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Life insurance
Posted by: kap
Date: April 16, 2012 04:06PM
Who offers the best rate for women? There are three women in the family who needs the insurance. Their age is in this respect, 48, 49 and 55. Tia



West San Gabriel Valley, California ... for the time being :-)
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Re: Life insurance
Posted by: mattkime
Date: April 16, 2012 04:35PM
life insurance should be purchased to financially care for loved ones left behind, replacing an income stream.

it should be part of a larger financial plan.

you'll get better info at [www.bogleheads.org]



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Re: Life insurance
Posted by: AllGold
Date: April 16, 2012 05:00PM
There's no one-size-fits-all with life insurance. Rates vary widely with age and health conditions. Talk to a licensed insurance agent, preferably one who is independent and can offer several different insurers.



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Re: Life insurance
Posted by: Robert M
Date: April 16, 2012 05:12PM
Kap,

Impossible to answer. Insurance companies take tremendous number of factors into consideration as a part of the application process. Even the health of the parents (and their medical history) comes into play. They even consider whether or not the applicant has had moving violations in the last X number of years. In your case, the company will evaluate each of the women individually. The rate for one may not be at all the same for the others.

There is also the question of what kind of life insurance, i.e. term, universal, whole, etc. Each type serves a different purpose. I was told to look at it this way... If your younger, bet that you'll live and go for a whole life or universal life type policy. If your older, bet that you'll die and go for a term policy. It's a very simplistic way of looking at it. Term is _much_ less expensive than whole life and universal policies.

And, Matt is correct. Life insurance should be a part of a larger financial plan. One of the questions a financial advisor and agent will ask is why do they need life insurance. I disagree with Matt that it is intended to replace an income stream for the individual(s) left behind. It's actually a one shot payment to the beneficiary. What that individual does with it, is up to him/her. If he/she is smart, he/she will use the money wisely. Here is an example:

Imagine a couple in their late 40s has a mortgage of $350,000.00. No car payments. Just the normal monthly expenses, i.e. maintenance (think of it as rent) on the apartment, telephone, auto insurance, grocery bills, auto fuel, etc. The combined income handles all of their bills and they can even put a little bit away each month. But, should one of the individuals pass away, the one left would be in financial trouble. He/she would not be able to handle all the normal bills _and_ the mortgage payment. So, to ensure the mortgage is never an issue, they each get $500,000.00 dollar 30 year term policy. That way, in the event one passes away, the other can easily pay off funeral expenses (if any), pay off the mortgage so it's no longer an issue, and pay the maintenance on the apartment for a very long time.

At this point, the women need to talk to a reputable financial advisor as well as a reputable insurance agent that represents a good selection of highly rated insurance companies prior to making any decisions.

Robert



Edited 2 time(s). Last edit at 04/16/2012 05:18PM by Robert M.
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Re: Life insurance
Posted by: kap
Date: April 16, 2012 05:15PM
Sound advice. Will keep that in mind as we are searching for an licensed insurance agent. Thanks Robert M.



West San Gabriel Valley, California ... for the time being :-)
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Re: Life insurance
Posted by: Dennis S
Date: April 16, 2012 06:11PM
Many "experts" recommend against whole life and universal.
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Re: Life insurance
Posted by: kap
Date: April 16, 2012 06:12PM
Quote
Dennis S
Many "experts" recommend against whole life and universal.

We are merely looking to purchase a coverage for funeral expense. It's all we could afford at this point in time.



West San Gabriel Valley, California ... for the time being :-)
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Re: Life insurance
Posted by: Robert M
Date: April 16, 2012 06:24PM
Dennis,

True... But, the proper answer is dependent upon the individual purchasing the insurance and his/her situation and goals. That's why speaking to a financial advisor and insurance agent is key.

Robert
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Re: Life insurance
Posted by: Robert M
Date: April 16, 2012 06:27PM
Kap,

A term policy will likely do the trick. It likely doesn't have to be a great deal of money, i.e. $250,000.00. However, funerals and everything affiliated them don't come cheap. You might want to have them find out what the average cost of the funeral and related expenses will be and then buy a policy that accounts for the estimated expenses as well increases since those number will only increase over time as well as surprise expenses related to the passing of a family member(s), i.e. tax bills. Again, speak to an advisor and insurance agent.

Robert
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Re: Life insurance
Posted by: Dennis S
Date: April 16, 2012 07:08PM
Is AM Best still the place to go to check out insurance company's ratings?
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Re: Life insurance
Posted by: mattkime
Date: April 16, 2012 08:10PM
might be a good idea to compare the price of life insurance to the price of a funeral. how long would they need to save $x a month until they have it covered? maybe they could find a way to pool their savings in the case that one of them dies...that way they get to the cost of the funeral 3x faster.

yeah, its weird, but so is an insurance company profitting (and they DO profit) off a plan to ensure that burial costs are covered.



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Re: Life insurance
Posted by: AllGold
Date: April 16, 2012 08:19PM
Never buy a term policy for funeral expenses or "final expenses". It's too easy to outlive the policy.

For that purpose, you want either whole life insurance or a "pre-need" funeral/burial plan.



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Re: Life insurance
Posted by: kap
Date: April 16, 2012 08:39PM
Quote
AllGold
Never buy a term policy for funeral expenses or "final expenses". It's too easy to outlive the policy.

For that purpose, you want either whole life insurance or a "pre-need" funeral/burial plan.

Definitely keep that in mind. Thanks!



West San Gabriel Valley, California ... for the time being :-)



Edited 1 time(s). Last edit at 04/16/2012 08:39PM by kap.
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Re: Life insurance
Posted by: patcassidy
Date: May 09, 2012 02:17AM
Women are usually charged less when it comes to life insurance, because statistically, they outlive men. The resources and forums mentioned above are a great start; you can also find free yet inexpensive term life insurance quotes online on a large aggregator website. On an aggregator website like AccuQuote.com, you'll find several things to help you get started:
• A life needs calculator, which will help you find out how much coverage each woman would need (also putting their needs in perspective)
• A free quote engine- with reputed national carriers all rated A- and above
• Licensed agents that don't push one carrier over another and can still help you find good deals (especially if the three women are related).
• Informational resources- to help you find out whether whole life is really a good option. Take your time and do your research.
Good luck, Kap.

Pat Cassidy
Disclaimer: I work for AccuQuote and this is my personal opinion.
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