I'm interested in getting life insurance?

Question

I have 2 kids both under 2 yrs old, I'm 26 yrs old, I have no health problems. 2 of my grandparents died of heart attack, and so did 3 of their parents. I don't smoke. I am aspiring to be a chicago police officer. I've already passed the written exam. I'm looking at $1M payout to my kids, but I don't want it paid out to them in one payment, I want them to receive fixed payment monthly for the rest of their life. What life insurance policy do you recommend?? Finance specialists only!

I don't want to tell anyone at all about this. Not the kids when they come of age, not their mother, not my siblings, not my parents, only the company/entity responsible for distributing the funds. I guess an irrevocable trust (i think that's what they call it) is the best thing. Sanjua & Drcaryl thank you for providing the web sites.

Answer 1

I am no financial specialist but I am very involved in my families life insurance, and I have a great insurance expert whom I work with, My husband is 10 years older than I am and we have 2 kids , when I had my son I was 21 and we got our first policy of 500K (each of us)and then when we moved into our bid expensive house we got another 500K(each of us) Because if he died I would be screwed, and vice versa.

You should look into getting term policies, not whole life they cost alot more, at your age you could get a relativly cheap policy , but being a cop could hurt the premium, I was 26 when we got my additional and it was only 16$ a month. for whole life it would have been 350$ a month. Look into your employer about term life, they probably be the best at it because they know what their officers face. Make the kids the beneficiary, you can add a trustee to the account to distribute the cash as you see fit. Also remember that the kids will get money from social security is you die, and money from the department if you die in the line of duty. Remember to make a will, insurance goes by beneficiay. Will's cannot touch your life insurance.

For outside companies, that are reputable, use:

NY life or
Met Life
Prudential

They might be a little more expensive but are known for there honesty and name.

Answer 2

I might suggest you to visit this site where onel can compare rates from different companies: http://PROTECTIONQUOTES.NET/index.html?src=2YAxmlhbOY84

RE :I'm interested in getting life insurance?
I have 2 kids both under 2 yrs old, I'm 26 yrs old, I have no health problems. 2 of my grandparents died of heart attack, and so did 3 of their parents. I don't smoke. I am aspiring to be a chicago police officer. I've already passed the written exam. I'm looking at $1M payout to my kids, but I don't want it paid out to them in one payment, I want them to receive fixed payment monthly for the rest of their life. What life insurance policy do you recommend?? Finance specialists only!
Update: I don't want to tell anyone at all about this. Not the kids when they come of age, not their mother, not my siblings, not my parents, only the company/entity responsible for distributing the funds. I guess an irrevocable trust (i think that's what they call it) is the best thing. Sanjua & Drcaryl thank you for providing the web sites.
Follow 11 answers

Answer 3

You have some good answers here already.

Bottom line is that you need to talk to both an insurance agents and a lawyer. These two professionals need to coordinate their efforts. the agent can set you up with the right amount AND TYPE of insurance. Keep in mind that you CAN own both term and permanent insurance.

The lawyer can write the legal documents that you need so that if you die, a trust with very specific language will determine who and how the money from the insurance policy is used.

When dealing with large amounts of money (and a million is a lot) normal people do strange things to get their hands on it. Their desires may not always be what YOU want for your kids. Setting up the legal documents allows your wishes to be followed.

I applaud your desire to plan ahead.

Good Luck

*

Answer 4

Given your situation I would recommend a 20 or 30 year fixed term insurance. This means that your insurance payments will remain the same for 20 years (or 30 depending your choice). After that time the payments will jump really high on price and increase yearly.
Having this insurance for 20 (or 30) years is good because your payments will be realtivelity low for 1M and it will provide money for your kids if you pass away when they are still young.
Also I would advice to apply as soon as possible because fue to your profesion some companies might rate you up.
Good Luck

Answer 5

The primary thing you need to do while you are waiting on the underwriting on your life policy is meet with a lawyer to set up a trust for your kids. If you name them the beneficiary, there will be a nasty court battle and their guardian will have access to all the funds. If you create a special type of trust, the trustee will have very specific powers about how that money should be used for your children's benefit.

Talk to a life insurance broker about you policy to get it rolling. Grandparents don't usually factor into family history and certainly finding a company that doesn't care about it will be easy. The face amount will hinge primarily on your current income. A qualified broker should be able to explain this.

Answer 6

Without more information, it is impossible to answer the question. 5% itself is very good, but 5% of WHAT, and when does the 5% kick in? From the get-go; after some period of time, or what? And are the policy expenses drawn from that 5%, or what? You ave received a lot of "yes, no," black and white answers here. But disregard them all, for now. What you need is a written proposal for the life contract, which should spell out all the particulars. Get THAT, and then let's see what we really have, here.

Answer 7

Term Life is cheaper but it expires. Whole life costs more but it is good for your lifetime. You can set up payments when you buy the policy.
Look at several companies, there are not for profit insurance companies out there like Modern Woodmen of America.

Answer 8

This is not an insurance problem per se. What you want to set up is an annuity payment from your insurance. You can ask for this to be a part of your coverage with most policies.

Answer 9

You need a WILL and a TRUST to set up guardianship for your kids, and then ANY POLICY can pay the trust.

Talk to your local agent about quotes. DO NOT BUY OVER THE INTERNET.

Answer 10

I know of two agents in Chicago that would be more than willing to help you out with this and to run a free financial analysis for you and your family. Just email me if you want me to set this up for your.