# Opinions on life insurance **URL:** \ **Category:** In My Humble Opinion\ **Created:** [November 3, 2015, 6:42pm UTC](https://boards.straightdope.com/t/opinions-on-life-insurance/736544 "2015-11-03T18:42:20Z")\ **Posts on this page:** 9\ **Page:** 1
**Author:** ![MLS](https://avatars.discourse-cdn.com/v4/letter/m/919ad9/32.png) [@MLS](https://boards.straightdope.com/u/MLS)\ **Post date:** [November 3, 2015, 6:42pm UTC](https://boards.straightdope.com/t/opinions-on-life-insurance/736544/1 "2015-11-03T18:42:20Z")
My daughter and son-in-law are about to have their 3rd child and they don’t have life insurance. Despite trying, they seem to regularly be on the brink of living purely hand to mouth. (Both are employed, but do not have LI through their employer.) I would like to buy LI on each of them so that if either of them meets with an untimely demise there would be something to help raise the children. However, it has been forty years since I purchased my own life insurance, and I’m not up to date on things in this area. Therefore, I’m looking for opinions on the various LI companies. I have the feeling that some of them are pretty good and some are mostly ripoffs. If anyone can provide information and experience in this area I’d much appreciate it. Thanks. ---
**Author:** ![nearwildheaven](https://avatars.discourse-cdn.com/v4/letter/n/90db22/32.png) [@nearwildheaven](https://boards.straightdope.com/u/nearwildheaven)\ **Post date:** [November 3, 2015, 7:11pm UTC](https://boards.straightdope.com/t/opinions-on-life-insurance/736544/2 "2015-11-03T19:11:20Z")
Do they know you want to buy life insurance for them? That would be a wonderful gift for them. Talk to your own agent first about what kind of plan would be most appropriate. ---
**Author:** ![MLS](https://avatars.discourse-cdn.com/v4/letter/m/919ad9/32.png) [@MLS](https://boards.straightdope.com/u/MLS)\ **Post date:** [November 3, 2015, 7:18pm UTC](https://boards.straightdope.com/t/opinions-on-life-insurance/736544/3 "2015-11-03T19:18:04Z")
No, they don’t know yet. I don’t have an insurance agent. Our home and car insurance is New Jersey Manufacturers and they don’t offer life insurance. My own LI policy was purchased 40 years ago, and I’m not sure that the company I bought from (American General) is the best option today. ---
**Author:** ![Barkis\_is\_Willin](https://avatars.discourse-cdn.com/v4/letter/b/a183cd/32.png) [@Barkis\_is\_Willin](https://boards.straightdope.com/u/Barkis_is_Willin)\ **Post date:** [November 3, 2015, 8:25pm UTC](https://boards.straightdope.com/t/opinions-on-life-insurance/736544/4 "2015-11-03T20:25:46Z")
I’ve had good experience with Select Quote. They’ll get you a good deal with a reputable company. They’re an independent agency, so they do the shopping around for you. One downside is the agent you buy your insurance from will not be your point of contact for the insurance company. ---
**Author:** ![ivylass](https://avatars.discourse-cdn.com/v4/letter/i/9de053/32.png) [@ivylass](https://boards.straightdope.com/u/ivylass)\ **Post date:** [November 3, 2015, 8:28pm UTC](https://boards.straightdope.com/t/opinions-on-life-insurance/736544/5 "2015-11-03T20:28:15Z")
I got my term life insurance through [Zander Insurance](http://www.zanderins.com/default.aspx). $300 a year for a $500,000, 20 year policy. ---
**Author:** ![Omar\_Little](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/omar_little/32/269_2.png) [@Omar\_Little](https://boards.straightdope.com/u/Omar_Little)\ **Post date:** [November 3, 2015, 10:22pm UTC](https://boards.straightdope.com/t/opinions-on-life-insurance/736544/6 "2015-11-03T22:22:05Z")
Not all life insurance is equal, regardless of the company. Do some research to understand what types of insurance products that you would be investing in. I recommend, just buying term life insurance, where you lock in an annual premium for some time period, for a set amount of coverage. This normally results in the lowest cost for the specified amount of coverage, as opposed to some sort of whole life policy, which traditionally gives you crappy returns over time for the investment piece. Another thing to consider is the amount of the policy you would look to take out for them. Life insurance isn’t supposed to be some sort of lottery win. If the policy amount is extraordinarily large then you’re probably paying too much. The policy amount should be enough to help replace the wage earner’s after tax income for a number of years. As an example, the policy I have on my wife (who doesn’t work outside the home) is only for an amount to help pay for a nanny for several years to help take care of my kids until the get older. Whereas the policy on myself is significantly larger, to replace my income to support my family if I were to die. ---
**Author:** ![MLS](https://avatars.discourse-cdn.com/v4/letter/m/919ad9/32.png) [@MLS](https://boards.straightdope.com/u/MLS)\ **Post date:** [November 4, 2015, 12:01am UTC](https://boards.straightdope.com/t/opinions-on-life-insurance/736544/7 "2015-11-04T00:01:27Z")
Thanks; term is what I was thinking of. I’m not sure what the appropriate amount will be. I got $100 K on myself with the thought that if I croaked that would be equivalent to several years’ worth of my income. Again, this was 40 years ago when a salary of $10K per year was a lot. ---
**Author:** ![Flyer](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/flyer/32/7298_2.png) [@Flyer](https://boards.straightdope.com/u/Flyer)\ **Post date:** [November 4, 2015, 12:05am UTC](https://boards.straightdope.com/t/opinions-on-life-insurance/736544/8 "2015-11-04T00:05:40Z")
> [@MLS](#): > > My daughter and son-in-law are about to have their 3rd child and they don’t have life insurance. Despite trying, they seem to regularly be on the brink of living purely hand to mouth. (Both are employed, **but do not have LI through their employer**.) > > I would like to buy LI on each of them so that if either of them meets with an untimely demise there would be something to help raise the children. However, it has been forty years since I purchased my own life insurance, and I’m not up to date on things in this area. > > Therefore, I’m looking for opinions on the various LI companies. I have the feeling that some of them are pretty good and some are mostly ripoffs. If anyone can provide information and experience in this area I’d much appreciate it. > > Thanks. The bolded part is actually a good thing. It means that one part of their potential security is not tied to a particular job. How much, if any, of a surprise do you want it to be? If you buy more than a certain amount, the proposed insured is likely going to need a medical exam. Term insurance has its place, but contrary to what some people think, it’s not a panacea. The overwhelming majority of people out-live their term policy. But if you do get term, Transamerica is very good. You can also do a combo, where you get both term and whole. If you do get whole, look for a company that offers Living Benefits. Life of the Southwest if VERY good for that. ---
**Author:** ![MLS](https://avatars.discourse-cdn.com/v4/letter/m/919ad9/32.png) [@MLS](https://boards.straightdope.com/u/MLS)\ **Post date:** [November 4, 2015, 12:10am UTC](https://boards.straightdope.com/t/opinions-on-life-insurance/736544/9 "2015-11-04T00:10:55Z")
Oh, it’s not going to be a surprise. I just talked with my daughter about it tonight. Thanks for the suggestions.