Hey everyone, I’ve been looking into getting a 20-year term policy for $500,000. It’s just me (36M) and my wife (27F, beneficiary).
A friend approached me about getting a policy through New York Life, which has great ratings, but I’m wondering if I should shop around for better deals or more reputable companies.
Do you guys have any recommendations on companies to consider (or avoid)? Also, what’s a normal monthly price for someone in the best health category?
NYL is a solid company, but that doesn’t mean their rates are the best. Always good to compare.
Since you’re 36, you might want to consider a 25- or 30-year term instead of 20, depending on when you plan to retire.
For someone in top health, a $500K 20-year term policy usually runs between $20-25/month with reputable carriers like Guardian and MassMutual, which have ratings just as strong as NYL.
Bronte4 said: @Kieran
Why is it better to have your term policy last until retirement?
Because term insurance is usually meant to replace your income if something happens to you. By the time you retire, you ideally don’t have an income that needs replacing.
The idea is that by then, you’ve built up enough in savings, investments, or retirement accounts to take care of your family without needing life insurance.
It really depends on your state, health, and whether you want living benefits. Some of the top term life companies include National Life Group, AIG, Foresters, and Protective.
Without knowing more about your health and background, nobody can tell you which one will be the best for you.
With term insurance at your age, make sure to look at convertibility options.
Some companies let you convert your term policy to permanent insurance later without another medical exam. This could be important if your health changes down the road and you still need coverage.
Kieran said: @Zinnia
Why does convertibility matter? Most people don’t need life insurance beyond retirement.
Because right now, you’re probably in the best health you’ll ever be. If you lock in a policy that lets you convert later, you never have to worry about getting denied due to health issues.
If you don’t need it later, great! But if something happens and you still need coverage, it’s good to have the option.
Go for a longer term—30 or 35 years would be better at your age. Also, if you can afford it, go for a higher coverage amount. $500K might not be enough if you factor in inflation.