Was hoping that paying semi-annually allowed for a cheaper rate, but that doesn't seem to be the case. Are there any tips for trying to get the best rate from a reputable provider?

Thank you!

DAM said:

---

Was hoping that paying semi-annually allowed for a cheaper rate, but that doesn't seem to be the case. Are there any tips for trying to get the best rate from a reputable provider?

Thank you!

---

Lie about your health?

But seriously, the rate a company gives you is probably not negotiable, so assume that they will give you their 'best' rate.

Ha! Had not considered that. Yeah I figured, just seemed strange the wide range of pricing I received while looking around online.

dam

Find an agent that represents multiple companies.

He/she should gather info about you (many details) and find a good fit for you.

Some companies may be a better fit for different levels of coverage (ex: $100k or $500k, 10 years or 20 years, tobacco or non tobacco, health status, weight etc).

Rates could then change once an exam is completed.

How does the agent get compensated? Trying to avoid where an agent gets commission based on what product they sell, seems that if that's the way they are compensated they can't be impartial.

dam

You should talk to someone like Stive or any other CFP who will ask you several questions about your health history to determine which insurance company best matches with your history and will offer you the best price for term insurance.

I can't speak for how Stive is paid but some get a commission of 80% of the first year premium and then zero after that. So let's think about it. If an average term insurance premium may be 600-1000 in a year the commission isn't that much.

The advisor/agent you work with shouldn't be afraid to discuss that with you.

Or you can go online to the Dave Ramsey place and do it that way.

In for this thread for my info

Be healthy is your first move. Tobacco is the killer on life insurance prices (especially cigarettes). In most cases, if you've had one cigarette in the last 3 years your rate is going up. Most companies will allow the occasional cigar or chew but one cig will put you into full blown smoker status.

Paying annually will usually get you a slightly cheaper option than semi-annually. Semi-annually will usually get you a slightly cheaper rate than quarterly or monthly. (This doesn't hold true with all companies, but does with many)

If you go with a shorter window of coverage (10 year as opposed to 20 year, or 20 compared to 30) you'll pay less. You'll end up paying more down the line because you will re-up your coverage in the future at an older age and probably slightly less healthy, but that will make it cheaper in the short run. There are also other term structures that could save you money on the front end, but to keep from muddying the waters I'll leave those out of this discussion.

Leave all bells and whistles off. No waiver of premium, no accidental death riders, inflation riders, etc.

You can't really buy a product that doesn't get someone paid. All insurance policies have a commission built into their pricing model. You may not know who gets the commission, but someone is going to get it. So with that in mind, you won't be able to ask for that to be taken out of your pricing. There are financial advisors that will look at a slate of options for you and recommend the one they think fits the best but in this case, you're paying someone for their opinion, and that time is going to cost you.....possibly as much as the term insurance will.....and the wholesaler or agent that sent the quotes to the advisor for his expert examination, is still going to get paid. That option can be helpful for someone with a complex insurance situation or need....but people buying term insurance don't typically fit into the "complex insurance situation".


Those are the primary factors and short cuts. Let me know if that makes sense, or if you have any other questions.

I have gotten term policies twice through Zander Insurance (Dave R endorsement). Painless, easy and shops a bunch of companies. Good experience and no pressure.

If you have a trade organization like AICPA for accountants you may want to check to see if they offer insurance plans. I have found me and my wife's term life through their insurance trust program was highly competitive after shopping around with several brokers in the past. If you don't know what you need or want engage a broker like Stive for some sound advice - IMO it will be well worth the commissions they make for an important long term decision like this.

You can also talk to Aggies that can shop it out. Progress is poster here and I know he's hooked more than a few Aggies up.

I'll try to get him to chime in

Thanks Gvine!
Happy to help

Reminder: use a broker like me or stive because the rates are the rates. Don't use a .com Robo broker because they pull from the same database and don't have a critical thinking element
Furthermore you should probably work with and advisor who is also licensed to sell insurance - making sure that they're a fiduciary and have the right credentials like a CFP, and don't charge a fee for time. Those guys exist

*raises hand*

can you post your info so us can connect and get started?

Matsui said:

---

can you post your info so us can connect and get started?

---

Is that directed at myself, Progress, or both?



(Only asking because your post hit in the same minute mine did, so if you were replying to progress and my post beat you to the punch I didn't want to assume you meant me).

I'll go with both.

Edited: Went ahead and took it down.

Let me know if you didn't get it, or post a good email and I'll reach out if needed.

I fly professionally and privately. If by chance you fly your own private plane or you fly on someone elses you need to make sure you're covered. I have insurance that covers me for that, it is more expensive.

How many hours have you logged?

More than 20,000.

I have $1,000,000 term policy that covers small airplanes. It wasn't a lot more than other policies but that may be because I have lots of flying time. Never fly with your private pilot buddy in his small plane unless your insurance covers it. You don't want to expose your family to that in case something happens.

Several of the major carriers don't charge much (there are a couple that don't charge any extra) more for pilots that are over 2,000 hours and have the "proper" ratings.

You might check with your current insurance company and see if they'll reconsider your policy based on your current hour total. If they won't, then I'd consider looking at a different company to see if there is a better option.

I'm on now and missed the email. Can you repost?

I know term life needs vary by individual, but is there a basic formula for life insurance needs?

I've heard people say 10X income or DIME for Debt, Income, Mortgage, and Education. I'm a little leery of those numbers bc they people saying that are the ones trying to sell it to me.

Also, what are the recommendations for staggering term with different policies in 10, 20 and 30 year terms.

