Is this term life insurance worth it?

Question

The monthly premium stays the same for the entire term.
Female, non-smoker, 28 yrs old, in good health.

Monthly premium: $12.39
$50,000 coverage for 56 years (until I'm 85 yrs old)

What do you think? Is that a good deal?

I guess I should add that as of now, I have no children and would like to assume that I will not have children. I also have additional term insurace of $45,000 until I retire, and I have mortgage life insurance. When I die, there will be no debt besides funeral expenses.

$100,000 coverage for the same term is $16.73 per month.

The money would go to my spouse to help him out, should I die before him. If I outlive him, I'd cancel my policy probably or leave the money to my brother if he outlives me.

56 term exists. It's from the Bank of Montreal website:

No Pre-Set Terms
You decide how long you require coverage, from a minimum of 10 years and up to a maximum of age 85.

Answer 1

Hi....you wrote:

"Monthly premium: $12.39...$50,000 coverage for 56 years (until I'm 85 yrs old)....What do you think? Is that a good deal?"

--> I found quotes from 2 large Canadian insurance companies in the $8 range for Term 10, and $11-12 dollars for Term 20. (Term 10 = Premium locked in for 10 yrs, then renews at new and higher rate. Term 20 is for 20 years)

Term Insurance covers your short term debt or spousal income loss protection when you are younger and when you/your spouse are the most financially vulnerable.

Eventually, you will probably cancel some of your coverage as you may not need it, and some you will keep and convert to Permanent Insurance which will be used for estate planning purposes.

BMO Term insurance is not convertible (to the best of my knowledge) because BMO does not offer permanent insurance coverage.

You want to get as much convertible term coverage you can get and require. You never know how your health may change. Fast forward to age 50, and you need coverage for tax/estate planning purpose. However, your health has changed, and you are declined or the insurance companies heavily rates the policy.

With convertible term insurance, there is a provision which creates a contractual obligation for the insurance company to convert it to permanent insurance at standard rates without medicals. They cannot deny it, nor can they rate the policy.

You also mentioned you have mortgage term insurance. Did you buy it as part of your mortgage through your bank? If so, then you probably did not do any medicals. As such you are paying a lot of money for the same coverage if you buy individual term insurance through an insurance company.

Bank owned mortgage term is also decreasing coverage. As your mortgage goes down, the face amount of the insurance decreases. However, your premiums remain the level.

Answer 2

Just a couple of thoughts here . . .you're paying a charge to pay it monthly, so your $145 a year might actually be closer to $112 if you pay it in full. Worth it, if you ask me.

Second thought - the price is ok, but you could probably double that for just a few dollars more a year.

Third - you don't seem to think you have a NEED for life insurance. What is it, exactly, that you want this policy to DO for you? No kids, no dependents, WHY do you think you need life insurance? I don't think it's a good idea to have someone say, here's a policy, buy it while you can! You don't BUY things, just because they're there. That's not buying insurance, that's BEING SOLD insurance. If you don't have a need, and don't think you WILL have a need in the future, save your money.

Answer 3

Go talk to a licensed insurance agent and a financial planner.

You have a very limited knowledge on your needs for insurance over your entire life. Your needs will change and your health might change too.

The premium seems a little high for $50,000 in coverage. $50K is not a lot.

What if you outlive the term? Will you have large bills late in your life (medical bills, nursing home bills)?

You have a lot more issues to address than can be answered here.

Go talk to a professional.

Answer 4

This is a TIP FROM EXPERIENCE.
Term insurance is good if needed for the correct purpose. It is cheapest while you are young.
Make sure the policy will pay out to the beneficiary for death of the insured for ANY reason other than
suicide. I learned this the hard way. After paying premiums for over 20 years for term insurance on husband,
he died suddenly of a heart attack. The insurance company would not pay out. Death had to be from
an accident.

Answer 5

probably don't need level term all the way until 85. See what it costs for policy to age 65 or 55, at which point presumably your need for life insurance will be a lot less, i.e. kids grown and out of the house

Answer 6

there is no such thing as 56 year term. You can get 30 year (I have heard rumor of 35 year) and renewable annually after that. And like some one else said, for some spare change, you could double the policy.

Answer 7

If you have, or plan, to have small children, go for as high as you can get (at least $100,000) with double indemnity. At age 85, $50,000 may seem like chunk change. But at least you'll have the high benefits in case they are needed.

Answer 8

The best place to get an answer is with experts in the field, not on the net. seek out one!

Answer 9

Only if you die.Then its worth it to the beneficiary.