32F with two children. Was quoted from a broker $286/monthly for 4 policies ($800,000 term+perm for me and $50,000 perm for each child). New to this and wanted to know if this is a decent price or is this too much?
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Do you have any assets? What type of policy is this? And why are you looking to insure your children?
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I don’t have any assets, but I have one term policy and one permanent policy for myself, both with living benefits. I was advised that the policies for my children are good investments they can use for college when they get older. I believe it’s wise to insure everyone, as tomorrow isn’t promised to anyone.
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Term life insurance is usually cheaper than whole or permanent life insurance.
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Health conditions, lifestyle choices (like smoking), and family medical history can affect rates.
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On average, term life insurance might cost between $20 to $50 per month for a healthy individual in their 30s for a policy with a $500,000 benefit. Whole life insurance can be more expensive, often ranging from $100 to several hundred dollars per month.
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When it comes to gender, Women often pay lower premiums than men due to longer life expectancy.
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I can’t provide specific advice without knowing the terms of the quotes and the ages of the kids. However, it’s wise to consider an affordable term policy with a larger death benefit to protect the children. At the same time, starting a whole life policy can help you plan for retirement early.
For your term policy, it’s better to choose one with living benefits, ensuring that you’re protected as well. You need to prioritize your protection before focusing on the kids.
For whole life insurance, opt for a policy that includes a long-term care rider, as it is also designed to protect you.
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I’m not certain about the specific details, but a $50,000 policy for children would likely cost around $60 a month for each child, depending on their age and the carrier I use for whole life policies.
These policies also include Guaranteed Insurability Rider (GIR), allowing them to purchase more coverage up to $1 million until they turn 47, starting at age 21. They also come with a waiver of premium.
Make sure to include the GIR and Waiver of Premium in the children’s policies as well!
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Genuine question why the perm for you and the kids instead of opening an utma for them and investing?
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I have no clue. It’s truly my first time looking/learning any of this so I’m just giving what the broker told me. What’s an utma?
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An investment account for kids you maintain control over until the age of majority which can vary by state. Before you sign anything please sit down with an advisor that doesn’t work for a life insurance company. Most of their agents don’t know the first thing about investing so they try and sell perm. Insurance which they make a shit ton in commissions
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An investment account for kids you maintain control over until the age of majority which can vary by state. Before you sign anything please sit down with an advisor that doesn’t work for a life insurance company. Most of their agents don’t know the first thing about investing so they try and sell perm. Insurance which they make a shit ton in commissions
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Honestly, insurance recommendations should be based on a needs analysis. This analysis requires a lot of information from you to fully understand your situation and financial responsibilities. So, it wouldn’t be fair to answer your question based on just the few details you’ve shared.
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You don’t need to do a needs analysis to determine whether it’s expensive or not that just determines the amount of coverage.