Life Insurance: Where the hell to begin?

**RootSkier** · 08-20-2015, 02:20 PM

I'm 35 and I have one shorty with another on the way. I currently only have ~$100K in life insurance through a work plan that did not require any sort of medical exam.

I figure I need at least $500K (likely more) so if I eat it the wife can pay easily pay off the mortgage and set aside enough for the kids' college fund. She makes decent money and is infinitely employable so I am not super concerned about her earning power, especially if she has no mortgage.

I have been Googling around but it's a little overwhelming. The websites that purport to provide multiple quotes from various places seem shady as fuck. Are there reputable sites, or am I going to get spammed into oblivion by filling one of these forms out and giving them my email/phone number? Am I better off to talk to a local broker who works with mutliple carriers as long as he/she is willing to disclose his/her commission rates?

Secondary issue. I have a friend who is in nearly identical circumstances. He might regularly visit places where smoking the green leafy is 100% legal. Would he be better off abstaining from those sorts of things for awhile before applying for life insurance or is it irrelevant in this day and age?

**AK47bp** · 08-20-2015, 02:29 PM

Just did this. Got 500k and had to pee in a cup and give blood.

I abstained from weed for a couple weeks so was clean.

My understanding was if weed came up positive you will pay smokers rates but not necessarily be declined.

**RootSkier** · 08-20-2015, 02:35 PM

How old are you, how much did $500k cost, and for how long?

**Danno** · 08-20-2015, 02:41 PM

I just went with my existing auto/home insurance company. that's a good place to start.

**Timberridge** · 08-20-2015, 02:50 PM

Do not lie about any of your high risk activities, smoking, driving record, depression, etc.

**Adolf Allerbush** · 08-20-2015, 02:51 PM

Originally Posted by Danno

I just went with my existing auto/home insurance company. that's a good place to start.

That's what I did too. I did 20 year term for 6 * Current Salary...then my company offers 4 * salary (variable as one progresses through their career)...I figure thats' enough.

ETA: Since your wife is very employable, I think less than what I did makes sense...my better half is a stay at home mom until our little ones get bigger so we wanted a little more coverage.

**BCMtnHound** · 08-20-2015, 02:55 PM

I'm hearing rumours that the classification of consumption of THC will be downgraded as there has been significant backlash with the lumping of edibles with smokers. Not sure how long or in what form that change will take place.

I'm still not insurable outside of my group policy for any incident arising from skiing or sledding 'off trail' - seems the rash of sledder fatalities (and to a lesser degree backcountry skiers) have led to the underwriters excluding those activities from their coverage here. I would assume the same holds true south of the 49th.

**AK47bp** · 08-20-2015, 02:55 PM

Originally Posted by RootSkier

How old are you, how much did $500k cost, and for how long?

My financial planner hooked me up. Went through Met Life.

I'm 36 and I believe it's either a 20 or 30 year term. Premium is $294 a year.

I don't have the details with me but I got the super healthy rate, lowest risk.

**OldLarry** · 08-20-2015, 02:55 PM

Doesn't everyone have a buddy from school who has relentlessly pitched them life ins to the point where the friendship is threatened?

**gonzo_lives** · 08-20-2015, 02:56 PM

Originally Posted by RootSkier

I'm 35 and I have one shorty with another on the way. I currently only have ~$100K in life insurance through a work plan that did not require any sort of medical exam.

I figure I need at least $500K (likely more) so if I eat it the wife can pay easily pay off the mortgage and set aside enough for the kids' college fund. She makes decent money and is infinitely employable so I am not super concerned about her earning power, especially if she has no mortgage.

I have been Googling around but it's a little overwhelming. The websites that purport to provide multiple quotes from various places seem shady as fuck. Are there reputable sites, or am I going to get spammed into oblivion by filling one of these forms out and giving them my email/phone number? Am I better off to talk to a local broker who works with mutliple carriers as long as he/she is willing to disclose his/her commission rates?

