a letter from my doc saying simply that he treated me and that I have responded well. The rep assures me that only the underwriter will see the records of my treatment, and, like I said, there's nothing terribly shocking in there ... but it's intimate, personal stuff that I'd like to keep as private as possible. Any thoughts?

What life insurance carrier to use?

BT — Mon, 17 Apr 2006 20:30:24 -0800

Recommend a good life insurance provider. We've put off for too long getting basic term life insurance for myself and my spouse. I want to resolve this quickly -- no pressing issue other than the fact that I meant to get this done literally years ago and haven't yet - but I don't know how to go about evaluating insurers. Anyone with inside knowledge of who to look at -- or avoid? I'm expecting to spend a little while evaluating different companies/options, but I'd like to narrow the field down a bit first.

Explain beneficiary vs. co-owner, and why I should care?

SuperSquirrel — Sun, 19 Mar 2006 07:59:35 -0800

What is the difference between a beneficiary and a co-owner in terms of life insurance stocks? An agent from my life insurance company (someone I've never heard of before) has informed me that I have 50 shares of stocks in MetLife. According to him, I have to designate either a beneficiary or a co-owner for these, and I have to do this in his office. He's called several times, as if this is an urgent matter that must be handled immediately.

First of all, what's the difference between these two options, and is one a better choice? If I die, don't these become part of my estate that my husband would get anyway? Aren't any assets currently listed in my name only really joint assets anyway? (We live in Illinois, have been married 11 years and don't have wills, if any of that makes a difference.)

Secondly, is he just trying to make me come in to the office so that he can try to sell me [whatever he wants to sell me]? The urgency of his request sounds fishy to me. What's the difference to him if I come in next week or next year or never? It's not like we have an agent/client relationship he needs to nurture.

In your reply, please use short words and assume I am stupid, because money matters make my head hurt.

Employer demanding a third life insurance policy

GhostintheMachine — Thu, 01 Dec 2005 11:04:11 -0800

Ever have an employer require you to get a life insurance policy as part of the terms of your employment? My wife's new part time, 2 year term job is demanding just that, even though she is already adequately covered by two policies. It's office work for a non-profit organization, and I can't understand the need. Perhaps it's some group insurance policy requirement - do they have those? Is this legal anywhere (I'm in Nova Scotia, Canada)?

life insurance

Anonymous — Wed, 20 Jul 2005 17:28:06 -0800

What would happen, in theory, if someone were to fail a life insurance drug test? Would coverage be denied immediately? Permanently? Would other insurers be notified, or would this information be available in some type of database? Would it be impossible or difficult to obtain term life insurance coverage in the future? Let's assume we're talking only about THC. Thanks for any help.

Life insurance--where/what kind to get?

MrMoonPie — Fri, 28 Jan 2005 08:03:48 -0800

Life insurance--where/what kind to get? My wife and I just bought a house, and I realized we need to get some life insurance. I have some already with my daughter (from a previous marriage) as a beneficiary. My work-provided insurance isn’t having an open season for a while. So who do I call?

Life Insurance

keep it tight — Thu, 18 Nov 2004 15:34:27 -0800

Life-InsuranceFilter

Ok, I just noticed that I'm paying a fortune for my work sponsored life insurance. I need to figure out the best plan for a 35 year old divorced dad with one kid...any thoughts?

Term Life Insurance

dhacker — Fri, 30 Apr 2004 06:25:16 -0800

We've talked about Health Insurance a few times - what about Term Life Insurance? I'm +40 years old with two kids and would like a bit more insurance than my job provides (basically 1 year salary). Should I go with a place like Reliaquote and just pick the best offer? Or is there a better approach?