I’m planning to take out life insurance for my family of four (soon to be five in January). After some research, I think term life insurance is the best option. Should my husband and I take out policies only on each other, or should we include our children too?
Also, what are the best companies for a 40-year, $5 million policy? We’re all healthy, except I have ulcerative colitis, which has been in remission since 2021 due to medication. What do you recommend?
The best life insurance is the life insurance that’s in force when you die. My daughter has life insurance and she’s not even 2 years old. Most term policies don’t last for 40 years.
No reason for a 2 year old to have term. None.
I write permanent policies for juveniles as a way to grow cash with tax advantages for college or whatever they choose to do with it. The parents own the policy, and the juvenile is the insured. A $12K yearly contribution can grow to $300K by the time they turn 18.
Get more opinions, but I’d recommend term life insurance for you and your husband. For your kids, if they’re really young, you’ll likely only be able to get permanent life insurance.
The advantage is that it’s cheapest when they’re young, and it lets you build cash value from an early age. By the time they’re adults, they’ll have built up a good amount of cash value that they can borrow against for whatever they need.
This also comes with some tax benefits.
Assuming you’re taking immunosuppressants for your UC, most insurers will likely charge you more because of that.
Find a good independent agent or broker who can shop around with different carriers to find the best rates and value for both of you.
Good luck and congratulations on your growing family!
As a broker with ulcerative colitis myself, I recommend talking to an independent broker in your state to find the best rates. Many insurers will charge more for a large term policy if you have UC.
If you’re set on a $5 million policy for both you and your husband, term insurance is a good option.
If you’re concerned about paying for 40 years of term insurance and not getting any money back unless you pass away during the term, consider a universal life policy. This type of policy with a return-of-premiums rider could offer a higher death benefit, return premiums, and competitive rates compared to some term policies.
What is the best way to find an independent broker in my state in your opinion?
I’d give you my information,but self promotion isn’t permitted so I can’t help much unfortunately.