Navigating Life Insurance - Are These Quotes Fair for a Healthy Couple Under 30?

How do I get started? My wife and I are both under 30, healthy, non-smokers, and have no medical issues. Since we’re planning to start a family soon, we want to get life insurance policies for each other.

I recently met with an agent my family has used before. While it was helpful, I want to know if the quotes I received are competitive or if there’s a way to find better rates without spending hours on the phone with different agents. I work in finance, so I’m eager to learn more and make sure we’re getting the best deal.

We’re considering $1M-$2M in coverage for each of us to cover our mortgage and future college costs for our kids. We realize we might need more than we can afford to cover everything, including grad school for four kids, so we’ve settled on the $1M-$2M range. I think $1M will probably be enough, but I’m open to suggestions.

Here are the quotes I received for 30-year term policies (which include both of us, with one as a “rider”) and no disability waiver:

  • $1M: $190/month
  • $1.5M: $281/month
  • $2M: $373/month

Do these rates seem reasonable for a simple 30-year term policy? I’d appreciate any advice on how to ensure we’re not getting ripped off or any tips for shopping around without wasting a lot of time. Thanks!

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I’ll assume “under 30” means both of you are 29.

The rates don’t look bad. However, I prefer having two separate term policies rather than one with the spouse as a rider, even if it costs a little more.

If you’re concerned about the rates, consider adding shorter terms to balance out the higher premium for the longer term. For example, you could have $1 million for 20 years and $500,000 for 30 years.

This approach can lower the rate while still providing early protection. Ultimately, it depends on how you want to set up your coverage.

There are many ways to structure your insurance to fit your needs and budget. This is a conversation to have with the professional you’re working with. Also, don’t hesitate to consult another expert to get a second opinion on the coverage you’re considering.

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You can go to term4sale.com and look at the prices yourself. I love selling Pacific Life to my clients because they are fast with their underwriting and a very reputable company.

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It sounds very high to me. You could each get a 1m 30 year term policy for about half that combined.

I agree with the other poster that you don’t want a spousal rider, you should have your own policies. Her coverage could end when you die (or she’ll have to convert it to something much more expensive).

An independent agent can shop almost all of the carriers at once for you so there is no need to meet with a bunch of agents. Just find someone who’s independent who specializes in life insurance and ask them to get you a few options.

Good luck.

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I am an agent and agree with this assessment.

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I also agree if there’s no medical issues

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I agree with you. The only price difference between two separate policies and a spousal rider should just be the annual policy fee (around $4). I strongly recommend going with separate policies. If you’re truly healthy with no past issues, you should qualify for preferred rates. At your age, you should also be able to get a policy without any bloodwork.

I think stacking term policies is a smart idea, as mentioned above. I’ve been in the business for 20 years and really enjoy helping people. One more thing to consider: think about a whole life plan in the future. Once your term policy ends, you’ll have no coverage. Lock in your premium now while you’re still young!

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Should I be trying to avoid bloodwork? The agent I worked with mentioned that bloodwork will be required.

Also, should we consider getting whole life insurance for both of us now? This will likely be our main life insurance purchase, with plans for additional coverage for children if our income improves significantly in the future.

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Shop around for better options. I have a $1M policy for 20 years that costs me about $360 a year. Consider getting two separate policies with different term lengths.

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A good rule of thumb is to aim for a death benefit that is 10 times your income. If you choose a term policy, make sure it can be converted later. Newer policies, like Index Universal Life, offer benefits beyond just a death benefit. They provide tax-advantaged cash accumulation, easy access to cash for purchases at favorable rates (I got a car loan at 2.9%), create a tax-advantaged retirement income stream, and can cover long-term and critical care expenses.

Check out this explainer video: https://youtu.be/v3rEL-ok4ys?si=wuTNSpP5ekhBB3eJ.

I often show clients how these policies can increase their estate value by $1 million to $3 million.

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Consider what financial responsibilities you want to cover, such as a mortgage, children’s future education, or income replacement. A typical recommendation is to have coverage equal to 10-15 times your annual income

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It’s often better to have individual policies rather than a joint policy with a spousal rider, as this provides more flexibility and ensures that both parties are fully covered.

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Don’t hesitate to consult a financial advisor or a life insurance specialist who can provide tailored advice based on your situation