I want to get a 30-year term life insurance. How I understand it, you pay the same monthly payment, no matter what, for 30 years. If you die, you get the money; if not, then you don’t. I live in colorado, and I hear insurance is more expensive here. I’m thinking about moving soon. Mabybe Cali or something. Should I wait to buy? Because I would be saving a lot of money if there where a difference in monthly payments. Or will the insurance go down when I move?
I’m 20 now. Just looking for something so my wife won’t have to worry about money. No kids (yet). Oh I don’t borrow money, I was just using that as an example.
I’m 20 now. Just looking for something so my wife won’t have to worry about money. No kids (yet). Oh I don’t borrow money, I was just using that as an example.
Alexander K 9:03 pm on February 13, 2010
Two things:
1. I don’t think the price of life insurance matters on state where you live, it matters more on your personal situation, so you can get it now.
2. It seems you may be missing a point about getting a term life insurance. The life insurance is purchased to protect your loved ones that depend on your income in case something happens to you. If you have small children, they need to be protected until they are say 20 years old.
A 30 year term policy most definitely costs much more than 20 year policy. You will be paying all this extra premium, and then 10-15 years from now will realize that you need a different policy altogether. Why different policy? First of all your income will be much higher at that time and what seems today as sufficient coverage may no longer be adequate 15 years from now. Also, the life expectancy keeps going up, which means that life insurance will get cheaper 10-15 years from now. True, you will be older at that time and coverage for an older man or woman at that time will be more expensive but it is very likely that a 10 year term policy for a 45 year old will cost less in 20 years than a 30 year policy for a 25 year old today.
My point is — you probably do not need a 30 year term policy today and you will save a lot of money by getting a 20 year policy. You are taking one risk that is if you are seriously ill in 15 years you may not be able to get another policy at that time, but you may not even need it if your dependents are out of the house at that time.
Insurance agents will push the longest term possible on you as those are the most profitable policies, I am surprised they didn’t push a Whole Life policy on you, they love that garbage.
Anyway, you get my point; buy as much insurance as you really need.
Danny42378 9:03 pm on February 13, 2010
I’m sure if death visits you before you go, you can convince him to give you some extra time so you can complete your move.
Change policies if you get a better deal in the future.
Wondering Mind 9:03 pm on February 13, 2010
Depending on where you live California is more expensive I’d say get it now in colorado but in 30 years if you die you cant get the money your dead?
aaron p 9:03 pm on February 13, 2010
There shouldn’t be much if any difference. Don’t believe me? Ask your insurance broker for a quote in CO and another in CA. Oh, and yes, you never know when you will die. in fact it could be during your move.
Zach C 9:03 pm on February 13, 2010
if you need the insurance now get it. you can always shop around after you move.
brando4755 9:03 pm on February 13, 2010
You’re not locked into term life. If you stop paying, the policy just goes away. So you could just get a new one after you move. If the terms are the same but the rate is lower, then swap.
mbrcatz17 9:03 pm on February 13, 2010
I don’t know how old you are, but if you’re under 30, and thinking of term insurance, why the HECK are you talking monthly payments?? That monthly payment will ADD $5 a month, at least, in service charge.
You can get $100,000 of term for about $100 A YEAR. Or, in monthly payments, $20 a month. DO THE MATH. Just pay it in full!!!
mindshift 9:03 pm on February 13, 2010
There are so many variables that it is difficult to say the least expensive company is the best choice. Below is a link that may help. There is lots of info, and calculators to help you. Unfortunately, these calculators may want your email address. I always give them my secondary email in to avoid spam.
The Rabbi 9:03 pm on February 13, 2010
You buy life insurance with your age and health. Since the payment is fixed, it pays to start young. Take it for 30 years, it will take you to 50 then and your children (hopefully) will be grown. Buy it now and it really doesn’t matter which company for term ins. You can add more later or replace if rates go down, which is the trend now. You save about 8% by paying annually, one month’s payment, is what the other agent meant.
Mark S 9:03 pm on February 13, 2010
You should have no problems AT ALL in getting the insurance in one state, moving and paying the same amount in another state. What you may be doing is mixing up life insurance with car insurance. Now, there you would be right. Insurance can be cheaper in one state, you move and pay higher in the state right next door. That I would agree with you, but life ins. you will pay the same in CO as you will in AL, AK, HI or CA. Your policy is with a company, not a state.
Do you own a house? Are you the sole breadwinner or does your wife also work? These two questions are most important. They will decide if you should get insurance now. Even if you rent, it would be a good idea to get a policy that can move with you from state to state. Anything you have at work is accidental- won’t pay except by way of accident. And it doesn’t cover you for as much as it should.
Would you sit down with an agent who will go over your finances, from top to bottom, and by asking questions will help develop a Full and Complete financial analysis for you, and won’t charge you a monetary fee? This analysis will put together an insurance package that is good for you NOW and can be updated in the future, as your needs change. It is level term and would be ONE policy that would cover you and your spouse, any children in the future could be added to the policy. By asking the questions, they will put a plan together that fits YOU and only YOU.
Let me know if I can be of any assistance.