Term Life Insurance-Term Life Insurance Rates

Gerrard L asked:


My wife and I are in our 40′s and 50′s. We have created A/B trusts and transferred our assets to them, and expect to have estates that will benefit from the estate tax saving these trusts afford.

We recently both purchased $1M 10-year renewable term life insurance policies that we expect to keep for 10 years. We chose not to use life insurance trusts because the purpose of the policies is to replace the lost income of the deceased spouse if one of us dies relatively soon, not to increase our final estate, and the trusts are somewhat costly. We each specified our own trusts as the beneficiaries, because we want the disposition of assets specified there to be used for this money. The trusts provide for the income, and principle if needed, to be paid to the spouse, and for the remainder to be paid to our child at the remaining spouses death.

The question of ownership of the policies is less clear. My lawyer says that it doesn’t make much difference who owns them, because the value (estate) taxed is only one year’s premium, not the $1M. My accountant says that the $1M is taxed, and that each policy should be owned by the other spouse to avoid tax on that amount. A friend said that there’s no way to avoid or significantly decrease the tax, so just leave the ownership as is (each spouse owns their own policy). A further fly in the ointment is that the insurance company (Massachusetts SBLI) makes some forms of trust ownership more difficult and costly.

I’m confused. What ownership is the best? What is the benefit of that choice?

Michael

Begi asked:


What is the best health insurance and life insurance policies? I am recently out of the military and need to purchase an individual health ins policy. However, I am not sure which ones are the best. I am a student, do they offer any good student policies? Also, is the SGLI to VGLI conversion a good change to make? If not, which is better term or whole life insurance policies?

Linwood Steel

Sugar asked:


Agents are always extremely keen about selling my family whole life insurance instead of term. According to the agents, whole life is preferable to term since it does not expire and as a result the beneficiary is guaranteed some payment upon the death of the insured. However, why would the insurance company profit from such a setup if they are bound to pay back an amount that is at least equal to the total amount paid?

I have tried to do some research on my own, but I still can’t seem to fully understand this matter. Any help will be greatly appreciated!

Efren Rodeman

Querious asked:


As part of a divorce decree, H paid W $5,000 per month for 10 years. Prior to the divorce, H&W had a term life insurance policy on H’s life. Following the divorce, W asked and H allowed W to continue the term life insurance policy which W paid for. The ten years have now passed. W wishes to continue the Term Life policy at her expense. H requests that she relinquish the policy.

What are W’s rights?
No children, no further alimony or financial dealings between H & W. She just wants to keep the term policy going as an investment against his death.

India Kirch

kelle asked:


Agents are always extremely keen about selling my family whole life insurance instead of term. According to the agents, whole life is preferable to term since it does not expire and as a result the beneficiary is guaranteed some payment upon the death of the insured. However, why would the insurance company profit from such a setup if they are bound to pay back an amount that is at least equal to the total amount paid?

I have tried to do some research on my own, but I still can’t seem to fully understand this matter. Any help will be greatly appreciated!

Reed Patria

Stupendous315 asked:


I am pretty much dependent on my guy for my life expenses. Our other policy was dropped (long story but mistake on the part of the insurance company) .
I hear terms “whole life’ and ‘term” what I need is something to help me get expenses paid for about a year should (God Forbid) anything happen. He is 57, non smoker good health but a tad high blood pressure. Suggestions of types or companies are appreciated. Thank you.

Blossom Corish

Fox Gibson asked:


Hi I was wondering if you would be able to look at a brief summary of my family situation and give me some suggestions.I want to get insurance but can u recomment some changes in what I presently have. I thank you.
I am married and have 3 childern (ages 9, 12, and 16) I just bought a waterfront home which is valued at 500,000 with a 300,000 mortgage. My jewrely is about 10,000. We have 3 cars a 2004 BMW, a 2002 Lexus and 1997 Jeep Wrangler. My husband works at a large manufacturing firm and earns about 125 K. I run a day care center from my home and earn about 45K. I don’t have any employees.
My kids all go to private school – which costs me about 25 a year. We honestly have no savings or investments and almost no discretionary income at the end of the month. ( which is a main reason I am writing this!)
I met with a financial planner and they suggested on purchasing a 50,000 variable life policy for each of us as an investement. I think i am worried about the high vost of these policies
This is what is presently covered
property risks
Ho3 with no endorsements or riders, dwelling 300,000, liability 100,000, medical payments 2500/person, uninsured/underinsured motorist 100,000,collision and other than collision (100 deductible)
Personal risks:
Life – my husband employer paid group term 50,000, we both have 50,000 universal life policy
disability – mr. murphy – employer paid group policy (LTD with a 90 day wait with benefits to age 65) I have no coverage
Medical: My husband – employer paid Major Medical (family plan) myself – i have an individual plan and still pay premiums

I thank you for whatever you can give me!!

Dianna Garrido

bearinacoat asked:


I am a U.S. citizen, and will be studying in the Scotland for a year. I am looking for a term life insurance policy to cover me at least for a year or few years while I’m abroad. I’m having a lot of trouble finding a company to do that, and each place I’ve contacted has told me different things.

I’m not looking for a health/medical or travel coverage, but life insurance that will go to my beneficiaries. I’m interested in a $250,000 or preferably a $500,000 policy. Any help or advice on this would be really appreciated. I’m not sure who to go to at this point.

Richie Feauto

carie asked:


Agents are always extremely keen about selling my family whole life insurance instead of term. According to the agents, whole life is preferable to term since it does not expire and as a result the beneficiary is guaranteed some payment upon the death of the insured. However, why would the insurance company profit from such a setup if they are bound to pay back an amount that is at least equal to the total amount paid?

I have tried to do some research on my own, but I still can’t seem to fully understand this matter. Any help will be greatly appreciated!

Glenn Reisher

asked:


im married, age 27 and interested in buying life insurance for me and hubby.
for just myself how much would my monthly be approx? im healthy dont smoke and dont want to pay too much money….
does term life give you an option of continuing on with them after the 20+ years term? would the premium go up?
i only need around 100, 000 i think. since i dont plan on dieing anytime soon but wouldnt want my family with no funeral money if i did. do my kids need any? they are 2 and 4 and i was considering the gerber life for them?
please help!

oh hubby is 27 and healthy non smoker as well

Ruthann Bowdle