I could do the homework, I know, but I’m feeling lazy and I thought a doper might have some insight.
My credit union is offering a family plan that gives $100,000 coverage for the rate of $15 a month. The benefit is halved at the age of 70 (which is 12 years away for me).
Does this sound like a decent rate, in general? The $15 would be automagically deducted from my account, a convenience I would be willing to pay a premium for.
mmm
Since the OP is looking for advice, let’s move this to IMHO.
Colibri
General Questions Moderator
You need to provide a lot more info for this to be answered.
You’re apparently 58 years old. Male or female? Height & weight? Smoker? Any major health issues? Any dangerous hobbies?
$100k coverage for $180 a year is a terrible rate for a healthy 25 year old female non-smoker whose most dangerous activity is knitting. It’s a fantastic rate for a 75 year old 2 packs a day 400 lb male with cancer and diabetes with a private pilot license.
Also, what is “family coverage” ? Every member of your family is covered for that single price?
This is a conclusion I could have drawn myself, but thanks, I guess.
Male, non-smoker, in general good heatlh, no inclination to take up wire walking or base jumping.
Coverage extends to spouse and offspring, I assume (I don’t know what else ‘family’ could mean in this context).
mmm
That certainly seems to be cheaper than what a 58-yo “good” health male non-smoker could get on 15-year (or even 10-year) term life insurance.
I would question if the rate quoted is accurate for your situation or just a “best-case” rate. Also when and how the premiums can change. It’s pretty clearly not a fixed-premium guaranteed term policy.
You can do some pretty easy comparison shopping of fixed-term life insurance here: www.term4sale.com
As usual with insurance decisions you need to consider what risk you are actually insuring against and how much coverage is appropriate.
I suggest you just call a local insurance agent and ask for some quotes. They’ll ask the necessary questions and provide you with a half-dozen companies that (in my experience) will be with 20% or so of each other.
There’s really no way anyone else can answer the question of whether it’s a good rate.
Based on this State farm example it would seem to be within the range of acceptable rates. One thing with these plans is the fine print re coverage. You need to read them very carefully.
Check and see if it covers any death, or just accidental.
If this insurance is being offered to you, in a solicitation, there is one thing you can be sure of: It is a much better deal for the sellers than for the buyers.
I think this applies to any insurance policy.
Anyway, I read the fine print and it seems I get only 60% of the hundred grand for my spouse. She, of course, gets the entire enchilada when I kick it. Doesn’t seem fair.
Thanks for all the replies,
mmm
Is this whole life or term?
Actually, I’m not sure.
Term has a defined end point, does it not? There isn’t one that I can see. It appears to continue as long as payments are made.
Whole life insurance, as I understand it, is basically a sort of savings account that you can borrow from (nothing like paying to borrow your own money). This does not apply either.
I guess, term?
mmm
No, If you decide you want insurance and go out shopping for it, you will find a lot better deal than if the offer just falls out of your monthly bank statement with boxes to tick. Most of those solicitations cover you only if your death is accidental, which can offer very “attractive” rates