I've looked into 30 year terms, bc it sounds appealing to have a portion of life insurance bridge me until I'm 68, but the payments are not insignificant.

Stive said:

---

Several of the major carriers don't charge much (there are a couple that don't charge any extra) more for pilots that are over 2,000 hours and have the "proper" ratings.

You might check with your current insurance company and see if they'll reconsider your policy based on your current hour total. If they won't, then I'd consider looking at a different company to see if there is a better option.

---

Good points. I didn't realize that 2000 hrs was a threshold, I didn't ask and they didn't tell. I used two different companies the last time I bought insurance, both provided multiple quotes, one was Select Quote. I got a large number of quotes and they weren't that different. My main concern was for those that might have the occasion to fly in a small plane and not be covered. I've made sure I was since I was in my twenties. I'm a lot older than that now.

Got it. Thank you.

Those are good things to consider.


There aren't many companies that will penalize someone for taking a ride in a smaller plane, but as soon as you say you're flying one.....that's going to leave a mark.


On that same note, most of the risky stuff won't penalize you unless you're making it into a steady hobby. Sky diving for example. If you mention that your wife bought you a skydiving package for your birthday and you did a tandem jump last month, it won't pop you. If you're doiing it regularly and are planning on a dozen jumps over the next 6 months you're going to pay more. Scuba diving is the same thing but even less stringent. If you're taking classes, but not planning on any super deep or "risky" stuff, you're usually alright.

Stive said:

---

Those are good things to consider.


There aren't many companies that will penalize someone for taking a ride in a smaller plane, but as soon as you say you're flying one.....that's going to leave a mark.


On that same note, most of the risky stuff won't penalize you unless you're making it into a steady hobby. Sky diving for example. If you mention that your wife bought you a skydiving package for your birthday and you did a tandem jump last month, it won't pop you. If you're doiing it regularly and are planning on a dozen jumps over the next 6 months you're going to pay more. Scuba diving is the same thing but even less stringent. If you're taking classes, but not planning on any super deep or "risky" stuff, you're usually alright.

---

Very good points, thank you for posting.

Stive, like the Farmers guy, you seem to know a thing or two. Do you work in the insurance field? If so, would you mind commenting on the Medi Share thread?

My background is I'm a CFP that does a lot of life, disability, and long term care insurance.

The only thing I'm comfortable commenting on when it comes to medishare is that it's spelled correctly. It's pretty far outside my comfort zone.

Stive said:

---

My background is I'm a CFP that does a lot of life, disability, and long term care insurance.

The only thing I'm comfortable commenting on when it comes to medishare is that it's spelled correctly. It's pretty far outside my comfort zone.

---

Fair enough, thanks!

jac4 said:

---

I know term life needs vary by individual, but is there a basic formula for life insurance needs?

I've heard people say 10X income or DIME for Debt, Income, Mortgage, and Education. I'm a little leery of those numbers bc they people saying that are the ones trying to sell it to me.

Also, what are the recommendations for staggering term with different policies in 10, 20 and 30 year terms.

I've looked into 30 year terms, bc it sounds appealing to have a portion of life insurance bridge me until I'm 68, but the payments are not insignificant.

---

I think the need for term insurance does vary greatly depending on each persons situation. The idea is that your need for the insurance decreases as time goes on. So I have done some cases where we'll buy a 10, 20 and 30 year term. But it's more regular just to buy a 20 year term policy and be done with it.

You'll want to ensure that you find a policy that gives you the ability to convert to permanent insurance later with no evidence of insurability. This way if you decide later that you need to keep the insurance you can do that even if you're uninsurable.

I can't speak for other insurance guys...My practice is probably 80% investments 20% insurance....but I don't spend a lot of time worrying about the exact right amount of insurance to buy. I think you can look at the standard measurements like 10-15x income etc to give yourself at least some range to be looking at but that's about the extent that I worry about it.

The cost generally is just not that much and the commissions are not that great for you to spend that much time worrying that someone is trying to stick it to you.

So if you're 38 years old today, some of this also depends on the amount of assets that you have saved already and what you are projected to have saved by the time you're 58, but generally speaking I would hope that you would be able to self insure by the time you're 58 years old. So I doubt you would need coverage until age 68 but again, I am not familiar with your specific situation.

This is why it is valuable to buy insurance from someone that really understands your situation...just go find yourself a Certified Financial Planner (CFP) that you trust to work with you on this. And don't be afraid to ask him how much he gets paid.

Maybe I am over simplifying but generally speaking why would someone not buy the cheapest 20 year term policy available from a reputable agency? Once the 20 years is over you SHOULD be self insured with assets you SHOULD have accumulated and children that SHOULD independent. Obviously life can happen but those are about the most standard outcomes you can project.

10andBOUNCE said:

---

Maybe I am over simplifying but generally speaking why would someone not buy the cheapest 20 year term policy available from a reputable agency? Once the 20 years is over you SHOULD be self insured with assets you SHOULD have accumulated and children that SHOULD independent. Obviously life can happen but those are about the most standard outcomes you can project.

---

I think for the most part you're right. You should really just try to find the cheapest term insurance you can find as long as it's a reputable company and has the right features you need.

Stive is more familiar with all the different features available these days, but generally speaking I'm of the opinion that the only feature I really find valuable is the conversion feature.

It's certainly a low probability of needing it but I enjoy knowing that if I my situation changes and I all of the sudden need/want permanent insurance that I can get that even though I may be uninsurable at the later date.