Secondary issue. I have a friend who is in nearly identical circumstances. He might regularly visit places where smoking the green leafy is 100% legal. Would he be better off obstaining from those sorts of things for awhile before applying for life insurance or is it irrelevant in this day and age?

For sure set up a separate email and maybe a burner phone.They are like pirhanas

**Conundrum** · 08-20-2015, 02:58 PM

Sent you a pm. To be fair, I am an insurance broker so you might think my advice is biased and it is. I don't specialize in life insurance nor pursue it but I do write a handful of policies a year when my commercial clients ask me to.

Here's some info-commission for a broker on a term policy averages 80% of the first year premium for one year generally. I've seen down to 50% and up to 105%. A few companies will give a small residual tail like 3-5% per year. Buy a policy from an A rated carrier. Don't lie about anything. But don't do the underwriting interview until you talk to a reputable broker. The different insurance companies have different appetites for different risks. If you are declined by one company for something, it goes out into the insurance cloud so anytime you apply for insurance down the road, you will be flagged making it more difficult to get good rates. Have a broker find the right company for you. Pot is still an auto decline for some companies and some companies rate you as a smoker. Some companies don't care about dip and cigars while some do. "Extreme" hobbies will cost you premium but a good broker will ask the right questions up front and tell you the boundaries. Lying for life insurance isn't a good strategy. Cash value policies (whole and universal) have their places but personally I sell term because if someone needs advice on how to save for the future, they should be talking to a financial planner. Insurance is supposed to make things better when shit happens, not make up for someone being a bad money saver. Home and auto companies can be good but make sure your premium is not tied to having your home and auto with that company for the length of the life insurance policy.

I just placed a healthy 40 year old on a 15 year term for $1 mil and it was roughly $500/year. I just quoted someone the same age in perfect health on a similar policy who is involved in action sports more than any of us shleps and his premium was closer to $5,000/year. We're talking helicopters, ropes, and a risky occupation.

**bagtagley** · 08-20-2015, 03:07 PM

You've probably looked into this, but my employer offers the ability to add onto the provided life insurance for a small fee, up triple the provided coverage. This has been the case at several previous jobs as well.

**RootSkier** · 08-20-2015, 03:08 PM

Originally Posted by Conundrum

I just placed a healthy 40 year old on a 15 year term for $1 mil and it was roughly $500/year.

FKNA. Sign me up. PM replied to.

**RootSkier** · 08-20-2015, 03:09 PM

Originally Posted by bagtagley

You've probably looked into this, but my employer offers the ability to add onto the provided life insurance for a small fee, up triple the provided coverage. This has been the case at several previous jobs as well.

Yeah, the additional here got ridiculously expensive really fast. I am not sure why, but 3x the coverage costs like 6x as much. I couldn't wrap my head around it. Maybe it's because I work with so many old fuckers or something.

**Kinnikinnick** · 08-20-2015, 03:23 PM

You can check Intelliquote for generic price levels, but yeah a broker is where I got it. From my home and auto guys. I checked a while back and from other insurers it was going to be almost 2X as much to change. I think I'm $750/yr for mid forties $1m

**Steven S. Dallas** · 08-20-2015, 03:27 PM

Originally Posted by bagtagley

You've probably looked into this, but my employer offers the ability to add onto the provided life insurance for a small fee, up triple the provided coverage.

My employer offers this as well but it was actually much more expensive than taking out a separate policy.

Pro tip: definitely don't do the old you-take-it-I-got-it routine when handing over your uncapped urine sample, turns out most people hate having piss splashed all over them first thing in the morning.

**TahoeJ** · 08-20-2015, 03:30 PM

Originally Posted by RootSkier

Secondary issue. I have a friend who is in nearly identical circumstances. He might regularly visit places where smoking the green leafy is 100% legal. Would he be better off abstaining from those sorts of things for awhile before applying for life insurance or is it irrelevant in this day and age?

