Term Life Insurance-Term Life Insurance Rates

TP woman asked:


My husband needs term life insurance. He’s 52. What companies do you recommend? How much do you pay in premiums per year?

Clint Mcgrain

8robinhood8 asked:


From what I understand, if you have term policy with the initial death benefit of $500,000, that should be free and clear from being taxed considering it has no real cash value (correct me if I’m wrong).
I’m curious if my employer has life insurance set up and covers the monthly premiums. Does that change whether or not the amound to be received upon death is taxable.
I’ve looked at it both ways and I could see it being possible with either of them.
In case one, the employer is paying for my life insurance, and that could possibly be looked at as income.
On the other hand, it could simply be looked at as a benefit, therefore not changing the fact that it is non-taxable.
I’m just so confused, please help?!

Joya Borgese

Adding an accidental death and dismemberment rider to a term life policy is an ideal way for those who need extra protection to get combined and comprehensive coverage.

Accidental death and dismemberment riders are also known as “A D & D Riders” as well as “Multiple Indemnities.” Multiple indemnities mean that an insurance company will pay a multiple of the policy’s face value. This is the amount that the policy would pay to the beneficiary in the event of the death of the insured person.

One common example of indemnities is double indemnities. This pays an equal amount to the face value of the policy so if the insured person dies in an accident, the beneficiary receives the policy face value and the A D & D Rider face value, which is twice as much as the original amount.

Additional Occurrences Covered by an A D & D Rider

Depending on the rider coverage you choose to add to your term life insurance policy, A D & D Riders may also cover loss of sight or the loss of one or more limbs. Of course, you would have to double check the provisions of your policy as each carrier stipulates specific designated time frames when payment can be received from the date that your accident occurred. For example, imagine an insured person was in a work accident where a crate fell on the insured person’s legs, damaging the limbs enough so that their legs needed to be amputated a few weeks after the accident occurred. Usually the coverage period would depend on the state in which that the policy is drawn, however, a 90 day waiting period after the limbs are amputated is common for this type of rider.

The most important thing to keep in mind is that A D & D Riders do NOT cover death by any form of illegal or crime related activities. This type of rider also does not cover death by ******* or death by a malfunction of the body. An example of “malfunction of the body” would be someone that suffered a stroke or heart attack while driving. If the heart attack or stroke occurred before the accident and the accident was the result of that bodily malfunction, death as a result of the accident would not be covered. Accidental death means that an unforeseen circumstance caused death that is unrelated to the body. The death had to have been unexpected. This is where the term life insurance policy becomes important. While the insured would not benefit from the rider, they would most certainly benefit from the term life insurance policy.

Aside from accidental death, A D & D riders also cover dismemberment. In the case of the accidental loss of one arm or one leg only one half of the death benefit would be paid to the insured. In the event that the insured person suffered the loss of two or more limbs (combination of arms and legs), then that would result in the entire face value (death benefit) being paid to the insured. In this event, the A D & D Rider would be terminated or waived because the entire face value of the death benefit/term life insurance policy would have already been paid out. Most A D & D Riders also include the sudden loss of vision. The same principles apply. If one eye is lost only one half of the benefit is paid out. If both eyes are lost then the insured will receive the whole face value of the death benefit.

A D & D Riders are important to consider adding to term life insurance policies especially if you use your body to earn your livelihood. Make sure to get a term life insurance with rider quote from a few different carriers to ensure the best rate.



By: Sharon Taylor

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Rolanda Sigel

brokenboba asked:


I am 33 and I’m pretty sure that I want to get term life insurance. I have a wife and 2 kids. It’s affordable. I’m in good health. My question is should I get a 15 yr plan or 20 yr plan? Money is a little tight so I’m thinking the 500K or 750K plan.

Jeffery Sprowls

jeremyaka asked:


I am a 23 year old male that has type II diabetes. I have around $40,000 worth of debt from student loans, and I’m going to be getting married in a year. My parents currently have me covered so that if I die, they can afford my burial and other costs.

I am more concerned about getting a 10 year term life insurance policy to help my wife if I die after we get married. Once we have kids, I would plan on getting something like a 30 year term life insurance policy. Anyways, does anyone have any recommendations on how much coverage I should get and what companies have good rates (especially for diabetics?)

Fonda Magpusao

Curious George asked:


I have home and car insurance with Allstate for many years. Now, I am looking for term life insurance. I know exactly how much term life insurance I need. Do you know which one is better and cheaper company? I did some research and it looks like Prudential, Allstate, New York Life and State Farm are good companies. One of the criteria I have is that company should be there and should provide good service to my beneficiary if I die during insurance period.

Does insurance agent (how good or bad) matter? Or once I decide to a company, then can I go to any agent or should I look for something specific in selecting the agent?

Barry

Cindy asked:


I want to leave some money for my children once I am gone. Is it better to buy a Term Life Insurance policy or to invest that money where it will earn interest? What are the odds of a Term Life Insurance Policy paying out? What percent pay out? I’m thinking it is probably very low. So I am leaning more toward investing the money instead of using it to pay premiums. It seems insurance is more of a gamble than an investment. I don’t want to give my money to an insurance company for 20 years and have my children get nothing in the end. Can someone with knowledge of the insurance industry please give me a straight answer to this?

Noble Willick