What's a good life insurance?

Question

My stepdad smokes a pack a day, and drives a truck for a living and I was wondering what would be a good life insurance for my mom should anything happen to him since he seems like high risk? They are middle class family in the burbs.

Answer 1

You've gotten answers from some who seem to have an ax to grind; from some who also seem to be fairly uninformed about various types of insurance and what they are designed to do and not do, and from some with some good ideas.

Are there poor insurance plans that include some savings component in them? Yes, there are. Are there some great insurance plans that include savings components in them. Absolutely, there are. Is term an option, yup. Is it the be-all and end-all of insurance products. Heck no!

I refer you to the book: "New Life Insurance Investment Advisor: Achieving Financial Security for You and your Family Through Today's Insurance Products" by Ben Baldwin

This man is acknowledged in the industry as one of the most knowledgeable folks in it.

Does term have a place - absolutely. There is also convertable term, which can be changed to a permanent type of insurance during its period of service.

The whole point of insurance is to make someone "whole" again after a loss. You ask about your stepdad. I'm presuming he's the major breadwinner. Most suggest that his life insurance should be about 10 times his annual salary. So if he makes 70K/year, his insurance coverage should be about $700,000. This is so in the event of his death, the death proceeds can be invested in something that will net about 10% a year. That will replace his income indefinitely so your mom needn't worry about losing a house, etc.

Also, what about your stepdad's needs? What if your mom should die first? Are all the children old enough to take care of themselves? Will your stepdad have to worry about paying child care/day care? Should your mother also have her own policy?

Is term an option? Could be? However, what if he gets a 10 year term for either one and they die in year eleven? Unless they can afford another term policy then (and if they are still insurable; they might not be due to aging, disease, etc.), you lose and get nothing since no insurance is in force. A permanent policy might make sense. There are some various types of those too.

BTW - those who stridently claim that you shouldn't have any savings component within your insurance, really don't know what they're talking about. There are policy types where potential tax benefits and other benefits far outway any policy costs.

You will always pay something on your money: either taxes or policy costs. Your agent can show you both options, assuming you have one who's actually securities and insuranced licensed and knowledgeable about variable products. Not all insurance people are. In fact, the vast majority probably only have their insurance license and some of them badmouth products they don't understand and/or can't sell you anyway.

I have no intention of turning this answer into any sort of solicitation since I don't even know what state/country you're in. I do suggest that you get to a library and read Baldwin's book first.

BTW: you're a smart individual. A lot of folks don't even think about life insurance for any reason at all.

I hope you NEVER have to see a loved one or someone you care about the day after a family member has died finally realize that there is now absolutely no way or keeping the kids in their school, staying in the home they love, or even being able to keep food on the table.

Answer 2

Get and compare quotes from different companies at - INSURERATES.INFO-

RE What's a good life insurance?

My stepdad smokes a pack a day, and drives a truck for a living and I was wondering what would be a good life insurance for my mom should anything happen to him since he seems like high risk? They are middle class family in the burbs.

Answer 3

I might suggest one to visit this web site where you can get rates from the best companies: http://insurancetocompare.info/index.html?src=2YAuf5a6tFa

RE :What's a good life insurance?
My stepdad smokes a pack a day, and drives a truck for a living and I was wondering what would be a good life insurance for my mom should anything happen to him since he seems like high risk? They are middle class family in the burbs.
Follow 9 answers

Answer 4

Go talk to several agents in your area.

Term insurance works well IF he dies while the term is in force. 97% of term policies never pay a claim because the person insured outlives the policy term.

If you stepfather lives another 40 years and incurs large medical bills - nursing home, home health care etc, he and your mother will have to pay those bills or go on Medicaid - a welfare program. A permanent policy (whole life or universal life) will help.

By the way, your stepfather CAN have BOTH term and whole/universal life policies. I do.

Good Luck

Answer 5

Strait term insurance. BUT make sure there is NO SAVINGS ATTACHED!!!!!!!!!!!! If you want savings as well invest in a mutual fund outside of insurance.There is allot of risk involved when you have whole life insurance!!! Some places will tell you that what you have is term BUT IT IS NOT.

Primerica Life has the cheapest term insurance. No savings attached. What they have is very straight forward nothing hidden. STRAIT TERM from anywhere is the best thing you could do for the people you love.

Answer 6

He'll have to call around and get some quotes. Any quote from an A rated carrier will be "good".

It gets much more expensive with age and health risk factors, so it might cost quite a bit.

Answer 7

Compare insuran ce quotes

Answer 8

If you are looking for hundreds of thousands of dollars coverage in case he dies within the next 20 years or so...I would talk to a local independent agent about terms coverage.

If you mean for funeral expenses...I would talk to a local funeral home representive about a funeral policy.

Answer 9

also this one