I took out a policy about seven or eight years ago and they didn't even ask about smoking weed, as they're far more concerned about cigarettes. I forgot I had the medical exam and smoked the night before (I rarely ever do so it was a funny coincidence) and I never heard anything about it, so I assume they either didn't even bother testing or didn't care because the actuaries don't really have enough accurate data for that sort of thing anyway.

**G. Gordon Liddy** · 08-20-2015, 04:11 PM

Originally Posted by TahoeJ

I took out a policy about seven or eight years ago and they didn't even ask about smoking weed, as they're far more concerned about cigarettes. I forgot I had the medical exam and smoked the night before (I rarely ever do so it was a funny coincidence) and I never heard anything about it, so I assume they either didn't even bother testing or didn't care because the actuaries don't really have enough accurate data for that sort of thing anyway.

You should probably reapply if you're not a smoker anymore. The rates should be cheaper now. Like Conundrum, I'm a broker (we broker insurance to agents across the country) and write policies from time to time on friends and family (Hi Conundrum, I'm the Rev's buddy in Ketchum).

As per the questions regarding marijuana use. There are a few carriers out there that don't care if you smoke weed. They will give you full non-smoker rates and even best rates, but there are only a few companies that do this so be sure to be sure that your agent really double checks before you do an exam. Don't just do a quote and pick the cheapest is weed is a concern!!

Lastly, my wife and I just took out an additional $1M policies and we didn't have to do the exam at all. We just did a 20 minute call with an underwriter after submitting the application and got the policies issues at best class! Granted we have zero health history, but even with high blood pressure and such most people qualify. And, it was a A rated carrier, not some "oregon lumberjacks teachers accoc fry cook life insurance company".

**irul&ublo** · 08-20-2015, 04:13 PM

Call an independent broker. Tell then term only. They will (or should) be able to give you a comparison sheet with costs, co rating etc,

**TahoeJ** · 08-20-2015, 04:25 PM

Originally Posted by G. Gordon Liddy

You should probably reapply if you're not a smoker anymore.

I never was a smoker of cigarettes. I smoked some weed the night before the exam.

**LightRanger** · 08-20-2015, 04:34 PM

First off, talk to this guy...

Originally Posted by Steven S. Dallas

My employer offers this as well but it was actually much more expensive than taking out a separate policy.

Pro tip: definitely don't do the old you-take-it-I-got-it routine when handing over your uncapped urine sample, turns out most people hate having piss splashed all over them first thing in the morning.

I added onto the small included-in-my-benefits coverage as well. Compared it to what's offered through the State Bar and it's twice the price. I'm gonna cancel and shop around at some point soon.

I'm thinking $750-1mil, given cost of living over here.

**Danno** · 08-20-2015, 04:42 PM

Originally Posted by OldLarry

Doesn't everyone have a buddy from school who has relentlessly pitched them life ins to the point where the friendship is threatened?

Ned!!! Ned Ryerson!!

EDIT: goddamit, I got beat to the punch!

**Danno** · 08-20-2015, 04:48 PM

Originally Posted by bagtagley

You've probably looked into this, but my employer offers the ability to add onto the provided life insurance for a small fee, up triple the provided coverage. This has been the case at several previous jobs as well.

That can be helpful, but even if it's a smoking rate, consider the fact that you may not stay there forever. And 10 years down the road when you leave that job and are shopping, maybe things have changed and you're not such a good risk, have a medical condition, etc.

Add on insurance from a job is great, but IMO it should not be a complete substitute for an independent policy.

**AK47bp** · 08-20-2015, 04:48 PM

Originally Posted by bagtagley

You've probably looked into this, but my employer offers the ability to add onto the provided life insurance for a small fee, up triple the provided coverage. This has been the case at several previous jobs as well.

Yea but that's tied to your employment. Change jobs it's gone unless you convert it, and you convert it you lose the group rate and premium will likely increase a good bit.