What do you look for in a life insurance policy?

[wolfman]

Im starting to look around for life insurance. I never really cared about it in the past, but now that Im married and have a child Im concerened that my family will be able to get by OK if anything happens to me. So what are the things to consider when chosing a life insurance policy? I have heard about term life and full life but dont know the difference. I understand that some work like an annuity that can pay you back later. Any tips are appreciated.

 

[CaboWabo]

I'm 36 with a wife and 3 year old. I just bought a $1M, 30 year term policy for $850/year. I used accuquote.com. I'm not an expert, but you can get a bigger policy for lower premiums if you buy a term policy. Of course, you or you beneficiaries get nothing if you don't die during the term. I think you'll get a lot of responses recommending term. Insurance should be insurance, not an investment.

 

[Craigcito]

Most will recommend a term policy.

I went to The Link, and got quotes from a handful of companies with A+ or A++ ratings. Of those, I went with who offered the best deal on the term policy I wanted.

Edit: As an aside, if you are young, a disability policy might be as important as life insurance. A lot of things can happen to you that make you unable to work without actually killing you.

 

[Sangre Naranjada]

Yep. A very famous life insurance salesman used the line "buy term and invest the difference".

Look at the costs for a whole life policy, then compare that to a term life policy. If you put the difference in price into a Roth you'll do incredibly well for yourself.

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[iamtigerwoods]

Did a term policy through Fidelity. $1MM policy for $540/yr for 20 years.

 

[iamtigerwoods]

also, of note, I obtained a 20-yr $500k policy for my wife, even though she is a stay-at-home mom. If something were to happen to the wife, this would provide me the flexibility to stay at home for a few years or take a job with less pay/less hours, so that I could raise my kids solo.

 

[fratboy_legend]

i have a friend who does not have life insurance and instead has a membership at a top gym for his wife.

his logic is if she keeps the body tight she will have no issues finding a rich husband if something happens to him. plus he gets to enjoy the benefits.

thats a true story.